How should LPs evaluate retail real estate deals, especially when the strategy involves stabilized shopping centers and low leverage? In this episode, Paul Shannon is joined by Andy Weiner of RockStep Capital to walk through a real-life deal and answer questions from a panel of passive investors including expert LPs Pascal Wagner and Adam Cranmer.
Andy lays out his firm’s “hometown market” strategy, targeting power centers and neighborhood retail with national tenants in overlooked metros. He breaks down the underwriting, loan structure, and business plan behind a recently acquired asset and why retail investors should pay close attention to tenant quality, lease structures, and local relationships.
Our LP panel gets details on deal terms, downside protection, and risk-adjusted return, offering a front-row seat to the kind of conversation you should be having before wiring your funds.
Key Takeaways:
- How RockStep finds and underwrites stabilized shopping centers
- Why the team favors open-air retail over enclosed malls
- What lease terms and tenant types reduce risk
- How “hometown markets” create pricing advantages
- The role of low leverage and longer-term debt in today’s market
- When retail outperforms industrial and multifamily
- How to evaluate sponsor experience and alignment
- What passive investors should ask before funding a retail deal
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