EXCLUSIVE: Cincinnati real estate company acquires $60M portfolio
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 IV 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
GARRISON INVESTMENT GROUP ANNOUNCES THE PURCHASE OF A NEW RETAIL PORTFOLIO IN OHIO
New York, NY – January 8, 2013 – Garrison Investment Group is pleased to announce the acquisition of a nine property portfolio totaling 1.43 million square feet of neighborhood and community shopping centers in Ohio. The seller is Kimco Realty Corporation (NYSE – KIM).
The nine properties, feature many prominent retailers such as Bed Bath & Beyond, Lowes Home Improvement, Office Depot, Kohl’s and TJ Maxx . Garrison has engaged Select Strategies Realty, headquartered in Cincinnati, Ohio, to manage and lease the properties. “We are very pleased that our performance and proven ability to close has given us another opportunity to work with Kimco,” stated Mitchell Salmon, Senior Vice President/Director for Garrison Investment Group. “While the portfolio is 90.3% occupied, we believe that we have the opportunity to create value and increase income through a very focused approach to leasing, management and strategic investment.” The acquisition increases Garrison’s retail holdings to over 7.7 million sq. ft., adding to its existing portfolio of regional malls, lifestyle centers, and neighborhood/community shopping centers across the country.
This is the third such transaction for Garrison involving dispositions from Kimco. Earlier this year, they purchased two assets from Kimco in Florida and a thirteen asset portfolio from Kimco in the fall.
Garrison Investment Group is a leading middle-market, asset-based investor headquartered in New York City. The company’s investments include corporate, financial and real estate assets. Garrison is actively pursuing the acquisition of high-quality retail properties in secondary and tertiary markets throughout the United States, and is focused on maximizing the value of these assets through securing quality tenants and investing the capital needed to rejuvenate the centers. Garrison’s skilled retail team has over 60 years of experience in shopping center acquisitions, development, leasing, and asset management.
Select Strategies Realty is a national management, leasing and development company based out of Cincinnati, Ohio. They have multiple offices in Florida, Ohio, Alabama, Georgia, Texas, North Carolina and Indiana. They manage over 7,000,000 SF of retail and lease over 8,000,000 SF of retail space. They hold brokerage licenses in the majority of states east of the Mississippi as well as across the Southwest.
Garrison Investment Group
download the PDF: Press Release GIG II