While the pension fund will consider bids for the whole portfolio, sources believe that it will ultimately be sold to multiple buyers. Pension funds, REITs, foreign investors and private investors are expected to bid on the properties, most of which are located in the mid-Atlantic region.
A strong sellers’ market has driven prices through the roof while knocking down yields. This suggests that CalPERS — which recently lowered its allocation towards real estate — could be challenged to deploy sales proceeds into other retail properties.
Foreign investors — especially Australian property trusts — are strong contenders to snap up some of this portfolio.
Most of the properties are located in Washington, DC, Maryland, Pennsylvania and Virginia. The remaining properties are spread across California, Florida, Illinois, Minnesota, Colorado and Texas.
