- Phillips Edison extended its Northwestern Mutual partnership by 10 years and plans to move 13 centers valued around $377.5 million into the venture.
- At completion, Grocery Retail Partners I is expected to hold more than 40 centers in 17 states, roughly $1.2 billion of assets, with Northwestern owning 86%.
- Phillips Edison updated its 2026 guidance to $600 million to $700 million in gross acquisitions, as grocery ranks first in Cushman & Wakefield’s performance ranking by sales volume.
Phillips Edison & Company has extended its Northwestern Mutual partnership on grocery-anchored centers by 10 years, according to GlobeSt.
The expanded venture is expected to reach about $1.2 billion in assets under management.
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Deal Terms
The partnership, Grocery Retail Partners I LLC, plans to acquire 13 Phillips Edison-operated shopping centers valued at roughly $377.5 million. When complete, it is expected to hold more than 40 centers in 17 states.
Northwestern Mutual keeps 86% of the venture and Phillips Edison holds 14%. Phillips Edison also provides leasing, property and asset management services for the portfolio.
Recycling Capital Into Growth
Chairman and CEO Jeff Edison said the expansion monetizes stabilized assets and redeploys the capital into grocery-anchored and Everyday Retail opportunities with strong growth potential.
The Cincinnati-based firm updated 2026 guidance to $600 million to $700 million in gross acquisitions and $200 million to $250 million in joint venture contributions. It expects 6.3% Nareit FFO per diluted share growth, 6.2% Core FFO growth and a 3.7% NOI gain.
Grocery Leads the Rankings
A recent Cushman & Wakefield analysis ranked grocery at the top of the strongest property subtypes by sales volume, ahead of post-2010 bulk distribution, suburban luxury apartments, medical office and strip centers. Grocery anchors benefit from meeting daily consumer needs, a theme also behind the grocery REIT consolidation.
Why It Matters
The venture shows institutional appetite for stable grocery-anchored income and gives Phillips Edison fee revenue plus balance sheet flexibility. Northwestern Mutual, with investment holdings above $60 billion, remains an active real estate buyer.
What’s Next
Watch how quickly Phillips Edison redeploys proceeds toward its 2026 acquisition target, especially as retail sales strength supports tenant demand. The volume and length of the partnership changed, but the equity split did not.
