With more than $700 million in capital in its coffers to spend, privately-held retail real estate company DLC Management Corp. has just made its first purchase of the year, acquiring Skytop Pavilion, a grocery-anchored shopping center in Cincinnati. DLC president & CEO Adam Ifshin told CPN today he could not release the price or the name of the institutional seller because of a confidentiality agreement. DLC, based in Tarrytown, N.Y., acquired the shopping center after three other buyers couldn\u2019t complete the deal. Ifshin said DLC initially passed on the deal because the seller wouldn\u2019t meet its price. \u201cThey finally came around and said ‘we need someone we know who will close this deal,\u201d he said. Bigg\u2019s Supermarket, a division of Supervalu, anchors the 133,600-square-foot center and leases more than half the space. Skytop Pavilion is the only grocery-anchored shopping center in the immediate area which has a three-mile radius population of over 48,000 and an average household income higher than $84,000, according to DLC. Daniel Taub, executive vice president & COO, said that Bigg\u2019s has a long-term lease and strong sales performance, two things that attracted DLC to the shopping center. He also noted that Bigg\u2019s recently spent several million dollars renovating the store. Ifshin said DLC, which leases a portfolio of 96 shopping centers with more than 16.5 million square feet in 25 states, now more than ever is focusing on \u201cbread and butter\u201d acquisitions. He said of the 31 acquisitions made in 18 months, 27 of them were grocery-anchored centers. Grocery chains like Krogers, Food Lion, Giant, ShopRite and Price Chopper are among the company\u2019s biggest clients. Ifshin said DLC focuses on other value-oriented retailers like the TJX Cos., parent of TJMaxx, Marshalls, HomeGoods and AJWright; Ross Stores; and dollar stores such as Dollar Tree, Family Dollar and Dollar General. Other companies they have been signing leasing deals with included value-oriented fitness centers including Planet Fitness and LA Fitness, which tend to be smaller and charge less than other larger gyms, he said. \u201cA lot of our focus–and part of that has to do with the demographics we own in particular–is all about value and necessity retail,\u201d Ifshin said. \u201cWe\u2019re actually doing OK because we\u2019re not overly exposed to fashion and women\u2019s apparel.\u201d Ifshin said DLC is planning to invest more this year in construction loan debt and permanent loan distressed debt secured by retail assets. \u201cWe\u2019ve been doing it all along. There wasn\u2019t any of it around to do in the last few years,\u201d he said. \u201cThis year we may do as many debt deals as equity deals. It\u2019s all about whether or not there\u2019s an opportunity.\u201d Noting that the \u201csilly money is out of the market\u201d now, Ifshin said prices are starting to drop. \u201cThe Australians and the TIC guys are out of the market,\u201d he noted. \u201cThat has created some price realizations.\u201d Referring to the story by Kris Hudson in Thursday\u2019s Wall Street Journal about stalled or unleased lifestyle malls, Ifshin said he wasn\u2019t surprised and that his company had been approached but passed on those kind of projects as well as large, mixed-use developments. \u201cWe\u2019ve been saying for years that a tremendous number of these lifestyle deals that were getting done made no sense. They were not viable. There were not enough demographics to support them,\u201d Ifshin said.<\/p>\n","protected":false},"excerpt":{"rendered":"
With more than $700 million in capital in its coffers to spend, privately-held retail real estate company DLC Management Corp. has just made its first purchase of the year, acquiring Skytop Pavilion, a grocery-anchored shopping center in Cincinnati. DLC president & CEO Adam Ifshin told CPN today he could not release the price or the…<\/p>\n","protected":false},"author":1314,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37301],"tags":[],"class_list":["post-1003829341","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n