GCM Grosvenor Backs Hyperion’s Grocery-Anchored Retail Expansion

Hyperion Realty Capital has formed a strategic partnership with GCM Grosvenor that includes a commitment of up to $100 million for a new closed-end fund targeting value-add grocery-anchored shopping centers across the Western United States. 

The vehicle, Hyperion Grocery Retail Partners III, is seeking $200 million of equity and could assemble a portfolio representing as much as $1 billion in aggregate property value as it admits additional investors. GCM Grosvenor also will join Hyperion’s board of directors. 

The strategy will focus on middle-market neighborhood, strip and community shopping centers, a segment Hyperion said has historically received less institutional capital than larger-format retail assets. The firm plans to pursue value creation through lease-up of vacant space, re-tenanting, mark-to-market rent increases and outparcel monetization. 

Hyperion, founded in 2019 by Jon Mendis, owns and operates 10 shopping centers in major West Coast markets, with most acquisitions sourced through off-market or relationship-driven channels. The firm’s principals have completed more than $4 billion of grocery-anchored retail transactions and average more than 15 years of sector experience, Hyperion said. 

Mendis previously led investments at Retail Opportunity Investments Corp., the West Coast grocery-anchored shopping-center REIT acquired by Blackstone in a $4 billion take-private transaction completed in February 2025. ROIC owned 93 grocery-anchored properties totaling 10.5 million square feet in markets including Los Angeles, Seattle, San Francisco and Portland. 

“We are excited to partner with Jon and the Hyperion team to help build a leading grocery-anchored retail platform,” Peter Braffman, managing director at GCM Grosvenor, said.