NEW YORK CITY—Less than a year after retail real estate executive Jordan Claffey joined RFR Realty —after toiling at Thor Equities—the firm has created a retail division and promoted the seasoned professional to VP and head of retail leasing. Claffey tells GlobeSt.com about the rationale behind the move, and what the division is focused on, in this EXCLUSIVE interview.
GlobeSt.com: Why did RFR decide to create a retail division at this time?
Claffey: The retail sector has been a growth asset class over the last several years; rents across the city have increased 20% to 30%. By bringing retail leasing in house, the opportunities are that much closer to the ownership.
GlobeSt.com: What does the firm look for when acquiring a retail asset?
Claffey: We generally look for value-add opportunities in areas that have growth potential, within gateway cities. We recently bought assets on the Bowery, on Bond St., and on Park Ave. South. All three of those properties are indicative of what it is we look for.
We also look for key traffic drivers. For example, look at the Second avenue subway line and how that's going to impact the Upper East Side. That's sparked tremendous rent growth on Third avenue.
Another major traffic driver is the Whitney Museum relocating to the Meatpacking District. The Whitney, the High Line, Google's headquarters and Chelsea Market are all factors that [prompted] the Samsung deal at 837 Washington St.
Other factors that stick out to us include population density and affluence; those are no brainers.
GlobeSt.com: What's on the horizon for RFR Retail?
Claffey: Going forward, we're continuing to look at the portfolio and ways to maximize value. We're creating a brand new space on 55th street between Park and Madison Avenues, next to the Core Club, that will be available in the summer of 2015.
Some of our other top priorities are enhancing the co-tenancy at 980 Madison Ave. We are marketing two spaces there for spring 2016 occupancy. Additionally, we are focused on the lease up at our hotel development at 11 Howard St., on the corner of Howard and Lafayette streets.
Generally speaking, we're very focused on enhancing the value of our existing assets and are always looking for new opportunities to grow the portfolio.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
