Simon and ghost kitchen operator Kitchen United launched a tech platform called Grab Go Eat that will make ordering from the landlord’s food-and-beverage tenants more convenient. Via web, app or a kiosk, a customer can order from multiple restaurants in a single transaction for either pickup or delivery. Pick up will occur at the restaurants or food lockers, and a delivery can go to a table, any store within the property, or off-property. Grab Go Eat will launch at Roosevelt Field in Garden City, Long Island, and Del Amo Fashion Center in Torrance, California, and the platform could roll out to more of Simon’s 232 properties. “Giving consumers the flexibility to dine when and where they want, as well as order from multiple restaurants all under one ticket, is something that will completely enhance the customer experience at these locations and set the precedent this year,” said Simon mall platform co-president Eric Sadi.
CenterCal Properties Will Launch Third-Party Management Business
CenterCal Properties has hired Paul Kurzawa as COO, and his first priority will be to launch a third-party services division to help owners and investors reinvigorate their centers. “As our industry quickly evolves, we now see an opportunity to offer our unique value-creation DNA to other real estate owners, investors and communities across the nation,” said CenterCal CEO and founder Jean Paul Wardy. “And we believe Paul, with his unique combination of real estate expertise and entertainment experience, will help us become the most admired and sought-after third-party advisory services company in the nation.” Kurzawa has more than 27 years of experience, including at Blackstone/Equity Office, DreamWorks Animation, Caruso and, most recently, Unibail-Rodamco-Westfield as executive vice president and director of operations. He was involved in the development of Westfield Century City, Westfield Valley Fair, The Americana at Brand and other marketplaces, as well as the redevelopment and repositioning of Chicago’s Willis Tower.
Private Equity Firm Targets Net Lease
Carlyle plans to grow its net lease investments practice into a multibillion-dollar business. The private equity firm’s Global Credit affiliate purchased iStar’s net lease business for $3 billion. The triple-net leases span 18.3 million square feet of industrial, office and entertainment properties. “We expect to grow this net lease strategy into a $10 billion business with a focus on making the product available to the retail channel over time,” said Carlyle managing director and Global Credit head Mark Jenkins. Last year, Carlyle Global Credit made its first fund investment in the net lease arena by agreeing to provide as much as $300 million in growth capital to Four Springs Capital Trust.
Big Deals Pumped Up Retail Property Transaction Volume in Q4
Retail properties accounted for 11% of total commercial real estate investment volume in the fourth quarter, according to CBRE. That’s the highest share for retail since the second quarter of 2020. Retail investment increased by 119% year over year in the fourth quarter to $34 billion and by 84% for the full year to $74 billion. Mergers drove much of the activity: Portfolio-level retail property transactions totaled $14 billion in the second half of 2021, including Realty Income’s acquisition of VEREIT’s retail portfolio, Kite’s acquisition of RPAI and Kimco Realty’s acquisition of Weingarten Realty. Multifamily continued to be the preferred commercial property investment, according to CBRE, accounting for 45% of transaction volume in the fourth quarter. Meanwhile, industrial accounted for 22% and properties for 17%.
Kimco and CBL DEI Moves
Kimco Realty recently celebrated its designation as a Best Place to Work for LGBTQ+ Equality 2022 by the Human Rights Campaign Foundation. Kimco got a perfect score on the group’s 2022 Corporate Equality Index. Meanwhile, CBL Properties has partnered with professional services firm Hinton & Co. to shape a more inclusive workplace and portfolio. During the past several months, Wade Hinton has conducted one-on-one interviews, focus groups and a companywide inclusion survey to inform the DEI side of an in-process environmental, social and governance strategy.
Monumental Movie Theater Growth Is Coming in Saudi Arabia
The Saudi Arabia Ministry of Investment aims to have 2,600 movie screens in the country by 2030, up from 430 now. Analysts expect the country, where movie theaters have been legal for only about four years, to become a billion-dollar movie market in the next few years. Most existing theaters in Saudi Arabia are operated by local operator Muvi Cinemas, at 21. Dubai-based Vox Cinemas has 15 locations, U.S. chain AMC Theaters has 10, Lebanon’s Empire Cinemas has five and Mexico-based Cinepolis operates two multiplexes there.
A REIT Finds a New Way to Absorb Retail Space
Agree Realty is relocating its headquarters to a former Art Van Furniture store in Royal, Oak, Michigan. Buildout on the approximately 50,000 square feet begins this quarter. The relocation is scheduled for the second quarter of 2023.
By Brannon Boswell
Executive Editor, Commerce + Communities Today