339k sq ft neighbourhood retail centre

In 2018, Warren Private acquired a 339k sq ft grocery-anchored neighbourhood retail centre in the Bridgeville suburb of Pittsburgh, Pennsylvania, USA in conjunction with our US operating partner Pearson Partners Inc.

Built in 1956 and extensively renovated between 2005 and 2008, the property is situated on a large 43 acre site which also contains 1,589 surface car parking spaces. The property consists of 43 retail units. It is a long established trading location and is anchored by a 45k sq ft gym with indoor swimming pool and basketball courts, a 38k sq ft TJ Maxx outlet store and an organic food marketplace called Fresh Thyme. The other tenants are a mix of national tenants and regional tenants.

The Bridgeville suburb of Pittsburgh is located nine miles south west of downtown Pittsburgh and has a population of 61,500 residents. The property was among the suburban shopping centre in the area and is the leading shopping centre within this trade area. The barriers to entry for new entrants are extremely high as the ability to find level sites with good street visibility for new development is severely limited.

Since acquisition, Pearson Partners Inc have grown net operating income through re-lettings and effective cost management.

The investment period is five years, and projected returns are strong at a pre-tax IRR of c.14% and a pre-tax profit of c.80% of investors’ original investment amount.