Shopping Center Business

MAY 2015

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

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280 • SHOPPING CENTER BUSINESS • MAY 2015 willingness from municipalities to think about parking ratios and stimulate new developments." An orgAnizAtionAl APProAch While Raising the Bar is an important step, the company hasn't been standing still; since July 2011 the company has renovated, expanded, renewed or re- leased major spaces at 188 properties. The fourth quarter of 2014 was the com- pany's 10th consecutive quarter of same- property net operating income growth of at least 3.5 percent. By 2018, more than half the company's portfolio will have been touched over the last seven years. Brixmor with its operating platform, is divided into three regions — North, South and West and each is headed by a regional president. The North office is in Philadelphia; South is in Atlanta; and West is in Chicago. The company has 12 regional leasing and property manage- ment offices that feed into the regional offices. It also has an accounting center in Philadelphia. "Those regional offices, plus the 12 additional offices, are where the deals are getting done and our operations are taking place," says Carroll. "From leasing to construction management to property management and legal, they are the en- gine of the company. They are working with regional, national and local tenants on a daily basis." At its corporate office in New York, Brixmor has a national accounts division that handles its larger relationships with national retailers. It does that because many large retailers are set up the same way: a head of real estate at the corporate level, with regional officers in the field. "We want our corporate person to work with their corporate person, and our regional teams to work with their regional teams," says Carroll. This approach has been successful from a strategic point of view, so that both parties are aligned on the corporate level, as well as communicating the re- tailers' wishes to the regional level and remaining in front of a retailer's strategy. As part of its continual strategy of re- viewing its portfolio, each region has a regular call with corporate staff to review its pipeline of opportunities, including leases and redevelopments. Brixmor has put a lot of thought into its systems and its executions, so that retailers have a simi- lar experience whether they are doing a deal in Southern California or Eastern Pennsylvania. "We want everyone who works with us to have the same, consistent approach and the same relationship with us," says Car- roll. "That's one of the reasons we can get deals done and help retailers open their stores faster." Carroll cites the company's consistent execution with retailers as one of the rea- sons it has gained trust with tenants and can move stores from signing to opening quickly. As a former leasing executive, Carroll would rather retailers and Brix- Growing With The Company B rixmor's executive team includes a number of seasoned retail real estate industry veterans. The majority of the leadership team have been with the company, or its predecessors, for more than 10 years. CEO Michael Carroll joined New Plan Excel Realty Trust as a leasing representative right out of college 23 years ago when the company had 75 centers. At the time, New Plan had a $1 billion market capitalization and was the largest REIT. Today, Brixmor's market capitalization is estimated at $7.7 billion. Carroll has served as CEO of Brixmor, and predecessor company Centro Properties Group U.S., since 2009. He has also served as execu- tive vice president and chief operating officer, executive vice president, real estate operations and senior vice president, director of redevelopment and had numerous jobs in leasing before that. Brixmor's leadership team also includes President and Chief Financial Officer Michael Pappagallo, who joined the company in 2013. Many in the industry know him from his 13 years as chief financial officer and chief operating officer of Kimco Realty Trust and as chief financial officer of GE Capital's commercial real estate financing unit. Dean Bernstein joined New Plan Excel Realty Trust in 1991 and today serves as Brixmor's executive vice president of acquisitions and dispositions. Brian Finnegan serves as the company's executive vice president of leasing; he joined Kramont Realty Trust, which was later acquired by New Plan, in 2004. Michael Moss has served as Brixmor's executive vice president of national accounts since 2011; he joined Kramont in 2002. The company's regional presidents, as well, have strong backgrounds in leasing and redevelopment. The president of its North region, Barry Rodenstein, came from Heritage Property Trust; the president of the South region, Mark Worley, came from New Plan; and the president of the West region, Thomas Litzler, was from New Plan as well. "We have great talent, much of which has been in place for a long time," says Carroll. Esplanade Shopping Center in Oxnard, California, is 356,800 square feet, and anchored by Nordstrom Rack, Dick's Sporting Goods, TJ Maxx, The Home Depot, Bed Bath & Beyond and Walmart Neighborhood Market.

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