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Investor Raises $225M To Buy Shopping Centers Anchored By Ethnic Grocers

An H Mart location in Irvine, California.

Boston-based Longpoint Realty Partners has closed on a $225M fund aimed at investments for unique shopping centers catering to neighborhoods' specific ethnic and multicultural populations.

The Longpoint Specialty Grocer Fund I, which exceeded its initial investment target of $200M, will invest in the shopping centers home to grocers in high-growth markets like Florida, Texas and California, the investment firm announced in a press release.

“In 2015, we set out to cultivate culturally relevant shopping centers focused on the evolving needs and demographics of our communities — this exemplifies our tagline of ‘Welcome to the Neighborhood,’ or ‘Bienvenidos a Nuestro Barrio,’” Longpoint founder Dwight Angelini said in a statement.

The fund has already acquired eight properties for $166M in Dallas, Miami, Orlando and Los Angeles, and the plan is to acquire between 17 and 20 total, according to the release. Angelini said Longpoint has bought at least one of these types of properties each year since it was established in 2015, PERE reported.

The shopping centers are typically anchored by stores like El Rancho Supermercado or Asian grocer H Mart, but there is a chance for investment in areas populated by other minority groups. The firm has invested $2.1B in over 100 transactions since 2015. In addition to its Boston headquarters, Longpoint has offices in Atlanta, Dallas, Los Angeles, Miami, New Jersey and D.C.  

A resilient asset class throughout the pandemic, grocery-anchored shopping centers have been eyed by both private and public institutional investors looking for a safe bet in uncertain times. By offering stable rents and lower vacancies than other assets, these shopping centers saw their second consecutive record year in 2022 with $14.7B in total transaction volume, according to JLL's Grocery Tracker report.