Finance & Capital Management

Opportunistic acquirers continue retail’s reinvention, making business good for creative management companies

Unusual circumstances are forging the best of times for third-party shopping center managers. Rampant store closings, after-effects of the commercial mortgage backed securities crash, and opportunistic buyers are creating opportunities for innovative managers to reinvent properties for their clients.

Whether purchasing individual assets or restructuring entire portfolios, top acquirers have plans and stick to them.

Stick to your knitting. That appears to be the mantra for this year’s top acquirers, all of which, save one, have appeared on this list in previous years. Most relate that, in the late stages of a recovery, discipline, tenacity and structure are key to closing deals. This year, staffers at two of these tenacious companies can chant, “We’re No. 1!”

Given the success of this year’s Fastest-Growing Acquirers, it’s understandable to think the process seems simple. Well, it’s not as easy as it looks, warned G. Joseph Cosenza, president of Oak Brook, Ill.-based Inland Real Estate Acquisitions. Quality must meet opportunity and yield, he said.

The grocery-anchored center remains as strong an investment as ever, Cosenza said. An Inland fund that’s dominated by grocery-anchored projects (approximately 80%) has 95% occupancy. Supermarket renewals are resulting in rent increases of 10% and higher.

Abercrombie & Fitch may sell itself.   The teen apparel chain on Wednesday confirmed it is in preliminary discussions with several parties regarding a potential transaction with the company.   Abercrombie confirmed the news after Reuters reported that the retailer had hired an investment bank, Perella Weinberg Partners, to field takeover interest from other retailers.  

Every business magazine sports an “X Under 40” list celebrating precocious professionals. But, really, isn’t it almost always youthful drive and optimism that feeds the engine of progress?

The stories of Chain Store Age’s 2017 list of over-achievers under 40 abound with examples of young people from different disciplines who all discovered retail real estate as the perfect channel for their passions.

There’s no denying that Amazon has changed the face of retail, but there are many misconceptions about how the company actually operates. Unfortunately, these fallacies are leading many retail companies into making bad strategic business decisions as they try to duplicate Amazon’s success.

The following is a breakdown of some myths — along with a few takeaways: