Brixmor Property Group to Acquire Slate Grocery REIT for $2.34 Billion

By Ahmed Jamerson • Monday, September 28 10:49 • Permanent Link

Brixmor Property Group and Everview Partners agreed to buy Slate Grocery REIT in a transaction valued at $2.34 billion, splitting the portfolio into two pieces with sharply different ownership structures and price tags.

Brixmor will take 23 grocery-anchored shopping centers for $636 million. The assets total about 3 million square feet, and Brixmor said the portfolio is about 96% leased. The centers are all inside Brixmor’s existing operating footprint, mainly in Florida, Georgia and the Carolinas. The company said 22 of the centers will be acquired outright, while it will take a 50% interest in one center.

The remaining 92 shopping centers, totaling about 12 million square feet, will move into a newly formed joint venture led by Everview. Brixmor will own 20% of the common equity in that venture, while Everview will own 80%. Brixmor will also contribute about $174 million of preferred equity to the joint venture, carrying a 9% dividend. Brixmor will serve as asset manager, property manager and leasing representative for the joint venture portfolio.

On a combined basis, the deal covers 115 shopping centers. Brixmor said the transaction includes a portfolio of 100% grocery-anchored assets and that the stores are anchored by chains including Publix, Harris Teeter and Kroger. It also said the in-place rents on the acquired portfolios average 32% below Brixmor’s current portfolio, creating mark-to-market upside.

Brixmor said it has identified about $100 million of redevelopment and outparcel development opportunities in the portfolio, including several potential Publix redevelopment projects. The company said the assets are projected to generate long-term NOI growth consistent with its 4% target.

The transaction is expected to close in the first quarter of 2027. Brixmor said it expects the deal to be immediately accretive to NAREIT FFO per share. As a result of these announcements, the company's shares have moved 1.23% on the market, and are now trading at a price of $28.07. For the full picture, make sure to review Brixmor Property's 8-K report.

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