Shopping Center Business

MAY 2015

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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188 • SHOPPING CENTER BUSINESS • MAY 2015 We operate in both of those areas, as well as the regional mall sector. In the tradi- tional mall sector, we have been work- ing on some de-malling strategies. Those might include adding density or other uses to the center, taking advantage of the well located nature of these properties. The parking fields at malls are mostly under- utilized today. We've been looking at add- ing office or multifamily to some of those. Many projects we've dealt with have had too much small shop space, so we've de- veloped an expertise of aggregating space, creating some exterior openings. We re- ally like to change the battleship nature of malls so they are not inward focused. There are a number of new- er retailers, like Ulta, DSW, Ross Dress For Less, Nordstrom Rack, Saks Off Fifth, who are now considered mall anchors. Tenants like Forever 21 and H&M are really mini depart- ment stores. Fitness is also a use that is being added to many com- modity centers. They will take a lot of what I would consider to be difficult-to-lease space. They may not bring a customer who is on a shopping trip, but it is the same customer who shops the center. In the specialty sector, we are always looking for new concepts and new entrants to the market. SCB: Your model with management ser- vices is a little different than a pure third- party manager. Can you explain that? Hohmann: We think like an investor and owner. We have a deserved reputa- tion for taking on challenging projects that need to be repositioned. For that reason, we are often retained by new owners of projects once our investment vehicles sell their share. Last year, in two-thirds of the assets that we sold, we remained as the property manager and/or leasing repre- sentative. That is a real vote of confidence from the new owners and we love to do that. When we do that, we keep the same teams on the properties; we don't have an A team or B team. It is one company, one execution. SCB: As retail is always changing, where do you see the opportunities for Madison Marquette in the future? Hohmann: We are moving out of pure retail. Our capital investors are taking us into dense, urban markets, where a vari- ety of uses is just part of the atmosphere. We are also buying office buildings now, some without retail. In the boroughs of New York City, we have bought pure of- fice buildings. We are being led into the creative office space. Office space that is not Class A in the right market with the right transportation characteristics, can be creative office space. With the enjoyment the multifamily sector has had, we are finding more opportunities in that sector through our involvement with retail; we want to continue that. We have always been in mixed-use projects, but as a rule we were 'the retail partner' and kept to our retail piece. Now, we are getting in- volved in the entire deal. We think the right way to approach mixed-use assets is holistically. SCB The Edge is a mixed-use project Madison Marquette owns in the Williamsburg area of Brooklyn.

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