“Opportunistic Retail” - Sophisticated investors refuse to be fooled by the news and the naysayers. As we move into a new economic cycle and a flight to safety mentality drives asset class rotation, opportunistic retail investments abound. In today’s post I’ll share my thoughts on why opportunistic retail is where the smart money is being invested…
You’re probably wondering “Bo, what are you thinking…Opportunistic Retail?” Nary a day goes by when we don’t hear about poor retail earnings, store closures, and bankruptcy filings associated with name brand retail chains. The largest retail REIT in the market General Growth Properties (GGP) has been arm-wrestling with lenders negotiating loan extensions to remain solvent, so why am I recommending retail investments? If you’ve read my recent white paper you’ll know that I believe that adversity creates opportunity, and nowhere is this more true than in the retail asset class.
Savvy investors are now beginning to feed off the gluttony of investors who bought into the retail space at the top of the market by paying unprecedented premiums on buy-side cap rates. Think about all the properties ripe for repositioning and big NOI lifts that were completely unattainable for the average investor only a matter of months ago. Bottom line…If you’re interested in buying into the market as it turns upward now is the time to act.
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