(For more retail coverage, click GlobeSt.com/RETAIL.)
WASHINGTON, DC-Shopping centers are the focus of Perseus Retail Partners' newly established $250-million fund. The Perseus Realty Partners affiliate has just launched the funding program, which targets developers and owners of non-mall retail properties across the country for development and repositioning. Assets for consideration include grocery- and drug store-anchored centers, power centers, lifestyle centers and urban retail.
"One of the most striking features of the program, and what distinguishes it from others, is that it is designed to solely invest in non-mall retail assets," says Perseus Realty Partners director Thomas J. Hofheimer. "We are able to provide equity or mezzanine debt and price our capital on a truly risk-adjusted basis." The fund further sets itself apart from others with its willingness to invest in business plans up to 10 years.
There are no national geographical constraints for the new fund, which aims to provide joint venture equity and mezzanine debt--everything above first mortgages--in both metropolitan area suburban and urban markets with populations of at least one million and high barriers to entry. The firm has pinpointed a couple of desirable asset attributes as particularly good investments.
"We think there is a tremendous opportunity in the foreseeable future in urban underserved markets," Perseus Realty executive managing director Mark R. Dawejko tells GlobeSt.com. "And there is a lot of opportunity with major discounters, like Super Target and Super Wal-Mart, and shadow retail. Another major focus is the traditional grocery-anchored asset where we see an opportunity for redevelopment and re-tenanting."
While marketing of the fund--which features a minimum investment of $3 million, but no set maximum--has just begun, some deals are currently under consideration. "We are specializing in retail and we'll be able to give our partners quick and accurate answers," Dawejko says. "We know the business and intend to be here for the long haul. "
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