LOS ANGELES—Agora Realty & Management is expanding its retail portfolio in Las Vegas. The investor has pinpointed Las Vegas as one of its key investment markets because of its strong job growth and wealth of value-add opportunities. Most recently, the firm purchased an 84,208-square-foot retail center anchored by a 99-cent store. The purchase, which cost more than $7 million, is representative of the types of investments the firm is finding in the market.
“The Las Vegas market is one of the few markets in the Western U.S. that is experiencing job growth and has a friendly business environment,” Cary Lefton, CEO of Agora Realty, tells GlobeSt.com. “The market had experienced more stress in the past, which now offers greater post-recession opportunity.”
Agora is targeting well-located retail assets in the market that have a value-add component. “Our strategy is to source well-located, stressed assets with vacancy due to obsolescence where we can make improvements,” adds Lefton. “Issues can include undersized utilities, low ceiling heights, outdated facades and signage. In addition, our financial modeling includes strong capitalization for the adaptive reuse of existing retail space to other uses such as experiential retail or service-oriented tenants. As we are a portfolio buyer, our acquisitions are strategic for long-term holding periods, hence we are sensitive to positioning, barriers to entry, and the surrounding community.”
The competition in the market is comparable to every other market, says Lefton, meaning that it is high. “As in any market, the competition is strong. However, I can't recall any year of my career where locating a quality acquisition is like looking for a 'needle in the haystack,'” he says. “Our experience and ability to move quickly helps position us well in such a market.”
Las Vegas is one of the firm's key markets, but it is also looking for opportunities in California, Texas and Arizona. This year, it plans to add five retail assets totaling $135 million to its retail portfolio.
LOS ANGELES—Agora Realty & Management is expanding its retail portfolio in Las Vegas. The investor has pinpointed Las Vegas as one of its key investment markets because of its strong job growth and wealth of value-add opportunities. Most recently, the firm purchased an 84,208-square-foot retail center anchored by a 99-cent store. The purchase, which cost more than $7 million, is representative of the types of investments the firm is finding in the market.
“The Las Vegas market is one of the few markets in the Western U.S. that is experiencing job growth and has a friendly business environment,” Cary Lefton, CEO of Agora Realty, tells GlobeSt.com. “The market had experienced more stress in the past, which now offers greater post-recession opportunity.”
Agora is targeting well-located retail assets in the market that have a value-add component. “Our strategy is to source well-located, stressed assets with vacancy due to obsolescence where we can make improvements,” adds Lefton. “Issues can include undersized utilities, low ceiling heights, outdated facades and signage. In addition, our financial modeling includes strong capitalization for the adaptive reuse of existing retail space to other uses such as experiential retail or service-oriented tenants. As we are a portfolio buyer, our acquisitions are strategic for long-term holding periods, hence we are sensitive to positioning, barriers to entry, and the surrounding community.”
The competition in the market is comparable to every other market, says Lefton, meaning that it is high. “As in any market, the competition is strong. However, I can't recall any year of my career where locating a quality acquisition is like looking for a 'needle in the haystack,'” he says. “Our experience and ability to move quickly helps position us well in such a market.”
Las Vegas is one of the firm's key markets, but it is also looking for opportunities in California, Texas and Arizona. This year, it plans to add five retail assets totaling $135 million to its retail portfolio.
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