ShopOne, a National Grocery-Anchored Shopping Center REIT, Launches with 46 Assets in Eight States
NEW YORK (October 1, 2017) ShopOne Centers REIT Inc. (ShopOne) today announced the formation and launch of its new platform, a private real estate investment trust (REIT) focused on acquiring, operating and managing market-dominant, grocery-anchored shopping centers. ShopOne is led by retail real estate veteran Michael Carroll, Chief Executive Officer, who will be assembling an executive team. The company comes to market with a high-quality, geographically diverse portfolio. ShopOne and its affiliates own and/or manage 46 shopping centers in eight states with more than 4.65 million square feet of gross leasable area, the majority of which were acquired from Devonshire REIT, Inc. The majority of equity of ShopOne is owned by funds affiliated with Davidson Kempner Capital Management LP.
ShopOne is focused on building an institutional caliber company supported by a best-in-class operating platform and systems. ShopOne aims to purchase well-located shopping centers in densely populated, fundamentally strong markets across the country. The company is looking to take advantage of dislocation in the retail marketplace to acquire assets at attractive valuations to replacement cost and enhance net asset value through operational and capital improvements. ShopOne enjoys longstanding relationships with many of the nation’s leading necessity-based retailers, financial institutions and commercial real estate brokerages, which support its long-term strategy to build a portfolio of scale that is capable of producing consistent and sustainable cash flow growth.
“We believe strongly in the long-term fundamentals supporting continued investment in shopping centers anchored by top-performing grocers, leading discounters and off-price apparel retailers,” said Mr. Carroll. “We intend to be very active in the market as we seek to grow our portfolio and gain scale in high-density, in-fill metro areas. With a proven operating platform, deep institutional knowledge of the dynamic retail landscape and an extensive professional network, we are well-positioned to carry out our business objectives.”
Despite the challenges facing the broader retail industry, necessity-based retailers such as grocery stores, restaurants and fitness centers continue to perform well. New development continues to be at historically low levels and the retail sector continues to experience high occupancy, creating demand and opportunity for well-located retail centers to accommodate new tenants through repositioning and redevelopment.. ShopOne intends to capitalize on this favorable supply/demand dynamic through strategic acquisitions and by pursuing value-enhancing redevelopment and leasing initiatives.
In line with its growth strategy, ShopOne recently acquired Conyers Commons, a 118,420 square foot shopping center located in Conyers, Georgia. The center is anchored by Target and is ideally situated on the major thoroughfare of the trade area. National tenants within the center include Ross Dress for Less, Kirkland’s, Mattress Firm, FedEx Office, and Panda Express.
Mr. Carroll has more than 25 years of retail real estate experience and has overseen more than $1 billion in repositioning and redevelopment projects. Prior to joining ShopOne, Mr. Carroll served as Chief Executive Officer of Brixmor Property Group (Brixmor), one of the country’s largest owners and operators of open-air shopping centers. During his tenure at Brixmor, Mr. Carroll spearheaded the company’s IPO and rebranding from Centro Properties Group U.S. (Centro) in 2011, where he helped grow its enterprise value to over $14 billion. Prior to this, Mr. Carroll held several prominent positions at New Plan Excel Realty Trust, Inc., (New Plan) including Executive Vice President, Real Estate Operations. New Plan was acquired by Centro where Mr. Carroll was Chief Executive Officer of the US platform. Mr. Carroll, who holds his Master of Business Administration from the University of Toledo and his Bachelor of Science in Business Administration from Bowling Green State University (BGSU), is a member of the International Council of Shopping Centers and the Urban Land Institute. He is a past Director of the Bowling Green State University Foundation Board and has endowed a scholarship at BGSU for business majors.
ShopOne Centers REIT Inc. is a private real estate investment trust that is focused on acquiring, operating and managing market-dominant, grocery-anchored shopping centers in densely populated, fundamentally strong markets across the country. ShopOne and its affiliates own and/or manage 46 shopping centers in eight states with more than 4.65 million square feet of gross leasable area. Many of the nation’s leading necessity-based retailers including Kroger, Target, and TJX call ShopOne’s properties home. To learn more about ShopOne, please visit www.ShopOne.com.
Davidson Kempner Capital Management LP is a US-based, SEC-registered alternative asset manager with over 30 years of experience, currently managing assets in low volatility, multi-strategy and event-driven strategies with a focus on fundamental investing in distressed and merger arbitrage. Davidson Kempner has over $29 billion in assets under management with over 290 professionals in four affiliated offices (New York, London, Hong Kong and Dublin) and a team of dedicated real estate investment professionals.
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