CBRE Investment Management Fund Acquires Dominant Class A Community Shopping Center in the Affluent Suburbs of Louisville, Kentucky

CBRE Strategic Partners U.S. Value 9, through a joint venture with Fairbourne Properties, has acquired Paddock Shops, a 353,665-square-foot, grocery-anchored community shopping center located at 4055 Summit Plaza Drive in Louisville, Kentucky.

The open-air Paddock Shops are 88% leased to a diverse roster of tenants in the grocery, fashion, restaurant and home goods retail subsectors. The property features 1,976 parking spaces and is conveniently situated within the affluent suburbs of Louisville, approximately nine miles from Downtown Louisville.

“The national retail sector is experiencing a strong resurgence and positive fundamentals, and suburban retail centers have shown resilience and growth over the last several years. We believe that Paddock Shops’ diverse blend of essential and experiential stores, combined with its strategic location in an affluent and expanding trade area, will contribute to its long-term success as a prominent shopping destination within the region,” said Colin Rosenbaum, Senior Director, Americas Direct Commercial Acquisitions for CBRE Investment Management.

According to CBRE’s U.S. Q3 2023 Retail Report, national retail fundamentals remain strong with the net absorption of space increasing 34% quarter-over-quarter and overall retail availability rates falling to at least an 18-year low. Retail spaces in the neighborhood, community and strip center segment, such as Paddock Shops, saw the largest decrease of availability on a national level by 50 bps, year-over-year, to 6.6%, indicating healthy leasing demand for these properties across markets. As of Q3 2023, Louisville’s retail market had an availability rate of just 3.4%, and the Northeast submarket, which Paddock Shops is in, was 40 bps lower, at 3.0%.

About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $144.2 billion in assets under management* as of September 30, 2023, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.

CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2022 revenue). CBRE has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.