The Mansour Group of Marcus & Millichap, one of the nation's leading real estate investment services teams, has facilitated the sale of the Uptown District Shopping Center to Regency Centers Corporation (NYSE: REG), the preeminent national owner, operator, and developer of dominant grocery-anchored shopping centers. This 148,638 square-foot mixed-use retail center, located at 940 University Avenue in San Diego's Hillcrest neighborhood, was one of the pioneer properties of mixed use developments in Southern California. The center commanded a sales price of approximately $81 million, making it the largest retail transaction in San Diego County in 2012.
This high profile institutional grade asset is a one-of-a kind dual grocery anchored center located in San Diego's up-market urban in-fill Hillcrest neighborhood. This high-barrier to entry location coupled with a strong lineup of national tenants (including daily needs, lifestyle, and dining categories) provides a retail destination for the 547,000 residents that live within a five-mile radius.
The center boasts an ideal line-up of top tier national tenants that includes Ralphs, Trader Joe's, Wells Fargo, Panera Bread, Starbucks and many more. The shopping center's tenants are on long-term escalating leases that provide stable in-place cash flow with a strong continued growth potential.
"The sale of Uptown District Shopping Center exemplifies the unwavering demand for trophy assets in major metropolitan markets," said Alvin Mansour, Principal of The Mansour Group. "Although there has been an overall uptick in sales volume for retail properties, the increase in demand for multi-tenant properties has been magnified in the grocery anchored segment. We are confident that Regency Centers will continue the historical success associated with the ownership of a nationally recognized Class A asset."
The Mansour Group of Marcus & Millichap
Led by Alvin Mansour, The Mansour Group is a team of highly qualified investment professionals specializing in multi-tenant and net-lease investment sales, sale-leaseback transactions and portfolio dispositions nationwide. The Mansour Group understands the importance of world-class brokerage services and the value they can create. Alvin Mansour has completed commercial real estate investment transactions valued in excess of $1 billion and was recognized in Forbes 30 Under 30 for 2012. Further information on The Mansour Group can be found at www.TheMansourGroup.com.
Regency Centers Corporation (NYSE: REG)
Regency is the preeminent national owner, operator, and developer of dominant grocery-anchored and community shopping centers. At September 30, 2012, the Company owned 347 retail properties, including those held in co-investment partnerships. Including tenant-owned square footage, the portfolio encompassed 46.1 million square feet located in top markets throughout the United States. Since 2000, Regency has developed 209 shopping centers, including those currently in-process, representing an investment at completion of more than $3.0 billion. Operating as a fully integrated real estate company, Regency is a qualified real estate investment trust that is self-administered and self-managed.
April 11, 2013
CALABASAS, CA-"As tenant demand increases for well-located junior box space, landlords will not be as motivated to keep a struggling tenant or offer concessions." So says Alvin Mansour, senior vice president of investments and senior director of the national retail group and net leased properties group at Marcus & Millichap Real Estate Investment Services, who recently chatted with GlobeSt.com west coast editor, Natalie Dolce on where retail is headed, who the players are, and where the opportunity lies. Mansour was recently named one of the firm's top investment specialists of Marcus & Millichap nationwide.
GlobeSt.com: In the spring of 2009, the retail sector was in the center of a perfect storm caused by a number of factors including the housing crash, overbuilding and frozen credit markets, not to mention massive job loss and a lack of consumer confidence. Where do things stand today and where are they headed? How is inventory?
Mansour: The retail market has been slowly rising over the past couple years and is in full force for 2013. With the lack of development post-recession, we have seen the market catch up with good absorption and tenant expansion requiring new retail. Although much more conservative, our developers pipelines are slowly growing and we are seeing some tenants ramp up expansions.
With the lack of inventory for sale, the record low 10-year treasury, and the deficiency of better investment choices, we expect 2013 to finish very strong. Since financing is currently available at such low rates, traditional investments such as CD's, mutual funds and others do not offer the rate of return that they used to.
GlobeSt.com: What is the single biggest factor impacting the retail business right now?
Mansour: E-Commerce is one of the biggest factors impacting the retail business. Its reach can be seen with big box anchor tenants attributing high percentages of their revenue to online sales and forcing them to rethink their company mentality. Increases in these areas impact what locations they keep open and/or downsize.
GlobeSt.com: Due to e-commerce, are you seeing that any retail design is changing as a result of that, to maybe highlight items that can be purchased online vs. in-store? Is the use of store displays changing to reflect this?
Mansour: The retail market is extremely competitive and ever changing. Retailers are adapting the products that they offer and taking advantage of the real time data that they receive from their online stores. They have to keep up with the pace of the digital era so they have no choice but to stay relevant. They are being more selective with the items that they highlight in their stores and are changing the design to make it easier to find product. There has been a definite shift with some companies offering more options to their clients online.
GlobeSt.com: What buyers are out there? Private? REITs? Foreign money? Who are the players?
Mansour: We have seen a large increase in private buyers exiting the stock and bond markets that are targeting retail opportunities. Many private buyers are also shifting away from management intensive investments like apartments and moving towards passive single tenant investments.
Foreign buyers have also come into play considering the instability in the global markets, we have recently sold some shopping centers, single tenant retail and office buildings to oversees buyers. We have also seen an uptick in interest from Latin American buyers targeting the US for real estate investment.
Most of the major players in the current marketplace have been large REIT's, Pension Funds, Institutions and private funds. Although the majority of transactions under $20 million are dominated by the private buyer with the highest percentage being based in California. We have successfully transacted with several unique buyer pools including, Doctors, Lawyers, Agricultural Farmers, Sports Athletes, and high profile entertainment industry individuals.
GlobeSt.com-With every challenge there's usually an equal or larger opportunity. Where do you see the opportunity in the retail business?
Mansour: We see great opportunity investing in secondary/tertiary markets. There is opportunity to purchase quality credit anchored well located dominant centers at spreads 200bps higher than major markets. With rates where they are, this allows investors to achieve a strong double digit cash on cash return. We are seeing CMBS lenders enter this market more aggressively due to the lack of major market deals. They have no choice so expect to see great opportunity in this area.
GlobeSt.com: On another note, are you seeing many landlords renegotiating deals with tenants to keep them in place or has that slowed down at all?
Mansour: The pace of renegotiations has slowed down drastically from years past. We're still seeing landlords renegotiating leases with junior box tenants who have been struggling throughout the recession and looking to reduce square footage. In many cases this has been mutually beneficial for both the tenant and the landlord. However, as tenant demand increases for well-located junior box space, landlords will not be as motivated to keep a struggling tenant or offer concessions.
GlobeSt.com: Is there any overbuilding happening or is that no longer a concern?
Mansour: Overbuilding has not been a concern in retail due to the lack of development we have seen over the past couple years. Although absorption has picked overall in the last two quarters, employment growth has not reached the level most retailers need to get back into expansion mode on a large scale. There exceptions but overall we aren't concerned about over building at this point in the cycle. From a brokerage stand point, we are seeing a continued supply issue and need more product to deliver with the amount of liquidity looking for deals.
GlobeSt.com: How are retailers doing in Southern California and what is your perspective on SoCal's viability relative to the rest of the country?
Mansour: Southern California remains a stand out market along with other major metropolitan areas. It remains a source of investment capital with the ever changing market. Retail remains strong and the constant redevelopment to keep up with the completive market is intact.
January 4, 2013
Setting out to lease and sell properties in the huge expanse of real estate known as Southern California is a daunting task. From the industrial buildings of the Inland Empire, to the high-rises in the Los Angeles CBD, the region presents a multitasking challenge to any broker that wants to work this territory. Recently, the editors of Real Estate Forum collected deal information from leasing and investment brokers across the metro area who have met that challenge. We've come up with a roster of the most prolific brokers in the market, featuring the top 16 individual agents or teams who handle landlord and tenant representation, followed by the top 15 most active investment sales brokers or teams, presented in alphabetical order.
METHODOLOGY: Deal information is for commissionable transactions closed in the Southern California region between October 1, 2011 and September 30, 2012, and all data shown has been supplied and verified by the companies themselves. Leasing brokers were given scores based on the total number of leasing transactions they closed, the total square footage of all leasing transactions and their total value. The final score was based on the average of the three fields. The investment sales brokers were scored on total number of sales transactions closed and total sales volume, with the final score based on the average of those two figures.
To see who made the list, please visit the December issue of Real Estate Forum online
The San Diego real estate broker was recognized in the 30 Under 30 Real Estate section.
SAN DIEGO, Jan. 5, 2012 - Alvin Mansour of Marcus & Millichap Real Estate Investment Services, the nation's largest real estate investment services firm, has been recognized by Forbes magazine for his achievements in the commercial real estate industry at the age of 29.
Mansour, a senior vice president investments and senior director of Marcus & Millichap's National Retail Group (NRG) was recognized for closing more than $1 billion in real estate transactions in the past eight years. Forbes also recognized Mansour as the firm's top listing agent in 2010. Mansour specializes in the sale of single- and multi-tenant retail properties throughout California and nationwide.
"This recognition was very deserving," says John Vorsheck, regional manager of the San Diego office of Marcus & Millichap. "Alvin is one of the most dedicated, hard-working brokers in Southern California and his commitment to providing superb service to our investor clients is unparalleled. When he's not working hard to close transactions along with his team, Alvin is either out performing community service or spending time with his family."
Mansour has received numerous awards from Marcus & Millichap for his investment sales achievements. Last year, he was recognized as one of the company's top three agents nationwide among a field of more than 1,200 brokers. Mansour is consistently ranked as the top agent in the San Diego office, having garnered the award the past five consecutive years: 2006, 2007, 2008, 2009 and 2010. Mansour also earned the Rookie of the Year Award from the San Diego office shortly after joining the firm in 2003.
Several real estate trade magazines, including Real Estate Forum, Real Estate Southern California and the California Real Estate Journal have recognized Mansour for his accomplishments as a leading investment broker under the age of 30.
Mansour is dedicated to assisting both the local San Diego County community and the international refugee community. "During these challenging times when so many people face adversity because of their economic situation, ethnicity and religious beliefs, it's more important than ever to give back to those in need," says Mansour.
Recently, Mansour funded the construction of a Catholic church in Nicaragua under Mother Theresa's Order. He also serves as the chairman of the fundraising committee for CMSS - Refugee Social Services, which is dedicated to providing mental health and other services to immigrants from Middle Eastern refugee camps. In Iraq, Mansour's donations through the St. Dominican Order were used to improve local schools and aid the residents of the town of Tel Keppe outside of the village of Mosul.
Locally, Mansour is a member of Trinitarians of Mary, the Catholic World Mission, the Leukemia & Lymphoma Society, St. Madeleine Sophie's Center, St. Peter's Chaldean Catholic Cathedral, Intercessors of the Lambs and Knights of Columbus.
A graduate of St. Augustine High School in San Diego, Mansour earned his bachelor's degree from the University of San Diego where he studied Business with an emphasis in real estate. Mansour remains actively involved in the work of his alma mater through the Burnham-Moors Center for Real Estate at the University of San Diego.
CALABASAS, CA – March 15, 2013
Marcus & Millichap Real Estate Investment Services, the nation's largest real estate investment services firm, has announced its top investment specialists for 2012. Alvin Mansour of Marcus & Millichap's San Diego office received the firm's top multi-tenant award out of more than 1,000 investment specialists nationwide. He also received Marcus & Millichap's top listing agent award for the third consecutive year.
"We are proud to recognize Alvin as one of the firm's top agents, as our top multi-tenant retail agent and as our top listing agent nationwide for the third year in a row," says John J. Kerin, president and chief executive officer of Marcus & Millichap. "Alvin's achievements on behalf of clients and his consistently high rankings demonstrate superior knowledge of the retail and net-leased properties markets and an exemplary commitment to client service."
Mansour began his career as an agent in Marcus & Millichap's San Diego office in 2003. He earned the firm's Rookie of the Year award that year and went on to become one of the most successful young agents in the history of the firm. Mansour has completed commercial real estate investment transactions valued in excess of $1 billion.
He has been recognized by Forbes magazine for his accomplishments in commercial real estate. Several real estate trade magazines, including Real Estate Forum, Real Estate Southern California and the California Real Estate Journal have also recognized Mansour for his accomplishments as a top investment broker nationally.
By Michael Klam, Special to The Daily Transcript – San Diego, CA
Thursday, March 28, 2013
Alvin Mansour was born and bred for business. Working in the family market at an early age and watching the business diversify into real estate sparked his passion for building teams and making deals.
A go-getter from the start, he earned his bachelor's degree from the University of San Diego and promptly landed a lucrative position atMarcus & Millichap. He won Rookie of the Year in his first year at the firm, and within three years he was a Top 10 Broker nationwide.
With more than $1 billion in closed investment transactions, at 30 years old Mansour has been Marcus & Millichap's No. 1 multi-tenant agent nationwide, a top five single-tenant retail agent, a top five agent, and the company's No. 1 retail agent nationwide.
Mansour is senior director of the National Retail Group and senior vice president of investments.
"In 2012 we did over 80 transactions totaling over $400 million dollars," Mansour detailed. "In 2013, we are expecting sustained growth in both the single and multi-tenant sectors. We currently have a couple major transactions under contract," he added.
In 2012, Mansour and his team facilitated the sale of Uptown District Shopping Center off University Avenue for approximately $81.1 million. This was the largest retail sale of the year in the county of San Diego, according to Mansour.
"It was a crowning achievement of mine and a proud moment for me because it happened in a city that is so near and dear to me," he said.
Another standout in 2012 for Mansour's team was the ViaSat Digital Communications office building in Carlsbad. It closed in July of 2012, and the sale transacted at a record-breaking $341 per square foot.
Mansour credits his team for the success. "We are a group of nine driven individuals that work to streamline the process of our clients' investment experience," he said.
Each member has a specialized segment of the brokerage continuum, he explained, and each has specific responsibilities ranging from marketing, analysis and research, to transaction coordination.
"We work like a well-oiled machine to make sure our clients are provided with the best possible service," Mansour said.
He has his brother with him on the team, keeping family close. And his team members support him in full.
"Alvin employs a large team of people, which he genuinely cares for, and is an all-around thoughtful guy, despite his great success thus far," Operations Manager Jamie Newland said.
Mansour's outlook for the industry is generally positive, and he expects it to remain relatively stable over the next 18 months, "provided interest rates don't spike," he said.
At a young age, Mansour has already achieved in his field what many spend their lives pursuing, and he has done it not just for himself but also for his family, his team and his community.
As a philanthropist, Mansour has funded the construction of a Catholic church in Nicaragua through Mother Teresa's Order. Also, with more than half of The Mansour Group as graduates of the Burnham-Moores Center for Real Estate at USD, the team remains involved in the activities of the organization and participates as a large donor.
"Alvin makes impossible deals happen, and contributes greatly to the San Diego economy, both economically as well as in his personal efforts," Newland said.
By Natalie Dolce
SAN DIEGO-GlobeSt.com exclusively learns that Alvin Mansour, a senior vice president of investments and senior director of Marcus & Millichap Real Estate Investment Services' national retail group recently closed 11 transactions at $44 million, demonstrating increased buyer appetite among exchange buyers and private investors.
Mansour represented the sellers in these 11 separate shopping strip center transactions throughout the US. The sellers were developers and family trusts, while the buyers were private investors.
The properties are located in Mississippi, Utah, Texas, Illinois, California, Kentucky and North Carolina. "The strip center segment has presented its share of challenges," Mansour says, "but it is improving steadily, along with the entire retail sector and lending market. As we continuously expand our already deep access to a pool of investors nationwide, more private buyers will vie for these strip centers—even in secondary and tertiary markets."
Mansour points out that 1031 exchange buyers are becoming increasingly active in the strip center segment. "We have seen a number of exchange buyers trade non-conventional product, instead of once-common apartment complexes, for strip centers because of their stabilized returns and ease of management," he says. "An array of unique properties, including ranches, parking lots, and RV parks, are now being traded for strip centers."
Mansour also explains that the buyer profile has clearly changed. "As competition heats up, cap rates will continue to compress for strip centers, a trend we began to see late last year."
In Los Angeles, Mansour closed the largest strip center transaction—which totaled $8.8 million—at 4414-4430 York Blvd. The 18,498-square-foot strip center is anchored by CVS, Starbuck's and L&L Hawaiian Barbecue.
He arranged the sale of Turtle Creek Corner, a 119,334 square-foot retail center in Hattiesburg, MS. The 98% occupied property is triple-net-leased to several national credit tenants including Lowe's, TJ Maxx, H&R Block and others.
Conn's and Shops at Alameda in Houston sold at $5 million to a private investor. The property was anchored by Conn's and featured several regional and local tenants. He negotiated the sale of Riverton Depot, a fully-leased retail center in Riverton, UT. Tenants at the 32,384-square-foot asset include Staples, Dollar Tree and Shoe Carnival. Heights Corner in Forth Worth, TX, a Chick-Fil-A and Starbucks-anchored center, traded at a 7.68% cap at more than $442 per square foot. The Market at Byram, a 69,054-square-foot neighborhood center anchored by Vowell's Marketplace, sold to a private investor in Byram, MI. Shops at Liberty Plaza in Crystal Lake, IL, a neighborhood center with regional tenants, traded for just north of $302 per square foot. A Starbucks and Jimmy John's anchored strip center in Louisville, KY, closed at $575 a square foot to a private 1031 exchange buyer based in California.
He also arranged the sale of: an 8,930-square-foot strip center in Cedar Hill, TX, anchored by Verizon Wireless and Sears; Shoppes at Indigo Trails, a 12,500-square-foot retail asset in Queen Creek, AZ; and a 4,930-square-foot strip center in Concord, NC, anchored by T-Mobile.
Mansour has been busy as of late. As GlobeSt.com exclusively reported at the time, he recently negotiated the sale of seven Walgreens located throughout the US since the first quarter, as GlobeSt.com exclusively reported. The properties, located in Virginia, Indiana, Missouri, North Carolina, West Virginia, Mississippi and Texas, traded for approximately $36.4 million.
Alvin Mansour, senior vice president investments and senior director, National Retail Group of Marcus & Millichap in San Diego
1. What are the biggest trends you currently see in the retail market?
We are continuing to see high demand for investment-grade, single-tenant assets, but have witnessed increased demand over the past 18 months for higher-price-point, multi-tenant retail centers.
Developers have been targeting the San Diego-Mexico border to take advantage of the world's busiest border crossing. More than 21 million people come north annually from the border, spending about $6 billion in shopping each year. This figure is rising rapidly in conjunction with the increasing value of the peso. With $600 million dedicated toward border expansion, improvements are already in process to increase the accessibility of the 50,000 vehicles and 25,000 pedestrians that enter the United States daily through the San Ysidro Land Port of Entry. The Shamrock Group, for instance, is in prime position to capitalize on these trends with their Plaza at the Border development, a 98,000-square-foot retail center positioned adjacent to the Las Americas Premium Outlets.
2. Which retail product types are currently performing the best in your region?
Neighborhood centers, which have accounted for 40 percent of multi-tenant retail transactions over the past 24 months, are attracting the most demand in the San Diego region. Specifically, grocery-anchored centers are creating extremely competitive bidding environments, resulting in transactions that are closing at or above listing price.
3. How are big boxes performing in your market? What about mom-and-pop retailers?
The city's ban on big-box retailers has pushed these companies to consider new ways of entering the San Diego market. Walmart has announced it will open its first local Neighborhood Market in the Logan Heights area this fall. It will be leasing the Farmers Market Building at the corner of Commercial and 22nd streets, an area that's traditionally been plagued with vacancy issues. The company has been aggressively expanding its small grocery store format, and has plans to open 11 new Neighborhood Market locations in California. This smaller format is very flexible, which allows it to conform with local communities and encourages increased economic activity.
With the uncertainty created by the European Debt Crisis and the subsequent reduced interest rates, we've seen a sustained flight to investment-grade credit assets at all price points. Investors are willing to take a small amount of risk with mom-and-pop retailers as part of a multi-tenant center as long as the center is anchored by a credit tenant with strong sales to offset the associated risks.
4. What kinds of retailers are performing the best in San Diego?
While service stations have seen the largest year-over-year change, an increase of more than 17 percent in transaction volume, drugstores and banks continue to lead investor demand. Convenience store 7-Eleven has been aggressively expanding throughout the market, and has recently opened more than 600 new locations nationwide.
The county has also seen an increasing number of discount retailers. There are 18 new Dollar Tree stores, 17 new 99 Cents Only stores and numerous new mom-and-pops. These retailers' smaller, more convenient locations allow them to compete directly with larger powerhouses like Target and Wal-Mart. Trends are showing that middle-class shoppers are opting for deep discounting in lieu of department stores. Ross Stores is cashing in on this craze by introducing their dd's Discount concept into the San Diego market. The company plans to open 20 additional locations nationwide this year, many of which will take place in mature shopping centers. This is in addition to the more than 80 dd's Discount locations that are currently in operation.
5. How are local mixed-use properties performing?
Mixed-use projects in the San Diego region have been performing well, sparking the emergence of new mixed-use projects like Pacific Station in Encinitas and the $1-billion renovation project of the Westfield UTC Mall in La Jolla. With rising gas prices, renters are looking to reside closer to their workplace and retail centers.