- Newport Pavilion, a 332,309-square-foot shopping center in Newport, has been sold in a transaction announced by commercial real estate firm Newmark, though the buyer remains undisclosed.
- The 55-acre retail center is anchored by Kroger and Target and serves shoppers from Northern Kentucky and Greater Cincinnati, drawing approximately 260,000 residents within a five-mile radius.
- The property has a complex ownership history, including ownership by Inland Real Estate and DRA Advisors, and was originally developed by Bear Creek Capital before local investors stepped in during the project’s financial difficulties.
Ownership of one of Northern Kentucky’s largest shopping centers has changed hands.
Newport Pavilion is a 55-acre, 332,309-square-foot grocery-anchored shopping center located off Carothers Road in Newport. The shopping complex is among the most heavily trafficked retail areas in Northern Kentucky, serving shoppers from northern Campbell and Kenton counties, as well as some from southern Cincinnati.
On Tuesday, June 2, New York City-based commercial real estate firm Newmark announced the sale of Newport Pavilion in a press release. As of now, the buyer has yet to be identified.
The seller is listed as The Ranier Companies, a Dallas-based real estate holding company that owns shopping centers and apartment complexes in Kentucky, Texas, Georgia, Colorado, Indiana, Oklahoma and Missouri. There is no reported sale price. Rainier’s website states that the company purchased Newport Pavilion in 2001.
The complex is anchored by a Kroger, which is accompanied by smaller retailers such as Dick’s Sporting Goods, TJ Maxx, Michaels, ULTA Beauty, PetSmart and Chipotle. Each of these retailers is listed within Newmark’s sale press release. The complex’s other anchor tenant, Target, is not named within the release.
Newmark’s Senior Managing Director Keely Polczynski said in the press release that the property attracted the buyer because of its strong foot traffic and high occupancy rates.
“With its cross-border consumer draw, strong demographics and best-in-class tenancy, Newport Pavilion has established itself as a premier retail destination within the greater Cincinnati region,” Polczynski said. “Assets with this level of occupancy, traffic and merchandising quality remain highly sought after as investors continue to prioritize necessity-based retail with proven operating performance.”
In addition, the press release notes that Newport Pavilion caters to roughly 260,000 residents and 115,000 households within a five-mile radius. The shopping center—completed in 2008—is located off I-471, which connects northern Campbell County to Cincinnati.
Campbell County property records indicate that the Newport Pavilion Kroger is associated with 814 Commerce Drive in Oak Brook, Illinois. Real estate investment firm IRC Retail Investors is listed at that address. The firm owns several shopping centers across the southeast and central United States.
“The sale of Newport Pavilion reflects the continued demand for well-located retail assets across the country,” Rainier Companies CEO Danny Lovell said in the release. “We appreciate the expertise and thoughtful, disciplined approach that Newmark brought to the process, which helped our partners achieve a successful result.”
Prior to its purchase by Ranier, Newport Pavilion changed hands several times. In 2014, Inland Real Estate Corp., through a joint venture with Dutch pension fund adviser PGGM, acquired two portions of the shopping center for nearly $67 million.
Fort Thomas Matters, a predecessor to LINK nky, reported that Inland Real Estate was acquired by investment funds managed by DRA Advisors LLC in a $2.3 billion transaction, with Newport Pavilion remaining a part of the portfolio.
Newport Pavilion was developed by Bear Creek Capital, but due to financial troubles, a group of local investors led by Anchor Investment Partners LLC stepped in and purchased the debt secured by Newport Pavilion from Bank of America.
