Q&A: Michael Hazinski, RPAI

AUSTIN—Retail Properties of America Inc. (RPAI) recently made a big purchase with the acquisition of 181,000-square-foot Cedar Park Town Center from The Ainbinder Co. for $39.1 million. With the Austin MSA firmly part of RPAI's long-term strategic plans, GlobeSt.com's Anna Caplan recently caught up with the firm's Michael Hazinski, vice president/director of investments – West region to find out more about the deal.

GlobeSt.com: What made the property so desirable for acquisition?  

Hazinski: Cedar Park Town Center offers an outstanding mix of national and regional tenants lead by Costco, In-N-Out Burger and Chipotle.  Further, Cedar Park Town Center benefits from strong visibility and access as a result of its superior location in the trade area at the intersection of FM 1431 and Highway 183-A; a trade area that is home to over 66,000 residents with an average HH income exceeding $93,000 in a 3-mile radius.

GlobeSt.com: Do you plan to make other acquisitions in Austin? 

Hazinski: Yes, at our Investor and Analyst Day in June 2013, the company announced a 10-year strategic plan to refocus our asset base on high-quality, multi-tenant retail assets in 10 to 15 target markets across the United States, owning approximately 3 to 5 million square feet in each market.  This includes Austin as well as Atlanta, Chicago, Dallas, Houston, the New York City area, Phoenix, San Antonio, Seattle and Washington, DC-Baltimore region.

Austin is a major hub for tech, pharmaceutical and biotechnology industries; it has a strong demographic profile and relative low cost of living with a fiscal and regulator environment that is conductive to business activity and growth, so we see a lot of long-term growth potential in this area.

GlobeSt.com: Any plans to expand or make any changes to Cedar Park?  

Hazinski: We plan to complete construction of the approximately 7,700-square-foot outparcel building and we are currently negotiating with multiple retailers to occupy the remaining vacant space. 

GlobeSt.com: On the whole, how does this center fit into the Austin retail landscape?  

Hazinski: Cedar Park Town Center is in close proximity to many of the area's largest traffic generators such as Cedar Park Regional Medical Center and the Cedar Park Center; therefore, we believe it will continue to be a key destination serving Cedar Park's high-growth residential neighborhoods.

GlobeSt.com: Where is retail headed in Austin, do you think?  

Hazinski: The Austin retail market continues to be the beneficiary of dynamic job and population growth.  According to Forbes, Austin was named the fastest-growing city in the country for the past three consecutive years and was ranked as “The Best Big City for Job Growth” for each of the last two years.  This increase of jobs and wages flowing into Austin translates into higher purchasing power and consumer confidence.  This all leads to more open-to-buys for major retailers in a city that already boasts the lowest retail vacancy rate in the state.