Pacific Retail Capital Partners (“PRCP” or the “Company”), one of the nation’s leading retail real estate development, investment, management and advisory firms focused exclusively on evolving retail-led real estate, today provided a recap of its business activities in 2023.
Bolstering In-house Capabilities to Create Efficiency in Design and Development
PRCP’s holistic strategy centers on combining the strengths of its full suite of in-house capabilities – development, leasing, management, investment, consulting, and marketing – to transform underutilized enclosed and open-air shopping centers into high-performing, master-planned, mixed-use destinations. In conjunction with the headquartering transition from El Segundo to Century City in early 2023, PRCP also launched an Architectural Design Studio, led by former Gensler Partner Annmarie Plenge, along with three additional Gensler alumni.
This new vertical empowers PRCP to enhance the speed with which its master-planned projects progress from conceptualization to construction. In-house design capability enables closer collaboration with community leaders during the conceptualization and planning stages. This ensures that PRCP delivers retail-led, mixed-use destinations, aligned with each market's unique needs, adding sustained value to the trade area.
The Architectural Design team has spearheaded the design and master planning of two transformational projects: District Galleria in White Plains, N.Y., and the revitalization of the former Carson’s anchor box at Yorktown in Chicago. Cumulatively valued at more than $2.25 billion, these two projects will transform the retail and lifestyle landscape in their respective communities. These developments are active proof of PRCP’s ability to unencumber complex assets and enable a complete transformation to the benefit of the community.
At District Galleria, the Company is currently working with the City of White Plains on their master plan for the asset, which will result in the former enclosed mall being torn down to make way for a visionary mixed-use sustainable development spanning multiple city blocks. The future of the property will be home to seven residential towers of varied heights with up to 3,200 apartments – of which 12 percent will be affordable, a quarter mile long green promenade with pocket parks and ample green spaces. The project is a joint venture between PRCP, the Cappelli Organization, SL Green Realty Corporation and Aareal Bank.
At Yorktown, PRCP secured all necessary approvals to move forward with its master plan which will result in more than 600 residential units and an over 1-acre park area. Construction will begin this month.
Opportunistic Acquisitions Add Scale to Portfolio
PRCP’s acquisition strategy prioritizes targeting enclosed shopping malls and lifestyle centers with unrealized potential in fundamentally strong markets, acquiring them on an attractive basis. In 2023, the Company entered two new markets and added more than 2 million square feet to its portfolio, through the acquisitions of The Shops at Palm Desert in Palm Desert, Calif., and Bridgewater Commons in Bridgewater, N.J.
These acquisitions, totaling over $425 million, showcase the Company’s ability to navigate and capitalize on market distress through its capital markets capabilities. By injecting its own capital into these acquisitions, PRCP will be able to assert its proven value-add strategy to reinvigorate these assets and evolve them for the next generation. Opportunistic acquisitions will remain a tenet of the Company’s investment activity in 2024.
Mixed-Use & Office Sector Expansion
PRCP expanded its asset management responsibilities into the Office sector in 2023. Capitalizing on the firms vertically integrated, multi-disciplinary approach to creating value and seeking creative solutions to retail assets, it is now leveraging this creativity into the office sector. PRCP is responsible for the asset management of 220 Post and 146 Geary in San Francisco, as well Metropolitan Tower, an 18-story, 288,000 square-foot office tower in New York City, located in the heart of midtown Manhattan on 57th Street. Responsibilities include the oversight of property management, improvement of operational efficiencies, maximization of NOI, corporate governance, audit review/management and financial reporting.
Best-in-Class Leasing and Management Platform
A cornerstone of PRCP’s 2023 success lies in its exceptional leasing team, comprised of industry professionals who have honed their skills at blue-chip retail firms like Westfield, Vornado, Brookfield and Simon. In 2023, the Company signed nearly 2.8 million square feet of new leases, surpassing the 2.5 million square feet achieved in 2022. The agreements, which include a combination of new leases and renewals, reflect the value established and emerging retailers find in becoming part of PRCP’s diverse tenant mix.
PRCP’s leasing platform plays a dynamic role in its overall master planning capabilities. The Company’s thoughtful approach to property layout, amenities and responsiveness to community demand pave the way for attractive leasing opportunities that engage customers throughout their property experience. PRCP balances leasing demand by maintaining relationships with big-box retailers, and employing local teams in their operating communities who can keep a pulse on emerging trends and vendors. This localized approach ensures that PRCP’s malls and lifestyle centers remain vibrant and attractive hubs, and a popular choice for brands of all types.
In addition to a record year of leasing activity, PRCP assumed the leasing and management responsibilities at Park Place Mall in Tucson, Ariz. This 1.1 million square foot mall is the dominant retail center in the Tucson market, and represents PRCP’s operational expansion into Arizona.
Continued Marketing Excellence and Property Support
PRCP’s high-touch marketing services, spanning over 21 million square feet of retail space, are managed through their decentralized marketing platform. Anticipating and responding to current e-commerce trends, the marketing team has spearheaded a range of award-winning strategies and innovative “online-meets-onsite integrations.”
In 2023, the team earned two MAXI Awards – the retail industry’s highest honor – for designing unique and compelling programs at three of its properties that greatly enhanced the customer experience and added value to the assets as a whole. Notably, the Gold MAXI was awarded for the KixCon event, a strategic initiative converting online “sneakerheads” into on-site traffic and sales at two PRCP properties. This event, trademarked in May 2023, will now be an annual highlight in PRCP’s calendar, having attracted over 50,000 shoppers.
Responding swiftly to the Maui wildfire outbreak, PRCP’s marketing team initiated the #ExtendAloha campaign. This dedicated effort raised awareness and funds for those impacted by the fires, a cause especially close to heart for PRCP, given its management of Queen Ka‘ahumanu Center – the largest commerce hub on Maui island. As part of the campaign, PRCP recognized affected businesses by offering three months of free rent and a stipend to aid in rebuilding efforts.
Laying the Foundation for a New Year
Commenting on last year’s business activities and looking ahead to 2024, PRCP’s Founder and CEO Steve Plenge, added: “We are very pleased with all that we accomplished despite the challenging economic backdrop, and are excited for the year ahead. We will continue to move expeditiously to evolve real estate for the next generation in 2024 to generate added value for the communities we serve and our partners. We look forward to capitalizing on the strong demand from national and local retailers that are looking to broaden their physical footprints and be part of dynamic mixed-use destinations like the ones we are creating.”
About Pacific Retail Capital Partners
Pacific Retail Capital Partners (PRCP) is one of the nation’s premier retail operating groups of large open- air and enclosed shopping centers, with more than $3.0 billion in assets under management across the United States. Based in Southern California, the company’s portfolio encompassing over 20 million square feet. With a highly experienced team that has a proven track record of generating value to its stakeholders, PRCP is dedicated to evolving real estate for the next generation by working with the communities it serves to design master plans that transform its assets into high-performing mixed-use destinations. The vertically-integrated company provides end-to-end sourcing, assessment, underwriting, valuing, developing, marketing, design and asset management services. To learn more visit pacificretail.com or follow on social media at: Facebook: @PacificRetailCapitalPartners and Instagram: @PacificRetail.
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