EXCLUSIVE: Cincinnati real estate company acquires $60M portfolio
EXCLUSIVE: Cincinnati real estate company acquires $60M portfolio
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Feb 22, 2016, 2:41pm EST
A Greater Cincinnati real estate investment company purchased a six-property shopping center portfolio for $60 million. Select Strategies Retail Holdings IV LLC, an affiliate of privately held real estate investment firm Select Strategies Realty, purchased the shopping centers in Ohio, South Carolina and Missouri from New York investment firm Garrison Investment Group at the beginning of February. The affiliate is
made up of a group of investors including the
principals of Select Strategies Realty, who are the managing principals of the limited liability company. In total, the 870,000-square-foot portfolio was about
95 percent occupied at the time of the sale.
Brian Neltner, CEO of Select Strategies Realty, said the portfolio will be getting about $40 million in upgrades.
“Every one of these has a significant redevelopment opportunity,” Neltner told me.
Some of the potential upgrades include undeveloped outlots, available acreage for new development and bringing new tenants into the centers.
The shopping centers included in the purchase are the 101,300-square-foot Mayfair Shopping Center in St. Louis, the 125,000-square-foot Cross Pointe Shopping Center in Dayton, a 17t200-square-foot Kmart Plaza in Brunswick, Ohio, the 216,200-square-foot Wesmark Plaza in Sumter, S.C., the 138,500- square-foot West Market Plaza in Akron, and the 117,600-square-foot Westerville Plaza in Columbus.
Select Strategies Realty is a privately held real estate investment company that specializes in the development, acquisition, management and leasing of retail and mixed- use real estate in the Midwest and Southeastern U.S. Select has sponsored retail investments totaling more than $100 million and provides management and leasing services for more than 4.5 million square feet of retail space.
Neltner said the group acquired these properties because it is familiar with the individua I properties and their retail trade areas.
“We know these markets welL” Neltner told me. “We have boots on the ground.”
Reynolds Thompson, chairman and chief investment officer for Select Strategies Realty, said the firm combines an operator’s perspective with investment experience.
“This portfolio is an excellent example of how a disconnect exists between the investment community’s perception of risk in these assets and the risk we believe to be reality,” Thompson said.
Select Strategies Realty formed its Select Retail Advisors program in 2015 to pursue investment opportunities on behalf of the firm’s principals and investment partners. Plans for Select Strategies Retail Holdings V are underway.
Alliance Real Estate provided Select Strategies Retail Holdings IV with investment advisory services, including the sourcing of equity and debt capital for the deal. Alliance is a privately held investment management firm specializing in real estate investment management and advisory services for the family office community to whom it provides customized real estate portfolios delivered with flexibility, control and institutional-quality oversight.
Founded in 2005, Select Strategies Realty has offices in Atlanta and Macon, Ga.; Birmingham, Ala.; Beaufort, S.C.; Greensboro, N.C.; Orlando and Deerfield Beach, Fla.; Columbus; Youngstown, and Fort Thomas. The 30-employee firm manages and leases retail assets in 10 states as well as office and multifamily properties in Ohio and Kentucky.
Tom Demeropolis Senior Staff Reporter Cincinnati Business Courier
