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ONSITE continued from page 54 and redevelopment potential,” includ- ing adding other uses, said Ross Cooper, president and chief investment ofﬁcer of the New Hyde Park, N.Y., company. Several Kimco properties, he said, are in markets where development actually grew up around the project. And, Cooper added, the appeal of grocery-anchored centers continues: “There’s deﬁnitely more competition in grocery-anchored space.” It’s important to note that, over the years, Kimco has sold properties amount- ing to $5 billion, monies that are being recycled into new acquisitions at prices that Cooper says can be aggressive: “We see the beneﬁt of economies of scale.” 5. Agree Realty Corp. The newcomer to CSA’s Fastest-Growing Acquirers list, this Farmington Hills, Mich.-based fully integrated REIT focuses on net lease retail properties. Agree placed ﬁfth with 1.7 million sq. ft. acquired in 2016, but president and CEO Joey Agree will tell you that square footage may not be the best metric for measurement. To him, it’s more about what the company is buying — a fungible base of properties in major markets that can be leased to top service-oriented retailers. “Our properties are e-commerce re- sistant and recession-resistant,” he said, mentioning tenants such as AutoZone, T.J. Maxx, National Tire and Battery, and Walmart Neighborhood Centers. “Our fo- cus is on being a leading operator in that sector as retail will continue to be trans- formed. And with a highly fragmented industry, opportunities abound.” 6. Cole Credit Property Trust IV/VEREIT As a non-listed REIT sponsored by VE- REIT division Cole Capital, sixth-ranked Cole Credit Property Trust IV acquired 15 properties, totaling 1.3 million sq. ft. Among its recent acquisitions is East West Commons, an open-air property in metropolitan Atlanta/Marietta, Ga. The key was the center’s 25,000-sq.-ft. outparcel potential, said Brett Sheets, SVP of leasing for VEREIT, Phoenix. “This was a challenging space for a single new lease because of its size,” he said. Originally, the company planned to “Our properties are e-commerce resistant and recession-resistant. Our focus is on being a leading operator in that sector as retail will continue to be transformed. And with a highly fragmented industry, opportunities abound.” Joey Agree, president and CEO of Agree Realty Corp. redevelop the space into smaller shops. However, once negotiations began with Panera Bread, VEREIT opted to add a drive-through and four additional retail storefronts. The result increased visibility from major roads and improved parking. “VEREIT will continue to analyze single-tenant retail and anchored shop- ping center opportunities,” said Thomas W. Roberts, EVP and chief investment ofﬁcer at VEREIT. And that’s already underway. The company has announced plans to acquire $450 million to $600 million of single- tenant retail and industrial properties. Inland’s Deal Machine Rolls On Given the success of this year’s Fastest- Growing Acquirers, it’s understandable to think the process seems simple. Well, it’s not as easy as it looks, warned G. Joseph Cosenza, president of Oak Brook, Ill.-based Inland Real Estate Acquisitions. Quality must meet opportunity and yield, he said. The grocery-anchored center remains as strong an investment as ever, Cosenza said. An Inland fund that’s dominated by grocery-anchored projects (approximately 80%) has 95% occupancy. Supermarket renewals are resulting in rent increases of 10% and higher. “I do not have any fears in my grocery leasing,” Cosenza said. “I will put Publix and Kroger against anybody.” But ﬁnding quality for future center acquisitions can be a challenge. Over the past 24 months, Cosenza and his two ac- quisition specialists reviewed some 5,750 deals across all sectors — and that ﬁgure 56 excludes those that the group instantly knew wouldn’t ﬁt their criteria. Of those, Inland made offers on 877 deals, and only purchased 116. For retail, Inland reviewed 2,333 properties over the past two years, made offers on 402 deals, and purchased just 73, dropping Inland from its usual spot in CSA’s top ﬁve list of acquirers. But only temporarily. “Prior to July when Treasury and swap rates were at their lowest, people were buying more than they used to. After July, there was a huge drop-off,” Cosenza said. “In July, the 10-year Treasury was at 147 basis points. Today, it’s 100 basis points more. The same is true for swaps, which was 137 and is 100 basis points more now. That confuses a lot of people and stops them in their tracks. It causes disruption, and I love it. It gets some of them out of my way.” That same disruption will be felt for owners of the CMBS debt coming due G. Joseph Cosenza, president of Inland Real Estate Acquisitions from 2007 and early 2008; they may not be able to reﬁnance the same sums as un- derwriting standards have tightened and interest rates have risen, Cosenza added. “I do expect to see more and more com- ing on stream,” though quality and the ability to add value will remain an issue, Cosenza said. “And I will have a big smile on my face.” MAY/JUNE 2017 CHAINSTOREAGE.COM