Globest.com: Besides yourself, how many people are employed at Gazit Horizons and how many are you looking to hire?

Mooallem: Right now it is just me, but we are actively seeking to hire additional people. By the end of the year we are looking to have six to 10 employees.

Globest.com: Online retail has certainly impacted a host of bricks and mortar retailers. Why don't you share your thoughts on the retail market right now and where you see opportunities for your firm?

Mooallem: Two things. I think first of all anytime a trend gets picked up and a lot of steam gets behind it on what's happening, it can get over-exaggerated and sometimes good retail sites can get lumped in with a lot of bad retail sites. There are a lot of bad retail sites in this country, but there are also a lot of good ones that could be acquired at a more attractive price now that the news is what the news is. Everything is cyclical in this business.

The second thing I would say is that there is a certain skill set involved in re-inventing a retail asset that when it is done well, retail can become not just a place for big box convenience shopping, but a place for people to gather for entertainment and for services that are not available on the Internet. So we don't think retail is dead. We think retail is changing and we want to be on the beginning of the changing curve and not on the end of it.

Globest.com: We are definitely seeing major retail properties looking to reinvent themselves, with entertainment, etc. Do you see this as a new trend that has begun to take hold?

Mooallem: Yes, it has been the trend for a while. It has happened in a lot of good properties and our belief is there is more of it that can happen. Historically retail meant building a property and then sitting around and collecting your checks once a month for the next 10 years. Now it is about curating your assets and taking care of it and spending money on it. It is definitely a harder business, but it also can be a lot more interesting.

Globest.com: You have previously stated that your firm is looking for opportunities in New York and Boston. Will you also be looking in the Carolinas and Florida?

Mooallem: I think we will definitely be looking in New York, Boston and South Florida for sure. I think we will absolutely look at some of the other smaller markets as well, should the right opportunity present itself.

Globest.com: Are you also looking at West Coast markets as well?

Mooallem: Yes, the major markets—San Francisco and Los Angeles.

Globest.com: You have stated previously that your company would possibly invest in mixed-use projects. By mixed-use, would that be residential and retail, predominantly multifamily, or are you talking about mixed-use being entertainment and retail uses?

Mooallem: All of the above. It could be a building in New York City that has retail on the ground floor and office above it or it could be a project in the suburbs in Westchester (County) or Long Island that is retail with residential. It could also be entertainment with office. Basically, we are not afraid of multiple product types in the same asset.

NEW YORK CITY—In the second of a two-part series, newly appointed Gazit Horizons Inc. president and CEO Jeffrey Mooallem discusses exclusively with Globest.com the company's U.S. operations and his thoughts on the health of bricks and mortar retail in the United States.

In early May, Israeli real estate company Gazit-Globe Ltd. formed its new U.S. investment subsidiary Gazit Horizons, which plans to invest up to $2 billion in U.S. real estate in the next few years. In the first part of the interview, Mooallem, a former managing director at Federal Realty Investment Trust, delved into the fledgling company's investment goals going forward. In the second part, Mooallem discusses the firm's opportunities and how the overall retail sector is evolving.

Globest.com: From what I understand Gazit Horizons will be headquartered in New York and Miami. Is that correct?

Mooallem: That is correct. We will have offices in both locations. In New York we are in Midtown on Park Avenue (410 Park Ave.) and in Miami we are in Miami Gardens, which is a suburb of Miami to the north. Editor's Note: Gazit Horizons is currently exploring its options in terms of securing office space for its operations in New York City.

Globest.com: Besides yourself, how many people are employed at Gazit Horizons and how many are you looking to hire?

Mooallem: Right now it is just me, but we are actively seeking to hire additional people. By the end of the year we are looking to have six to 10 employees.

Globest.com: Online retail has certainly impacted a host of bricks and mortar retailers. Why don't you share your thoughts on the retail market right now and where you see opportunities for your firm?

Mooallem: Two things. I think first of all anytime a trend gets picked up and a lot of steam gets behind it on what's happening, it can get over-exaggerated and sometimes good retail sites can get lumped in with a lot of bad retail sites. There are a lot of bad retail sites in this country, but there are also a lot of good ones that could be acquired at a more attractive price now that the news is what the news is. Everything is cyclical in this business.

The second thing I would say is that there is a certain skill set involved in re-inventing a retail asset that when it is done well, retail can become not just a place for big box convenience shopping, but a place for people to gather for entertainment and for services that are not available on the Internet. So we don't think retail is dead. We think retail is changing and we want to be on the beginning of the changing curve and not on the end of it.

Globest.com: We are definitely seeing major retail properties looking to reinvent themselves, with entertainment, etc. Do you see this as a new trend that has begun to take hold?

Mooallem: Yes, it has been the trend for a while. It has happened in a lot of good properties and our belief is there is more of it that can happen. Historically retail meant building a property and then sitting around and collecting your checks once a month for the next 10 years. Now it is about curating your assets and taking care of it and spending money on it. It is definitely a harder business, but it also can be a lot more interesting.

Globest.com: You have previously stated that your firm is looking for opportunities in New York and Boston. Will you also be looking in the Carolinas and Florida?

Mooallem: I think we will definitely be looking in New York, Boston and South Florida for sure. I think we will absolutely look at some of the other smaller markets as well, should the right opportunity present itself.

Globest.com: Are you also looking at West Coast markets as well?

Mooallem: Yes, the major markets—San Francisco and Los Angeles.

Globest.com: You have stated previously that your company would possibly invest in mixed-use projects. By mixed-use, would that be residential and retail, predominantly multifamily, or are you talking about mixed-use being entertainment and retail uses?

Mooallem: All of the above. It could be a building in New York City that has retail on the ground floor and office above it or it could be a project in the suburbs in Westchester (County) or Long Island that is retail with residential. It could also be entertainment with office. Basically, we are not afraid of multiple product types in the same asset.