Pacific Retail Capital Partners has proven expertise in identifying under-managed centers with strong fundamentals and acquiring them for redevelopment into higher quality properties. Our experience and relationships allow us to create visionary property transactions that deliver the utmost value and return on investment.

ACQUISITION

 

PRCP targets regional retail centers in or near major metropolitan regions, with a specific focus on regional malls and open-air lifestyle centers that have lost touch with their surrounding community. Whether a property is struggling from poor management, lack of modernization, or renovation requirements, the Acquisition team conducts a detailed, methodical financial analysis leading to a sound, metric-driven recommendation for or against property acquisition.

TRANSFORMATION

 

Once a property has been acquired, PRCP transforms each center into a destination that brings value to the community and maximizes profitability. Every consideration is taken into account for redevelopment — from enhancing visual design and adding lifestyle and entertainment elements to researching customer demographics and transforming the tenant mix. Once complete, the rebranded center is launched via a strategic marketing platform that integrates digital technologies and out-of-the box campaigns to improve customer engagement.

VALUE GROWTH

 

PRCP takes a comprehensive approach to grow a center’s value to create a property that draws customers and attracts quality buyers. Leveraging deep retail management experience, PRCP serves as a turnkey operating partner for centers to maximize cash flow and improve operational efficiencies. Sales productivity, net operating income, and foot traffic are monitored and measured, enabling ongoing improvements to be made that have attracted REITs, institutions, and high net worth individuals as buyers.

DEAL CRITERIA

SIZE

Regional Malls         750,000+ square feet
Lifestyle Centers     400,000+ square feet

PRCP will consider regional malls, downtown retail, lifestyle centers, urban and mixed-use properties $100 million+

INVESTMENT TYPE

Existing retail ranging between a core-plus and value-add investment. Regional and super-regional shopping malls are our primary focus.

LEASING

Properties must have at least 70% in-line GLA occupancy with in-line sales equal to or greater than $350 per square foot.

GEOGRAPHIC AREA

Major metro markets throughout the U.S., including Hawaii, with strong fundamentals. We consider small national markets based on quality of assets, area demographics, rent roll and strategic value to PRCP.

DEAL STRUCTURE

Most transactions are cash. Properties with existing debt in place, including low loan to value debt, are acceptable. Flexible structures to defer gains will be considered, as will unique joint venture opportunities.

MANAGEMENT

PRCP works with either national or regional third-party management companies or works to manage and lease property directly.

TARGETED RETURNS

  • 5 to 10 year hold period, depending on stabilization
  • Leveraged yield targets at 65% leverage, in mid teens
  • Equity multiple target with 2.0x’s

HALLMARKS

  • Non-bureaucratic decision-making
  • Rapid response
  • Detailed underwriting to facilitate an upfront knowledge-based purchase proposal – avoiding surprises during due diligence
  • Reliable execution