Invesco REIT Buys Raleigh Retail Center for $87.2M

AltsWire reports that Invesco Real Estate Income Trust bought the Raleigh-area retail center for $87.2M. Its coverage of the Knightdale Marketplace acquisition also details the REIT’s latest fundraising and portfolio metrics. The fully leased property adds a sizable shopping center to the nontraded REIT while fundraising accelerates and portfolio leverage moves modestly lower.

The Details

The purchase price included closing and leasing costs, according to AltsWire. Knightdale Marketplace totals 323,113 SF and is 100% leased. Its weighted average lease term is about seven years. The transaction closed September 10, after the REIT’s August 31 valuation date, so the asset is not included in the latest reported NAV.

Invesco REIT reported total NAV of $663.1M as of August 31, up from $661.2M one month earlier. AltsWire said per-share NAV was essentially unchanged across all eight share classes. Class N, which represents roughly two-thirds of total NAV, rose to $27.8619 from $27.8324 in July.

Class I shares, commonly used by institutional investors, increased slightly to $26.3155 from $26.3087 in July, according to AltsWire. The modest movement across share classes underscores that the August valuation changed little before the retail acquisition was added to the portfolio.

Fundraising Picks Up

Capital raising accelerated during August. AltsWire reported $79.2M of gross proceeds quarter to date through August 31, compared with $46.2M through July 31. That implies roughly $33M of new subscriptions during August. The company is offering up to $3B of shares in a follow-on continuous offering that began in November 2024.

Repurchase requests also increased but remained fully satisfied. Stockholders requested $7.9M of repurchases across July and August, compared with $3.5M in July alone, according to AltsWire. The REIT fulfilled all requests without proration in both months.

The fundraising acceleration came as per-share NAV remained nearly flat. That combination gives the REIT additional subscription capital while the reported value of the existing portfolio changes only modestly month to month.

Why It Matters

The acquisition adds a fully occupied asset while several portfolio metrics softened modestly. AltsWire said weighted average occupancy across 71 direct properties slipped to 93% from 95% in July. The portfolio still totaled about 11.5M SF across 32 markets. Direct real estate represented 77% of gross assets, while leverage declined to 25% from 26%.

The deal also fits broader retail REIT acquisition interest as capital continues moving toward shopping-center assets. In July, Invesco REIT also issued 506,837 operating partnership units for real estate interests representing a $13.3M net investment, expanding through an UPREIT structure rather than a cash acquisition.

Private real estate credit remained about 16% of gross assets across four investments, according to AltsWire. Invesco REIT made no comparable operating-partnership-unit issuance disclosure for August after using that structure for the $13.3M July investment.

What’s Next

The REIT is still using an adviser-funded incentive to support subscriptions. AltsWire said eligible investors in Class T, S, D and I shares can receive bonus shares equal to 5% of accepted commitments through December 1. The bonus steps down to 3% through March 1, 2027.

Invesco reiterated that the adviser funds the bonus shares at no cost to the company or existing stockholders. The next reported NAV period will also be the first to reflect the Knightdale acquisition in the portfolio.