Shopping Center Business is the leading monthly business magazine for the retail real estate industry.
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INSTITUTIONAL INVESTORS 112 • SHOPPING CENTER BUSINESS • December 2016 S hopping Center Business recently moderated a roundtable of institu- tional investors in retail properties, which was hosted by Whitney Knoll and John Crossman of Crossman & Compa- ny at ICSC's headquarters in New York. More than a dozen firms attended, from smaller, family office investors to large REITs and asset managers. In attendance were Barry Carty, Federal Realty Invest- ment Trust; Ross Cooper, Kimco Realty; Joe Dykstra, Westwood Financial; Tom Falatko, VEREIT; David Harvey, Fair- bourn Properties; George Fryer, AEW; Lauren Holden, Clarion Partners; Joel Murphy, NewMarket Properties; Laura Nguyen and Jon Wheeler, Wheeler Real Estate Investment Trust; John Ragland, TH Real Estate; Steven Vittorio, PGIM Real Estate; and Ed Senenman, The Ster- ling Organization. SCB: Can you give a quick overview of your company and your recently activity? Tom Falatko: I am Tom Falatko with VEREIT. We are a publicly traded net lease REIT. We have $16.1 billion total book value and about 4,200 properties. We manage another $7 billion on behalf of Cole Capital which sponsors a non-list- ed REIT. Joe Dykstra: Joe Dykstra with Westwood Financial. We have recently completed a reorganization where we rolled up and consolidated 271 partnerships that own 75 properties. We monetized and inter- nalized our management company and formed a company which will operate much like a private REIT that has a market value of about $1.2 billion. We also man- age 42 properties for affiliated partner- ships. We own grocery-anchored necessi- ty retail; we have more than 1,100 tenants in 26 MSAs. We will likely sell more than $400 million properties over the next few years and redeploy that capital into simi- lar assets on the West Coast, in Colorado, Texas, Arizona and the Southeast. David Harvey: David Harvey. I am with a new company called Fairbourn Prop- erties. We are the real estate investment arm of a private family office. Since we are new, we have not acquired anything yet but we do have quite a bit under con- tract. We are seeking to acquire about $400 million in assets by the end of the year. We have about $1.7 billion under management. Ed Senenman: Ed Senenman with The Sterling Organization. We are a private equity investor. We have a value-add fund and a stabilized fund. We own about 40 properties. We have raised $500 million for both funds. We have about $400 mil- lion to deploy. Barry Carty: Barry Carty. I am respon- sible for acquisitions for Federal Realty Investment Trust on the East Coast. Fed- eral Realty has been around since 1962. We are one of the largest shopping cen- ter REITs; we own about 100 properties around the country, significantly concen- trated in Washington, D.C., with others in Northern and Southern California, Phila- delphia, Boston, South Florida and New York. We are valued at about $13 billion. We are selective with our acquisitions. We buy only in major markets and properties that have scale and re-leasing potential. Laura Nguyen: Laura Nguyen, director of capital markets for Wheeler Real Estate Investment Trust. We own 66 properties, mainly grocery-anchored shopping cen- ters, about 3.8 million of GLA. Steven Vittorio: Steve Vittorio with PGIM Real Estate, formerly Prudential Real Estate Investors. We have about $65 billion in equity real estate assets under management globally. About $14 billion of that is retail. In the U.S., we have about $45 billion in real estate holdings, with a little over $8 billion being retail holdings. Ross Cooper: Ross Cooper with Kimco Realty. This year, we were net sellers, but next year we look forward to being a net acquirer again. We have acquired about $450 million so far in 2016 in the U.S. We have sold close to $1 billion this year; Investors Seek Stability, Value Creation Institutional investors are bullish on retail, ready for market challenges and seek to create value for their stakeholders. Roundtable moderated by Randall Shearin From left, Steven Vittorio, PGIM Real Estate; Ross Cooper, Kimco Realty; Lauren Holden, Clarion Partners; Jon Wheeler, Wheeler Real Estate Investment Trust; Joel Murphy, NewMarket Properties; and John Ragland, TH Real Estate.