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| FREQUENTLY ASKED QUESTIONS |
What type of retail properties does Phillips Edison buy?
We seek under-utilized, value-add, grocery-anchored shopping centers nationwide. Significant vacancies, environmental issues, short-term leases, deferred maintenance issues, market disruptions by other retail centers are all issues we welcome.
What is the minimum size and dollar amount Phillips Edison will buy?
Typically we look for centers larger than 60,000 square feet and more than $3,000,000.
Does Phillips Edison require a particular type of anchor?
We have a strong preference for grocery-anchored properties, with about 80% of our properties being anchored by grocery stores. However, centers with other types of anchors will be considered if they are leaders in their category.
Is Phillips Edison seeking to acquire portfolios or groups of properties?
Yes. We are interested in acquiring single assets as well as entire portfolios. We are one of the few companies that have the financial strength and the management capability to buy in bulk distressed properties.
Does Phillips Edison require ownership of the anchor tenant?
Ownership of at least some of the anchor space is preferred, but we do purchase shopping centers that are shadow-anchored if there is an opportunity to add value.
What level of sales is required of grocery anchors?
Minimum sales per week depend greatly on who is the grocery operator. This weekly sales figure cannot be viewed alone, as a number of other factors are considered, such as the store's long-term trend in sales, anchor profitability, size of store competition, financial strength and trade area growth potential.
Does Phillips Edison participate as a broker?
No. We act only as a principal in acquisitions.
Is Phillips Edison interested in entering into a joint venture or acquiring a partial interest in a property?
Yes, on a case-by-case basis.
Does Phillips Edison consider properties that are subject to a ground lease?
Yes, on a case-by-case basis. We will consider such factors as the remaining term and predictability of future ground rental payments. Typically higher yields are required on such properties.
Will Phillips Edison consider centers where the anchor lease will expire in the near future?
Yes. Phillips Edison will focus on the renewal probability or the ability to recycle the space to a new tenant.
Does Phillips Edison make unsolicited offers?
Yes, but only if basic information is available in order to properly value the property. The company is always open to the idea of meeting with potential sellers who have not yet made the decision to sell. This latter approach is usually more effective than making uninvited offers.
Are development or redevelopment opportunities of interest?
Yes. Properties with redevelopment potential are our primary target. In addition, our ground-up development business is expanding and pursuing joint venture opportunities. Our development, construction and leasing staffs are experts at responding to any development and redevelopment opportunities.
Will Phillips Edison acquire property that requires zoning, rezoning or additional entitlements?
Yes. With the property owner's cooperation, Phillips Edison will secure the necessary entitlements during the option period. Typically, the Close of Escrow is contingent upon receiving the required entitlements.
What are Phillips Edison's preferences for anchor tenant transactions?
First preference is a standard build-to-suit; second is a ground lease; and least desirable is a pad sale. |
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