POUGHKEEPSIE, New York, – March 4, 2015 – (RealEstateRama) — American Realty Advisors, an institutional real estate investment manager with approximately $6.7 billion in assets under management, has acquired the Shoppes at South Hills, a grocery-anchored retail power center in Poughkeepsie, New York. This asset was acquired in a joint venture with DLC Management Corporation, a privately-held, vertically-integrated owner, operator, and manager of shopping centers throughout the United States.
According to Stanley Iezman, Chairman and CEO of American Realty Advisors, this asset is among one of 153 assets American Realty Advisors currently owns and operates throughout the U.S. on behalf of its investors.
“American Realty Advisors continues to acquire well-located industrial, office, retail, and multifamily real estate assets in target markets,” says Iezman. “We utilize our strength in asset management to identify, source and acquire properties that provide for the opportunity to create value, maximizing yields on behalf of our investors.”
The Shoppes at South Hills is currently 86 percent occupied and located along Route 9 within a top regional shopping destination in Poughkeepsie.
Iezman notes that while the area surrounding Route 9 draws consumers from an unusually large radius of 20 to 30 miles, there is limited big box space available for retailers seeking to expand within the region.
“Based on the asset’s desirable location and the limited big box space available in the market, American Realty Advisors can take this asset, which already has strong current returns, and market the existing 70,000 square feet of vacant space to attract new tenants, increasing the value of the asset for our institutional investors,” Iezman explains.
“With regard to longer-term strategy, the property has another 50,000 square feet of pre-approved development rights for construction of new retail space, on which American Realty Advisors will pursue build-to-suit or land leases,” he adds. “The additional opportunity here positions this asset for long-term stabilized growth, which is consistent with our overall investment strategy to acquire both core and value-add assets in well-located, supply-constrained markets.”
The retail center is anchored by ShopRite, a top grocer within the region, as well as Burlington Coat Factory, Kmart, and Hobby Lobby. The property is adjacent to the Poughkeepsie Galleria Mall.
Prior to American Realty Advisors and DLC Management’s acquisition, the 518,000 square-foot property was converted from an enclosed mall to an open-air center and fully remodeled to meet all Class A specifications.
The Shoppes at South Hills is located at 1895 South Road (Route 9), Poughkeepsie, New York. American Realty Advisors and DLC Management represented themselves in the acquisition. The seller was represented by Jose Cruz and Kevin O’Hearn of HFF.
With approximately $6.7 billion in assets under management, American Realty Advisors is an investment manager to institutional investors, and has provided real estate investment management services for over 26 years utilizing core and value-added commingled funds and separate accounts. American acquires assets directly or provides equity, preferred equity, mezzanine debt, debt and hybrid debt to primary investors and developers operating throughout the United States for office, industrial, multi-family, and retail properties. More information regarding American can be found at www.americanreal.com.
Lexi Astfalk / Jenn Quader
Brower, Miller & Cole
LAstfalk (at) browermillercole (dot) com