"We see a lot of growth potential at Hoover Eleven," says Dennis Gershenson, president and CEO of the real estate firm. "Some retailers there are talking to us about expanding their stores, so we see tremendous opportunity there to enhance the value of the center."
In just the past six months, Ramco-Gershenson has purchased three shopping centers in the Midwest, to bring its total number of properties to 64, with about 13.2 million sf of retail space.
Gershenson says the Hoover Eleven center matches up very well with the company's ideal property--it is anchored by a grocery store, Kroger, to help drive customer traffic and it is an area that is built up so new competitors are unlikely to enter the market place.
"We are very focused on making acquisitions we can add value to," Gershenson says. "Maybe some of these properties in the eyes of the seller are fully valuated, but we see any number of things that can be done to add value."
"Some times, it might take 12, 24 or even 36 months, but that's the goal we are working toward," he says.
A case in point is Ramco-Gershenson's Roseville Towne Center in Roseville, MI. There the company renovated the center and lured in a new Wal-Mart store, which opened two years ago. Then, Ramco-Gershenson renovated a former Service Merchandise location there to accomodate a Marshalls Megastore. Negotiations continue with another "destination" retailer to fill in the original Marshalls location.
Ramco-Gershenson's efforts in 2003 have paid off, at least in terms of its stock price. The company's stock, which trades on the New York Stock Exchange as RPT, opened 2003 at $20. This week, it was trading above $28. Over the past two years, the company's stock price has increased by about 60%. With improving retail sales on a national basis, Gershenson says he expects a boost for his company's type of assets. Gershenson also says his company looks to do more of the same type of business in 2004 as it did in 2003.
"We are looking for other centers. If there is anybody out there with a shopping center they are thinking of selling, they need to give us a call," he says.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
