Last Updated: December 11, 2015
InvenTrust to Keep Focus on “Smile States”
By Brian J. Rogal | Chicago
OAK BROOK, IL—The Oak Brook, IL-based form also outlines its “hub and spoke” strategy to acquire retail centers in much of the US.
Rio Pinar Plaza in Orlando
OAK BROOK, IL—InvenTrust Properties Corp. recently acquired a pair of open air retail centers in two of the top real estate markets in the US, but the deals reveal just one part of the Oak Brook, IL-based firm’s national acquisitions strategy. It acquired Rio Pinar Plaza, a 124,283 square foot shopping center located in Orlando, for about $34 million and Price Plaza, a 205,813 square foot power center located in Katy, TX, a suburb of Houston, for about $35.8 million.
“InvenTrust has what we call a “Hub and Spoke” strategy,”Michael E. Podboy, executive vice president – chief financial officer, chief investment officer of InvenTrust, tells GlobeSt.com. “Meaning, we will examine key markets and their surrounding sub-markets to invest in premium yielding open-air centers that match our investment criteria.”
For example, both Rio Pinar and Price Plaza are located within key markets, but InvenTrust has also “invested in sub-markets just outside key MSAs like The Highlands of Flower Mound outside Dallas and Westpark Shopping Center just outside the key MSA of Washington DC.”
Furthermore, company officials are also open to making investments in secondary markets, as long as these areas can show “job growth, population growth, and low-levels of new development. We are concentrating on key markets where we can display dominance, show ABR growth, and execute on our leasing and property management strategy to drive strong tenant relationships.”
Recently renovated, Rio Pinar is 100% occupied and includes a set of stable legacy tenants with significant operating history. Price Plaza is 92% occupied and its tenants include anchors Ross Dress for Less, Jo-Ann Fabrics and Best-Buy with shadow anchors that include Sam’s Club,Walmart SuperCenter and The Home Depot.
“You will also see us focus in what many refer to as the “smile states” – from Southern California through Baltimore,” Podboy adds. “Our current portfolio includes a multitude of centers in the greater Dallas and Houston markets, and we also find the Austin and San Antonio markets attractive. Denver, Raleigh, Miami and Tampa are of keen interest to us as well.”Go Back
Blue Vault is just what advisors need to size up the different offerings in the nontraded REIT market. Just as importantly, it’s what the industry needs to encourage best practices among REITs.