A US retail real estate-focused investment manager backed by the California Public Employees’ Retirement System has bought Donahue Schriber Realty from institutional investors advised by JP Morgan Global Alternatives.

First Washington Realty said it has acquired Donahue Schriber, a private real estate investment trust a company majority-owned by the JP Morgan Strategic Property Fund and New York State Teachers Retirement System (NYSTRS). Financial terms were undisclosed.

NYSTRS told IPE Real Assets that the sale puts the pension fund more in line with its strategic plan by lowering its exposure to retail assets. 

JP Morgan declined a request for comment.

First Washington specialises in the ownership and operation of convenience and necessity retail. Donahue Schriber owns a portfolio of shopping centres in the Western US, including the Bay Area, Orange County, Portland, Sacramento, San Diego, and Seattle.

The acquisition expands First Washington’s portfolio to include over 20m sqft of retail space, serving over 3,600 tenants across 22 US states and the District of Columbia.

Alex Nyhan, First Washington Realty’s CEO, said: “We have been following the performance of this portfolio for the past three years and it’s a portfolio that we really wanted to acquire.

“This portfolio will allow us to grow our existing West Coast portfolio which had been valued at $1.5bn before this acquisition took place. As part of this purchase, we now have 50 new employees that used to work for Donahue Schriber.”

DLA Piper served as primary legal counsel to First Washington Realty and Goodwin Procter served as legal counsel to Donahue Schriber. Eastdil Secured was the exclusive financial advisor to Donahue Schriber.

Jon Peterson contributed to this story

To read the latest edition of the latest IPE Real Assets magazine click here.