Shopping Center Spree
RCG Ventures is going shopping with a fat wallet: $400M. (Imagine the toys you could've bought with that kind of allowance.)
Above is Regal Cinema's Snellville Oaks in Atlanta, which it recently snapped up. The firm just raised more than $100M from private investors in a new fund that, when leveraged, will acquire four times that in retail properties across the country, says CEO Mike McMillan. RCG is particularly looking for value-add shopping centers. "We are typically looking for anchored real estate or real estate that can be re-anchored," he says. "The common denominator is we believe there is something we can do to add value to the asset."
Investments have taken RCG across the country—it just picked up deals in Queensbury, NY and the Shakopee Retail Center in Minnesota, a 103k SF retail center anchored by a Lutheran church to Mays Crossing, a Big Lots anchored center in Stockbridge this past May (above). It's in the midst of buying in Michigan, and he says the firm chooses based on what it believes the submarket can draw. Mike says you will often find it buying centers near Walmarts or Targets, which tend to be the retail hubs.