Malls.

The time to invest & capitalize is now.

How SREG’s Industry-leading Investment & Operating Platform is positioned to capitalize on a historic mall opportunity

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The reality.

Many retailers have adapted and thrived in the face of changing consumer behavior and technology.

Foot traffic and sales still up

  • 2022 – Sales Up 10.7% over 2019

National Retail Federation forecasts retail sales growth between 4%-6% in 2023

Placer.ai shows 2022 indoor mall traffic 5.5% above 2021, higher than Open-Air Lifestyle Centers, Outlet Malls and Grocery-Anchored Shopping Centers

Retailers focused on brick and mortar

Today’s Reality

  • RNew Store Openings Increased by 20%

    2021, JLL

  • R52% of Consumers prefer to shop in-store vs online

    National Retail Federation

  • R76% of Retailers Plan to Open New Stores

    2022, National Retail Federation

As Kevin Johnson, CEO of Starbucks, stated, ‘The margins are significantly lower in the online business, particularly when you factor in the cost of delivery and returns.’

“The Future of Retail Isn’t Direct-to-Consumer. How Brands Are Embracing Stores in 2023. Businesses that once thrived on e-commerce only are stepping into physical retail to keep shoppers loyal”

DTC Brands Shift to Physical Stores

As the digital space becomes crowded and online advertising expensive and noisy, DTC brands continue to invest in physical stores to drive customer growth.

Examples include

The DTC Reckoning Is Coming for Fashion!

Mounting digital marketing costs and e-commerce readjustments have put the viability of pure direct-to-consumer business models into question. The State of Fashion 2023 reveals that most brands will need to diversify their channel mix beyond DTC to generate growth.

Sales are up.
Mall traffic is up.
Retail focused on physical.
DTC opening stores.

We’re in a Once in a Lifetime Opportunity

Investing in malls presents a once-in-a-lifetime opportunity to capitalize on high-quality assets that were previously inaccessible to investors. With the current economic climate, these assets are now available at their lowest values.

Historic Low Valuations

According to recent market data, enclosed mall property valuations are at a historic low. In the third quarter of 2021, mall valuations were down by 47% compared to the same period in 2016. However, for investors, this presents a unique opportunity to acquire these assets at a discounted rate and capitalize on their potential for redevelopment and repositioning.

Rise of Interest Rates

According to recent data, retail real estate is the only asset class to show positive leverage as interest rates rise. In contrast, other types of real estate, such as apartments and offices, typically experience negative leverage in rising interest rate environments. This makes retail real estate an attractive investment opportunity, particularly as property valuations in the enclosed mall sector are currently at historic lows.

Artificially depressed NOIs

Enclosed mall net operating income is currently artificially depressed due to the COVID-19 pandemic. Some retailers closed their stores as a result of the pandemic (mom/pop retailers, serviced based concepts like nail and hair solons and others), and the spaces they occupied have yet to be released by disinterested borrowers who are not allocating time or resources to these distressed assets.

Disinterested Borrowers

The REIT’s have become disinterested in as much as 80% of their portfolios, focusing only on their top tier assets. This creates the potential for strategic acquisitions of underperforming malls and the ability to turn them around with targeted investments and improvements.

Untapped Land Value in Prime Locations

According to a recent report by the International Council of Shopping Centers, the average size of a regional mall site in the United States is approximately 48 acres. This presents a significant opportunity for investors looking for large sites with untapped land value, especially those located in prime locations within their respective markets. These sites have the potential to be redeveloped or repositioned to unlock additional value and generate attractive returns for investors.

How can SREG make the opportunity a reality?

We’re the nations’ Premier Turn-key Investment and Operating Platform

Our broad team of experts offers unparalleled knowledge, services and resources that can help investors excel in the retail real estate market. 

★ ★ ★ ★ ★

SREG’s Proprietary, Industry-Leading Platform Overview

Investment & Analysis Platform

SPINOSO INVESTMENT STRATEGY ™

SREG’s proprietary Investment & Growth platform that enables us to select winners and maximize their potential.

1. Opportunity Identification – Utilizing SREG’s proprietary pipeline, we identify unique opportunities for investing in malls before they hit the market.
2. Asset Due Diligence – Our team conducts a comprehensive analysis of the market, asset, competition, and financials to ensure sound investment decisions
3. Evaluation – With decades of experience and industry expertise, we have the ability to discern the winners from the losers in the enclosed mall market.
4. Acquisition/Negotiation – We use our deep industry knowledge to negotiate the best possible terms for acquiring properties, maximizing value for our investors.
5. Implementation – SREG leverages its best-in-class operating platform to implement the business plan and achieve optimal returns on investment.
6. Disposition/Refinance – When the time is right, we execute our exit strategy by either selling the asset for maximum value or refinancing it to achieve the best possible returns.

Opportunity Identification & Evaluation

We have a proprietary pipeline of mall investment opportunities that we have accumulated through years of experience and relationships in the industry. Our team has access to both broadly marketed and off-market transactions, giving us a unique advantage in identifying investment opportunities. 

We evaluate an asset by looking at 10,000+ datapoints consisting of a market, asset, competition and financial analysis.  SREG’s comprehensive, 300+ page report enables us to evaluate an asset to determine winners and losers.

Opportunity Due Diligence

We evaluate countless segments and data points to help inform our Asset Grading & Evaluation.

Sample Investment & Analysis Data Points include:

Demo & Psychographics

In depth market & demographic analysis

Existing Tenant Analysis

Tenant by Tenant analysis and forecast of existing rent roll based of decades of deal experience and current deal flow of vast portfolio across the country

Operating Expense Efficiency Analysis

Existing Anchor Analysis

Lease Up Analysis

Detailed lease up analysis of new prospective Tenants and target spaces

Investment & Return Analysis

Detailed roll up of investment summary & returns

Market Profile Analysis

Development Potential Analysis

Competition Analysis

Detailed primary and secondary competitive set analysis

Future CAPEX or renovation analysis

Cell phone capture data detailed analysis

Discernment to identify High Performing Assets and Underperforming Assets

Our proprietary detailed analysis and evaluation, combined with our historical and institutional knowledge of almost every mall in the country, gives us a distinct advantage in identifying the winners and losers in the enclosed mall industry. With this expertise, we can confidently invest in high-quality assets that have never been available before, at a time when they are undervalued, ensuring a once-in-a-lifetime opportunity for our investors.

★★★★★

“Thank you so much for your time yesterday. Please convey our sincerest appreciation to the team. It was reassuring to hear many of our conclusions are mutual. I really liked the stress test, the thought you all put into evaluating the tenants rolling, and the analysis of the land value. The color provided on property X was very helpful.”

Private Equity Firm

★★★★★

“I spent some time going through these materials and reviewing my notes from our call. Bottom line, I understand why you are so intrigued by it and the potential to take advantage of the illiquidity in the market.”

David F

Director of Finance

★★★★★

“We went through the deal and work you provided, first off great work/presentation!”

Mike B

Director of Asset Management

★★★★★

“Thanks for sending this over. The underwriting on X is well laid out and very helpful to see”

James W

Director of Finance

Informed to Make Smart Investments

And discern High Performing Assets and Underperforming Assets

SREG’s platform-generated report consists of a comprehensive, human-ai hybrid, 300+ page analysis of an asset

Equipped to Maximize Investments

And reach the Asset’s fullest potential

SREG offers a full suite of services to provide a comprehensive solution for enclosed shopping malls. From property management to leasing and development, our team of experts delivers customized strategies to enhance the value of each property and maximize returns for our partners and clients.

  • NFull-service Property Management
  • NAsset Management
  • NDevelopment / Redevelopment
  • NBest-in-class Leasing
  • NProperty Marketing
  • NConstruction Management
  • NTenant Coordination
  • NLease Administration
  • NProperty Accounting
  • NReceivership

Mall DNA & Experienced Team

At Spinoso Real Estate Group, we pride ourselves on being enclosed mall professionals with decades of experience, not just real estate professionals jumping into the mall space because of the current opportunity. Our team includes experts in all aspects of enclosed mall operations and management, including leasing, marketing, tenant relations, and financial management.

With our extensive experience in this highly complex asset class, we are uniquely qualified to handle the challenges and complexities of managing enclosed malls, ensuring optimal performance and profitability for our clients.

Proven Track Record

Spinoso Real Estate Group has a proven track record of successfully operating over 80 malls in its company history with many examples across its Senior Leaderships prior experience. Spinoso Real Estate has replaced almost every other mall operator on projects and has never been replaced.

Our latest case study of our work on Santa Fe Place in Santa Fe, NM is a great example of our operating platform’s capabilities, and how we increased NOI by 429%, Sales 129%, and Occupancy by 223%.

35

Years of Experience

88

Properties Since 2010
1

75.4

Million Sq. Ft.

Partner with spinoso

Investment & Solution Opportunities

Option #1

Investment

At Spinoso Real Estate Group, we help commercial real estate investors identify exceptional investment opportunities in enclosed malls.

Our team of experts will analyze and underwrite these assets, acquire them, and operate them to achieve outsized risk adjusted returns not found in any other asset class. Let us help you maximize your returns with our expertise and resources.

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Option #2

3rd Party Operations

At Spinoso Real Estate Group, we understand the complexities of operating and maximizing the value of enclosed malls and large-scale retail properties. If you own an enclosed mall or large-scale retail property, our third-party operating platform can add exceptional value through our proven expertise, customized strategies, and innovative technologies.

We offer a full suite of operating services that can help you unlock the full potential of your asset and drive long-term success.

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Contact

  • How SREG increased NOI by 429%, Sales 129% and Occupancy by 233%

Mall and Retail Headlines

Mall investment indicators

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