CINCINNATI, July 24, 2012 /PRNewswire/ — Phillips Edison Strategic Investment Fund II LLC has agreed to purchase Kenwood Towne Place from a bank lending group led by Bank of America. The project is located in Cincinnati, Ohio, adjacent to the dominant regional enclosed mall Kenwood Towne Centre. The project consists of 300,000 square feet of upscale retail and 200,000 square feet of Class A office space. Current retail tenants include Crate & Barrel, The Container Store, Mitchell’s Salon & Day Spa, and LA Fitness. The development and construction of Kenwood Towne Place was interrupted in 2008 due to the project’s financial problems.

“This property is at the epicenter for Cincinnati commercial real estate and is the dominant regional draw for retail in Southern Ohio and Northern Kentucky,” said David Birdsall, senior vice president and manager of the Strategic Investment Funds. “Kenwood is also the healthiest office market in greater Cincinnati with one of the lowest office vacancy rates in the seven-county MSA. This is an ideal candidate for our Fund’s portfolio of complex properties that present opportunities for significantly enhancing existing cash flow and generating strong investment returns. Our experienced team will execute a high-level retail and office merchandising plan that will complement both Kenwood Towne Centre and the surrounding demographics. Our operating platform of over 200 associates managing over 25 million square feet will allow a timely completion of the project. We look forward to working with Sycamore Township, the Port of Greater Cincinnati, Kenwood Towne Centre, the tenants and other organizations to restart the project and fulfill its potential.”

This is the third purchase for Strategic Investment Fund II, a follow-on fund to Strategic Investment Fund I, which Phillips Edison established in 2007 to focus on buying and improving upon large distressed real estate opportunities that could benefit from the company’s well-known and successful operating platform. With Fund I fully invested, the company raised $57 million of new equity in 2011 from its well established pool of investors to take advantage of real estate opportunities in the marketplace.

Phillips Edison & Company is a fully integrated retail real estate company which owns and manages more than 220 neighborhood and community shopping centers in 35 states. The company has headquarters in Cincinnati and Salt Lake City, as well as regional offices across the country. For more information, visit www.phillipsedison.com.

SOURCE Phillips Edison & Company