Lake Bluff, IL-Pine Tree Commercial Realty, LLC is forming a new division of the company that will focus on acquisition, ownership and disposition of real estate assets Known as Pine Tree Institutional Realty LLC.
Tim Roe has advanced from executive vice president of Pine Tree Commercial Realty, a position he has held for the past 11 years, to president of the development division. He tells GlobeSt.com that the company is separating into two different factions as a result of the company’s unanticipated development and acquisition successes.
During the past two years, the company has invested $149M in shopping center acquisitions. Throughout the next 12 months, the company is planning to spend $200 million, with a focus on the Pacific Northwest, West Coast, the Southwest and possibly the Southeast. “We look for high-residential growth areas,” Roe says. “It has slowed down in the Midwest, but that’s not the case in those other areas.” Pine Tree, historically a company that develops, constructs, leases and manages ground-up retail developments, will be acquiring new and value-add stabilized assets, Roe tells GlobeSt.com.
“We like the category killers—Bed Bath and Beyond, Barnes and Noble, etc.—and then five or six dominant stores and several smaller stores,” He says. “So part of the $200 million will go toward core, and part will go for value-add. It’s really dependant on the location of the property because that’s one thin you can never change.”
In the case of a value-add, Roe says Pine Tree Commercial will play a substantial role in moving the property forward. “It’s the perfect marriage with development and acquisition,” he says. “Inevitably things change in retail; having a development leasing division allows us to react to a loss of an anchor. It could be a remodel, re-tenant or a tear down., and now we have all the tools in-house to remedy the situation.”
As for the timing of the new company, Peter Borzak and Berry Herring, founders of Pine Tree Commercial Realty, say although the market may be a little overheated, there are always good opportunities. They say the company is planning on investing $100 million during the next 12 months in ground-up development projects.
“It’s always a good time to be doing this,” Borzak tells GlobeSt.com. “Regardless of where market is, there are always opportunities with tenants expanding and needing to relocate. We don’t have to put a certain amount of money out the door. We will only pursue deals we’re excited about with tenant relations or experience.
By Dana Dubriwny