Whoever said that retail is dead must be proven wrong. Our guest today, Phillip Block, managing partner of LBX Investments, talks about the opportunities he found in retail investing, specifically shopping centers. He has years of experience with a number of U.S. shopping center acquisitions and managed all capital raising and asset management efforts.
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Phillip shares that when many analysts a few years back claimed that the retail industry is down, he and his partner saw an opportunity in this asset class. He even describes how their shopping centers survived the economic effect of the Covid-19 pandemic. He also details how they can hit double-digit growth in a rising interest rate and inflationary environment. Listen now and learn more about the opportunities in the retail space!
Key Points From This Episode:
- Phillip dispels a myth about investing in retail, specifically shopping centers.
- Phillip shares that they can hit double-digit growth in a rising interest rate and inflationary environment.
- How do LBX Investments target value-add and 4 plus investment strategy?
- Does Philip seek help from a brokerage to find properties?
- What are the impacts of the Covid-19 pandemic on the retail industry and how did those affect Phillip’s acquisition?
- Philip admits there’s bad retail.
- Are there ways to capture the loss value under market leases?
- Most of Phillip’s cash flow comes from credit-tenant on side leases.
- The kind of lenders for retail space.
- Do cost-segregation studies needed for investing in retail?
- What’s the key to Phillip’s success?
- How does Phillip find deals nowadays?
“What we found is when everybody rushes to one side of the aisle or one group of capital, you know, and everybody is running away from retail, there’s opportunity.”
“We can hit double-digit cash-on-cash in a rising interest rate environment and in an inflationary environment that we see today. We haven’t found other asset classes where those dynamics are true.”
Links Mentioned in Today’s Episode:
About Philip Block
Philip Block is one of the managing partners of LBX Investments. Prior to launching LBX Investments in February 2018, Philip was a partner at Big V Capital, an owner-operator of Southeastern U.S. shopping centers. While at BVC, along with Rob Levy, he oversaw and underwrote the partnership’s 11 Southeastern U.S. shopping center acquisitions and managed all capital raising (both debt and equity) and asset management efforts.
Formerly, Philip was a Senior Managing Director at RealtyMogul.com, where he created commercial lending and led institutional capital markets efforts. Prior, he was VP of Corporate Finance and Capital Markets at Centerline Capital Group, NYC-based multifamily and financial asset management company with $13B in AUM. Prior, he helped launch Dominion Capital Advisors, a commercial real estate advisory firm with an affiliated mezzanine/private equity lender. Philip began his real estate career as an investment banker at Cantor Fitzgerald in NYC.
Philip has a BBA, cum laude from George Washington University, and graduated from the General Course at the London School of Economics with a degree in Finance.
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