Hutensky Group officials note that the fund will "seek to acquire retail properties with vacancy, operating deficiencies and/or expansion opportunities in markets east of the Mississippi River. In addition, the fund will invest in joint ventures with owners of properties that meet its criteria."
Timothy J. Hoeppner, managing director of the John D. and Catherine T. MacArthur Foundation, comments, "Retail is currently out of favor in the investment community, that's why we believe the timing is right to invest in this sector." Hutensky Group officials report that the HRI Fund was officially formed on Monday, May 14.
"We like well-located shopping centers that are experiencing problems," says Brad M. Hutensky, president of the Hutensky Group. "We're small enough to make quick decisions yet big enough to close quickly, with or without a mortgage. We have the capacity to be creative in order to meet the seller's needs and we are not afraid of a property with a few twists."
The Hutensky Group, which was formed in 1979, will provide acquisition, property management, leasing, accounting, development and investment sales services to the HRI Fund. The Hutensky Group has been involved in more than 20 million sf of shopping center space across the United States.
The firm is currently working on a Community Development Corporation property entitled New Horizons Retail Center, a 134,000-sf shopping center in the South Bronx. That project broke ground in April of this year. The company is providing a host of services to that venture, including acting as managing and leasing agent.
Denise Robidoux, marketing coordinator for The Hutensky Group, notes that the fund's first investment was the $11.5 million acquisition of the 200,000-sf Deptford Crossing Shopping Center in Deptford, NJ. Marshalls, T.J. Maxx, OfficeMax, PETsMART, Michaels and Jo Ann Fabrics anchor that complex. Robidoux adds that the fund is looking for shopping centers with either grocery store chains or value-oriented retailers, such as Marshalls or T.J. Maxx, as its anchors.
The fund is in discussions regarding the acquisition of several other shopping centers. Robidoux says that no announcements are imminent. In addition, the fund is looking for and is willing to consider other investment opportunities, she adds.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
