OVERVIEW
Northpond Retail Partners, LP
Northpond, in partnership with a prominent state pension plan, has formed a discretionary investment vehicle to acquire unanchored neighborhood shopping centers, specifically those housing convenience, necessity, and service-based retailers in trade areas with significant demand drivers (“Neighborhood Retail Strategy”).
- $200MM of discretionary equity committed
- Approximately $500MM of buying power
- All-cash buyer with a streamlined PSA, due diligence, and closing process
- Nationwide investment mandate with a focus on the Southeast and Sunbelt
northpond advantage
Market Fundamentals
- Metropolitan areas with diverse economies and positive growth fundamentals
- Trade areas with significant demand drivers (e.g. employment centers, universities, hospital systems, etc.)
- Secondary markets with >300,000 people
Initial Target Markets
- Priority MSAs: Atlanta, Charlotte, Raleigh-Durham
- Major MSAs in Southeast and Texas
- “Power 5” Conference university communities
Characteristics
Asset Selection
Property
- Post 2000 construction or renovation
- Parking, access, and visibility in line with market
- Single story only
- Spaces: smaller, general purpose; ideally 1,000 to 5,000 SF per tenant
- 4-15 tenant spaces
Tenancy
- No large anchor space or anchor dependency
- Greater than 80% occupancy with established tenant tenure
- Strong individual tenant performance
- Local, regional, or national retailers
- Focus on service, F&B, medical and fitness tenants
Financial
- Purchase price greater than $5MM
- NOI: 3% CAGR and greater than 15% cumulative over five-year hold
- Reasonably balanced income distribution among tenants
- Tenant rents below or at market
northpond advantage
Expertise
- Established retail investor with $200MM of discretionary capital to allocate
- Successful investor/operator across multiple market cycles
Security
- All-cash buyer
- No financing contingencies
Agility
- Closing in as little as 30 days
- Streamlined PSA, due diligence, and closing process
Reputation
- Proven track record of positive performance and relationships
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Get In Touch
Interested in learning more about our Neighborhood Retail Strategy? For new acquisition opportunities please contact:
Tyler Buck
Kirstey Lein
