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Close to $3B Deal for Calpers and First Washington Donahue Schreiber

(Bloomberg) — formerly Washington Realty Inc., a real estate landlord, and California Public Employees Retirement System are close to a deal to acquire Donahue Schreiber Realty Group, the homeowner of grocery-connected shopping-centers, for more than $3 billion, According to the knowledgeable people of the matter.

A transaction could be completed in the coming weeks, though time could still slip, said one of the people, who requested anonymity while discussing the private conversation. It is also possible that the deal may break at the last minute.

Costa Mesa, Calif.-based Donahue Schreiber counts Michael Glimcher as its chief executive officer and JPMorgan Chase & Company and New York State Teachers Retirement System among its biggest investors. According to a statement, the company owns and operates 60 shopping centers that were valued at over $3.5 billion as of October 2020.

The closely held REIT said in 2017 that since 2011, JPMorgan Asset Management-advising investors and NYSTRS had invested $650 million in Donahue Schreiber, funding acquisitions and redevelopment in markets including San Diego and Seattle.

Representatives for First Washington, JPMorgan Asset Management, Calpars and NYSTRS declined to comment. A spokesman for Donahue Schreiber did not immediately respond to requests for comment.

First Washington, based in Bethesda, Maryland, has 107 shopping centers in 22 US states and the District of Columbia, with a combined value of more than $5.8 billion, its website shows. It is led by CEO Alex Nyhan.

Any transaction for Donahue Schreiber takes place amid ongoing consolidation between the landlords of the shopping center. Last year, Kite Realty Group Trust completed the purchase of the retail properties of America Inc. and Kymco Realty Corp. Weingarten Realty acquired investors.

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