What is Retail Real Estate?
Retail properties are used exclusively to market and sell consumer goods and services. They range from shopping centers, individual stores and pop-up shops to ‘big box’ stores. Retail stores include everything from supermarkets, dry-cleaners, restaurants, cafes, pharmacies, bike shops, fashion stores and so on.
We acquire predominantly single tenant retail properties in emerging markets that have a tenant in place. We evaluate opportunities for the ability to force appreciation through increasing rents, converting a NN lease to a NNN lease, extending the lease term, obtaining corporate guarantees, replacing the tenant with a higher grade tenant, etc. As is always the case, we evaluate the opportunity’s relative upside against risk to ensure that our investors receive risk adjusted returns that meet our investment criteria.
We acquire vacant land or land with an obsolete building and develop/redevelop the property to suit a specific tenant. Prior to closing on the property, we negotiate and enter into a net lease with regional or national tenants. This dramatically increases property value through guaranteed income and security from the tenant. Once development is complete, the tenant occupies the property and rent is paid. Securing the lease allows us to obtain favorable financing and provide strong cash flow to our investor, or we have the ability to sell the property and realize a substantial gain immediately.
Preferred Development Arrangements
We have secured preferred developer arrangements with regional, national and international tenants. This relationship provides us with insight into the needs and wants of those tenants in terms of the size, location, and key performance metrics for potential new locations. Armed with this insight, we are able to leverage our self developed national database of brokers to source, underwrite, and close on opportunities that meet those tenants’ parameters.