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Retail T.V is brought to you by founding sponsor Faris Lee Investments the largest retail
investment advisory firm in the nation.
TNV in three businesses including third party property management,
advisory for high net worth individuals, and small institutions who are looking
for value add real estate, and the receivership business.
The firm is bullish on retail having bought and sold over one hundred retail
properties in the last fifteen years. Here Tony Thomson talks about what they
look for in retail today.
Today we have twenty retail properties that we
own in a recall
called SRT
but with the rest entree to read about two point three million square
feet.
It's been approximately 88% percent occupied in
twelve states. We buy primarily in Florida,
Texas, Nevada, California, Arizona.
An example of what we like to buy on the value add side in addition to
core and core plus was to be uh...
to prop is come to mind. So one would be in the northwest part of town,
we bought this directly from a receiver,
couple of years ago. We liked it because
number one it had been on the market for 38 million dollars
We acquired it from the lender for 12.8 million dollars.
It was a very low price per square foot, under a hundred dollars per square foot
for a center that's basically four years old.
It was about seventy percent occupied at had some additional land
that came with it for future development and it had uh... three op parcels
a Carl's Jr. fast-food, a Popeyes chicken fast food,
and also a 7-11.
So at the end the day it was our classic value add opportunity
buy below low replacement cost,
buy in the path of growth,
and buy with some kind of value add component.
This one had
3 value add components attached to it, it had a vacancy,
land that was fully improved,
already entitled
ready to go to a build a suit a grand lease or just to sell to a user.
And the third is that had, it was in the path of growth... right across the street
was a uh...
public golf course that had been closed
was being developed into the largest
public park
in Las Vegas.
We love retail you know it's so exciting a combination of creativity and
just facts and figures
and the economy but
at the end of the day what's important retail
is of course like in the real estate is location.
But uh... driving right along side of that would be your your tenant next year
anchor your demographics, your crime rate and
all those traffic studies and all those things... but you gotta buy in the path of growth
and that's why we like the states Florida, Texas, California,
Nevada, because they have low income tax rates they have
great climate,
and have great educational systems and those populations are growing and therefore
jobs are growing.
Finance it of course is much easier today than it was 3 or 4 years
ago but it's not quite as is easy and we hope in some ways does becomes easy in
uh... money flowing
too fast... too easy like it happened in 2004 to
2006.
Rates are very attractive today but
other than the CMBS market in selected insurance company it's still very
difficult for
big banks and small banks in regional banks to
the lend because of over-regulation and because of the hangover of some of their
past sins in the
let of lending of the big boom.
At the end of the day that challenge in financing is uh...
reasonable
you sometimes have to accept more
loan to value sometimes have to accept
uh... terms that uh... might engage some recourse on behalf of borrow.
But we're in much better condition than of course two or three years ago.
Signature says surround yourself with very talented,
honest, and hardworking people and let 'em do what they do best.
Retail T.V. has brought to you by founding sponsor Faris Lee Investments,
the largest retail investment advisory firm in the nation.