Cohen & Steers Income Opportunities REIT, Inc. (CNSREIT) announced a joint‑venture acquisition of the 288,000‑square‑foot Rio Hill Shopping Center in Charlottesville, Virginia. The grocery‑anchored, open‑air property is being acquired through a partnership with Phillips Edison & Company (PECO), with CNSREIT holding an 80% equity stake and PECO the remaining 20%. The transaction is the third collaboration between the two firms and the seventh open‑air shopping center added to CNSREIT’s portfolio.
The deal reinforces CNSREIT’s focus on high‑quality, cash‑generating assets that benefit from stable, necessity‑driven tenants. Kroger anchors the center, with two TJX‑concept stores completing the tenant mix. The acquisition aligns with the broader Cohen & Steers strategy of investing in income‑focused, stabilized real‑estate assets and expands the REIT’s exposure to the resilient open‑air retail segment, which has seen a 95.7% occupancy rate—the highest in 16 years according to CoStar Group.
James S. Corl, CEO of CNSREIT, highlighted the property’s strong tenancy and the favorable market conditions in Charlottesville, noting that the median household income within a three‑mile radius is $81,000 and that the city’s income growth has risen 52% since 2015. Corl added that the partnership with PECO will provide operational synergies and leverage PECO’s expertise in managing similar grocery‑anchored centers.
The acquisition positions CNSREIT to capture continued growth in the open‑air retail market, while the joint‑venture structure allows the REIT to benefit from PECO’s operational efficiencies. The move also supports Cohen & Steers’ broader real‑asset strategy, diversifying its platform and strengthening its income stream in a market that has demonstrated robust demand for grocery‑anchored shopping centers.
The deal value was not disclosed in the announcement, but the joint‑venture structure and the property’s size and tenant profile underscore the strategic importance of the transaction for CNSREIT’s portfolio expansion.
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