Shopping Centers Today International

APR 2016

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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"We are focused on shadow-anchored or unanchored proper- ties," said Glazer. "That sets us apart from a lot of other retail real estate investors." The 12-person firm acquired roughly $100 million in assets its first year and has plans to keep invest- ing at about that pace for the next several years. U.S. Property Trust owns about a dozen shopping centers across the country. Tenants at these properties, which typically range from 10,000 to 50,000 square feet, include fast-casual res- taurants, dry cleaners, clothing shops, dentist's offices and nail salons. Glazer says he chose to focus on unanchored or shadow- anchored centers in part because these tend to be less risky than big-box-anchored shopping centers, espe- cially now that some big-box retailers are shutting stores. Shadow-anchored centers are adjacent to large-format retailers like Home Depot, Target and Walmart. U.S. Property Trust only acquires shop- ping centers in highly visible locations in high-income in-fill markets, Glazer says. Last year, for instance, the company bought a couple of small, road-front cen- ters in Plano, Texas, near Costco, Home Depot and Walmart stores and across the street from an upscale mall anchored by Neiman Marcus. "Corporate investors gen- erally like big-box-anchored centers because of their stable cash flow and because they are easy to operate," said Glazer. "I like the flexibility of knowing that if one or two ten- ants leave, it will not affect my earnings. There is always somebody willing to lease a small shop the size of, say, a Hallmark store, but very few merchants can take a vacant Target." Glazer also takes comfort in know- ing that restaurants, nail salons and other service-oriented tenants do not compete directly with e-commerce retailers like Amazon.com. "As much as everyone loves Amazon, I believe people still want to get out of the house and go have a meal or walk around a store," he said. "You can't get your nails done by Amazon." As the firm vies for deals in a heated ac- quisitions market, Glazer and his team are busy leveraging their reputations and con- nections in the shopping center industry. When he launched U.S. Property Trust, Glazer brought along talent from First Al- lied in addition to hiring new people. "Our strength is that people know us and have dealt with us for a long time," he said. "We have a good name in the industry, and people know that when we say we are going to do a deal, we do a deal." Glazer points with some satisfaction to his firm's ability to make same-day offers, execute contracts within 48 hours and close within 21 days or less as an all-cash buyer. It is rewarding to close a deal after a lot of hard work, Glazer says. "I come from a family business of real estate and sports," he said. "People sometimes ask me how I like real estate, and I tell them that I love sports but it is just as exciting to have a clos- ing as it is to score a touchdown or win a game." S C T A p r i l 2 0 1 6 / S C T 59 #RECon16 We know you attend RECon to network with over 36,000 attendees, participate in education sessions to enhance your professional development, and meet with over 1,000 exhibitors to make deals. We also know you're wondering who this year's keynote speakers are. Visit www.icscrecon.org for more information. Register by April 29 to receive the advance rate. May 22 – 25, 2016 I Las Vegas, NV Las Vegas Convention Center & Westgate Hotel Parag Khanna Factotum, Hybrid Reality Tony Hsieh Zappos Earvin "Magic" Johnson Magic Johnson Enterprises SU DAY M DAY TUESDAY Gary Friedman Restoration Hardware Bobbi Brown Bobbi Brown Cosmetics OP I SESSIO KEY OTE

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