RETAIL INVESTOR SERVICES
Applying superior market analytics and years of retail financial and real estate experience including a unique ability to understand and align the interests of both retailers and landlords, Elkhorn Real Estate Partners has developed a multi-step process to identify value creation opportunities for retail real estate investors
This Process Includes:
Investment Strategy
Completion of a detailed evaluation of investment preferences, goals and objectives, and financial underwriting assumptions allows us to create a baseline from which to undertake the review process and develop a value creation plan in order to ensure business alignment. This process includes:
- Review of investment philosophy and preferences both globally and with respect to the asset under review
- Determination of important and threshold investment outcome criteria
- Evaluation of detailed financial underwriting assumptions
Anchor and Market Review
An in-depth evaluation of the current performance and market strength and position of the anchor tenant who is typically the key driver of future asset value allows us to determine where there may be opportunities for growth and investment or where future risks may reside. This process includes:
- Assessing relative performance, market strength and position, and competitive opportunities and threats
- Completion of a store review to determine operating and physical store conditions and level of past investment
- Development of a profile for the anchor retailer including a projection of future store strategy and plans
Real Estate and Lease Review
A review of the physical shopping center and anchor lease as viewed through the eyes of the anchor retailer allows us to determine where there may be opportunities to partner with the retailer to create real estate value or invest to improve shopping center and store performance. This effort includes:
- Physical review of the shopping center
- Evaluation of shopping center retail trade area position from the perspective of the anchor retailer
- Review of the anchor lease to identify risks or opportunities in light of anchor profile and projected future plans
Value Creation Plan
Based upon the evaluation completed above a plan will be delivered that will include specific value creation or risk mitigation recommendations and activities. Examples of the type of strategies include:
- Restructuring lease terms to recapitalize assets in order to favorably leverage capital markets
- Developing a co-investment plan for both the retail anchor store and shopping center asset to improve the operating performance of both
- Divesting or limiting capital spending and managing for cash flow to the extent a retail anchor may be at future risk of closure
- Creating a redevelopment plan including facilitating anchor retailer support as required
- Proactively developing a replacement plan when an anchor tenant is at risk of closure or non-renewal