(EDITOR’S NOTE: NYSTRS sees that Donahue Schriber focusing on investing in assets with very strong grocery stores as making a difference. The investor wrote in an email, “The company is focused on dominate grocers in the retail submarket with in-line tenant bases that tend to be resistant to online sales. The centers are located in communities with strong demographics from a population and income standpoint.”
The pension fund has been an investor in Donahue Scriber for a long time and produced very strong returns. This relationship was started in 1997. The pension fund stated in an email that through June 30th of this year the since inception return on this investment has been 9.3 percent on an annualized basis.
The investment in Donahue Schriber has been made through the pension fund’s separate account manager J.P. Morgan Asset Management. NYSTRS has invested a total of $390 million into the company to date. The pension fund has outstanding commitments to Donahue Schriber of $126 million, which includes the new $100 million allocation.
The new $100 million investment into Donahue Schriber by J.P. Morgan was funded through the J.P. Morgan Strategy Property Fund. This is a core open-ended commingled fund.
“Grocery-anchored shopping centers continue to experience a favorable supply/demand dynamic, making them of significant interest to investors. With over 60 properties representing 11 million square feet of retail across the West Coast, Donahue Schriber falls squarely in this category offering access to convenience- and service-oriented shopping centers in densely populated areas,” said Doung Schwartz, chief investment officer of Real Estate Americas for J.P. Morgan.
“We feel very fortunate to have two major institutional investors as our capital sources. We don’t have to go and raise capital from a bunch of other investors like many other companies do,” said Pat Donahue, chief executive officer for Donahue Schriber.)
COSTA MESA, Calif. – Donahue Schriber Realty Group (DSRG), a privately-held Real Estate Investment Trust (REIT) specializing in grocery-anchored shopping centers, has received a $200 million equity investment from institutional investors advised by J.P. Morgan Asset Management and from New York State Teachers’ Retirement System (NYSTRS). Each has provided $100 million in capital that will fund acquisitions and redevelopments focused on grocery-anchored shopping centers in high barrier to entry markets from San Diego to Seattle.
Since 2011, J.P. Morgan Asset Management-advised investors and NYSTRS have invested a total of $650 million of growth capital with Donahue Schriber. The privately-held REIT owns and operates over $3 billion in retail shopping center assets and is a recognized leader in the development, management, and leasing of neighborhood, community, and power centers.
“Our relationship with J.P. Morgan Asset Management and NYSTRS has been exceptional. We will be utilizing the additional $200 million equity investment to expand our existing portfolio throughout Coastal California and the Pacific Northwest. Our company’s strategy will remain focused on the grocery-anchored sector,” said Patrick S. Donahue, Chairman and Chief Executive Officer.
About Donahue Schriber Realty Group
Donahue Schriber is a privately-held Real Estate Investment Trust (REIT) with over 60 shopping centers representing over 11 million square feet of retail space throughout California, Oregon, and Washington. For more information: donahueschriber.com
About J.P. Morgan Global Alternatives
J.P. Morgan Global Alternatives is the alternative investment arm of J.P. Morgan Asset Management. With more than $120 billion in assets under management and over 800 professionals (as of June 30, 2017), we offer strategies across the alternative investment spectrum including real estate, private equity and credit, infrastructure, transportation, liquid alternatives, and hedge funds. Operating from 23 offices throughout the Americas, Europe and Asia Pacific, our independent alternative investment engines combine specialist knowledge and singular focus with the global reach, vast resources and powerful infrastructure of J.P. Morgan to help meet each client’s specific objectives. For more information: www.jpmorganassetmanagement.com.
About New York State Teachers’ Retirement System
The New York State Teachers’ Retirement System provides retirement, disability and death benefits to eligible New York State public school teachers and administrators. NYSTRS is one of the 10-largest public retirement systems in the nation.