PHOENIX-Prolific retail developer RED Development has moved away from new construction to focus on building an operating portfolio with its existing assets and future acquisitions. The shift is a response to the continuing lack of demand for new retail product, according to Steve Maun, president of RED Development.

As part of the new strategy, RED Development formed a joint venture with its long-term institutional capital partner, which is advised by CDK Realty Advisors. The new company, RED Consolidated Holdings LLC, owns 22 properties totaling more than 9 million square feet in 12 states. The properties were contributed by both RED Development and CDK’s client, Maun notes. RED Development is now a subsidiary of RED Consolidated Holdings and will manage the portfolio.

Since the relationship with RED began in 1999, CDK on behalf of its client has invested $280 million in select RED development projects including: CityScape in Phoenix; Village Point in Omaha, NE; and Summit Fair in Lee’s Summit, MO. CDK and RED continue to develop certain projects under the original 50/50 development joint venture.