NEWPORT BEACH, CA—Competing with the 1031 market, in particular, is one of the biggest challenges due to the average price point, Patriot Equity Partners' Tim Schenk tells GlobeSt.com. As we recently reported, Schenk joined the company as SVP, responsible for directing the firm's growth initiatives, including the acquisition of single-tenant net-lease assets and further enhancing and extending Patriot's tenant and investor relationships. We spoke exclusively with Schenk about his goals in his new role and the challenges specific to acquiring and managing single-tenant retail properties in today's competitive environment.
GlobeSt.com: How will your previous experience at other companies (both institutional and private) inform your new role with Patriot Equity Partners?
Schenk: Our business is transaction focused, but at its core it is about relationships and trust. Thankfully, throughout my career, I have cultivated strong, loyal relationships because I have kept my word and followed through on my promises. Because of that, there are many sellers, brokers and tenants that are excited to continue to do business with me at Patriot.
GlobeSt.com: What are your goals in your new role?
Schenk: Patriot has established a well-respected acquisition platform and has hired me to continue growing the business in several areas. First, I will be sourcing quality single-tenant retail assets that are in strong-performing locations with sound real estate fundamentals. In addition, I will be further enhancing and extending Patriot's tenant and investor relationships. Through these actions, collectively, we will continue to create arbitrage and deliver value to Patriot's investors and partners.
GlobeSt.com: What are the challenges in acquisition and management of single-tenant retail properties today?
Schenk: One of the biggest challenges in single-tenant retail, due to the average price point, is competing with the 1031 market. 1031 buyers often are driving pricing up as they are uniquely motivated for deals given their alternative, which is paying more taxes. Another challenge is the availability of good product—well-located, below market rent, robust sales and occupied by an industry-leading tenant.
GlobeSt.com: What else should our readers know about Patriot Equity Partners?
Schenk: Patriot combines an institutional-type investment discipline with an entrepreneurial creativity to solve for problems in deals, which mitigates risk and solidifies stable returns. We are currently investing across a national platform with a focus on retailers that are outstanding operators/credits in sectors with longevity and staying power, supported by strong underlying real estate fundamentals. Patriot is actively underwriting large portfolio opportunities as well as smaller, one-property transactions. Preferred tenants include (but are not limited to) Home Depot, PetSmart, Chase, Tractor Supply, Rite Aid, CVS, Walgreens, Autozone, Sherwin Williams and Hobby Lobby.
NEWPORT BEACH, CA—Competing with the 1031 market, in particular, is one of the biggest challenges due to the average price point, Patriot Equity Partners' Tim Schenk tells GlobeSt.com. As we recently reported, Schenk joined the company as SVP, responsible for directing the firm's growth initiatives, including the acquisition of single-tenant net-lease assets and further enhancing and extending Patriot's tenant and investor relationships. We spoke exclusively with Schenk about his goals in his new role and the challenges specific to acquiring and managing single-tenant retail properties in today's competitive environment.
GlobeSt.com: How will your previous experience at other companies (both institutional and private) inform your new role with Patriot Equity Partners?
Schenk: Our business is transaction focused, but at its core it is about relationships and trust. Thankfully, throughout my career, I have cultivated strong, loyal relationships because I have kept my word and followed through on my promises. Because of that, there are many sellers, brokers and tenants that are excited to continue to do business with me at Patriot.
GlobeSt.com: What are your goals in your new role?
Schenk: Patriot has established a well-respected acquisition platform and has hired me to continue growing the business in several areas. First, I will be sourcing quality single-tenant retail assets that are in strong-performing locations with sound real estate fundamentals. In addition, I will be further enhancing and extending Patriot's tenant and investor relationships. Through these actions, collectively, we will continue to create arbitrage and deliver value to Patriot's investors and partners.
GlobeSt.com: What are the challenges in acquisition and management of single-tenant retail properties today?
Schenk: One of the biggest challenges in single-tenant retail, due to the average price point, is competing with the 1031 market. 1031 buyers often are driving pricing up as they are uniquely motivated for deals given their alternative, which is paying more taxes. Another challenge is the availability of good product—well-located, below market rent, robust sales and occupied by an industry-leading tenant.
GlobeSt.com: What else should our readers know about Patriot Equity Partners?
Schenk: Patriot combines an institutional-type investment discipline with an entrepreneurial creativity to solve for problems in deals, which mitigates risk and solidifies stable returns. We are currently investing across a national platform with a focus on retailers that are outstanding operators/credits in sectors with longevity and staying power, supported by strong underlying real estate fundamentals. Patriot is actively underwriting large portfolio opportunities as well as smaller, one-property transactions. Preferred tenants include (but are not limited to)
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