Corporate Governance

Columbus, Ohio -- Big Lots announced the appointment of three general merchandise managers as part of realigning the merchandising organization into customer-centric categories of food and consumables, furniture and home decor, and seasonal, toys and electronics.

Trey Johnson was promoted to senior VP, general merchandise manager for food and consumables.

Trademark has invested in two distressed properties, with plans to transform both into top performers

The slow recovery is leading many developers to examine growth alternatives to new development. Consider, for example, Fort Worth, Texas-based Trademark Property Co.’s idea: invest in distressed properties with excellent real estate and redevelop into new and ambitious concepts. Examples include The Shops at Napa Center in Napa, Calif., and Victory Park in Dallas.

While owners and developers are redeveloping, expanding and beginning to plan new developments across the Northeast, property surpluses created by the recession remain. Where are these surpluses? How will they be disposed of? Chain Store Age asked Andy Graiser, co-president of A&G Realty Partners, to talk about disposition today in the Northeast. Graiser is a property disposition expert with more than 25 years of experience with retail real estate.

Characterize surplus retail real estate in the Northeast.

Optimizing retail store portfolios and optimizing shopping center portfolios seem like two different things. In fact, the two tasks have similarities.

“To retailers, optimization is getting store deployment across the marketplace right,” explained Mike Makinen, COO with MPI, Mall Properties Inc., New York City. “We have a similar strategy. We have a mix of retailers within our shopping center portfolio, and we try to optimize the assortment of retailers, restaurants and service tenants within each center.”

Real estate’s role in portfolio optimization

Real estate plays a key role in optimizing retail store portfolios. Stores must have enough square footage but never too much. Portfolios must also match the number of stores across regions to customer demand. 

“Portfolio optimization means reducing or adding store square footage and matching merchandising and inventory to customer demand in a trade area,” said Kenneth Katz, principal with Houston-based Baker Katz. 

Disposition firm: A&G Realty Partners

Number of properties: 600

Locations: 95% in strip centers, with the balance in middle market malls across the United States

Status: A&G successfully terminated more than 300 leases. The balance had natural lease expirations.

Location: Downtown Erie, Pa.

Size: 196,728 sq. ft.

Developer: Existing property acquired in August 2013 by Phillips Edison-ARC Shopping Center REIT Inc.

Major tenants: Giant Eagle, Panera Bread, The UPS Store, GNC, Wells Fargo, Eat’n Park

Location: Thornwood, N.Y., in Westchester County    

Size: 20,175 sq. ft. 

Developer: DLC Management Corp.    

Major tenants: Walgreens    

Status: Complete    

Location: Moorestown, N.J.

Size: 1,001,000 sq. ft.

Developer: PREIT

Major tenants: Lord & Taylor, Marc Vetri’s Osteria, Jose Garces’ Distrito, Firebirds Wood Fired Grill, Regal Premium Experience Theater, Rizzieri Salon & Spa, Francesca’s Collection (in lease negotiations) and a number of best-of-breed regional retailers

Status: Redevelopment to be completed in 2014 

Location: Ashburn, Va. 

Size: Approximately 100,000 sq. ft.    

Developer: Regency Centers 

Major tenants: Whole Foods Market will anchor the project. Regency is currently negotiating with prospective specialty retail, restaurant and health and wellness tenants.

Status: Proposed start is spring 2014, with completion planned for fall 2014.