Do Private-Equity Chain Buy-Outs Hurt Your Business?

Barry Argalas is vice president of national acquisitions and dispositions of Regency Centers. The Jacksonville, FL-based firm owns interests in 409 properties across the country and is in a joint-venture deal to acquire 33 centers from the Desco Group for $400 million.

Despite a growing number of private-equity retail chain buy-outs, 69% of respondents to GlobeSt.com's recent poll say the deals have not hurt their business. On the other side of the coin, 31% have seen an effect. Argalas counts among the majority, believing that private-equity buys have not had a major impact on how shopping-centers owners do business. To him, it all depends on the tenant and quality of the real estate. Here is his take on the issue:

"The private equity buying of retailers as it relates to our portfolio really hasn't been that great. I think that stems from the quality of our portfolio. You see most private equity guys coming in and buying struggling retailers. We haven't really seen that great of an impact. The most impact we saw was with Albertsons and some of the centers that we have since sold because all of those were shadow anchored in Texas where we didn't control the anchor. But with Vornado's acquisition of Toys "R" Us and others like it, it hasn't really impacted us.