Rod Kritsberg, managing partner of New York-based K Property Group, believes that the time is right to buy retail in the city. The firm focuses on high-demand neighborhoods in Manhattan, seeking opportunities to acquire prime, high street retail – but only if the company can make a deal at a steep discount from previous market highs.
“After a long period of hyper growth that led to inflated prices and rents we’re looking at blank canvas of opportunities that would have been unthinkable five years ago,” Kritsberg told REFI Radio. “Capital markets outpaced leasing markets significantly, which meant that owners today can’t take discounts on leases because their basis is so high. But if you can acquire a property at a 40% discount and underwrite a long vacancy period, you can find yourself with an excellent opportunity.”