Namdar Realty Group

Last updated

Namdar Realty Group
Company typePrivate [1]
IndustryRetail, real estate
Founded1999;26 years ago (1999) [2]
FounderIgal Namdar
Headquarters
Great Neck, New York [3]
,
United States
Products Shopping malls
Website namdarrealtygroup.com

Namdar Realty Group is a private, family-owned real estate investment trust based in Great Neck, New York. As of 2021, the company owns over 400 properties. [2] [4]

Contents

The company is most well-known for its ownership of over 100 shopping malls. Namdar's mall portfolio largely consists of "class B" and "class C" malls in small-to-midsize markets, many of which have been classified as dead or dying. [5] The company has been criticized for poor management of its mall properties, particularly in terms of deferred maintenance, being described in one lawsuit as an "absentee landlord with a reputation as a 'slumlord'". [6]

Strategy

Namdar's business strategy focuses on acquiring pre-built "class B" and "class C" malls in smaller markets. Because of their locations and current states, the malls are typically purchased in cash for around $5.3 million. [7] Once acquired, properties' maintenance spending is substantially reduced (up to 67% less than other malls), [8] [9] and store rents are lowered to avoid low vacancy rates. [8] The company will also often sell its malls' outparcels. [6] [9] Due to reduced maintenance and low acquisition costs, Namdar's capitalization rate averages 2-3 times that of a standard mall. [8]

Namdar's purchases are typically made with a partner firm, Mason Asset Management. [8] [6] Uber Capital Group, [10] Gorjian Acquistions, [11] and CH Capital Group [12] [13] have also been Namdar partners. Namdar's primary source of investment capital comes from bonds on the Tel Aviv Stock Exchange. [6] [9]

History

Namdar and Mason partnered to begin purchasing malls in 2012, with the first mall purchased being Desoto Square Mall in Bradenton, Florida. [8] Phillipsburg Mall in Warren County, New Jersey, was purchased from PREIT in 2013 for $11.5 million, with numerous subdivisions and sales later occurring including the anchor building housing Kohl's. [9] The roof at the former Sears at the Phillipsburg Mall would later collapse. [14] Lawsuits were ongoing in 2018 over lack of maintenance by Namdar of Regency Square Mall in Jacksonville, Florida. [2] [6] Voorhees Town Center in Voorhees Township, New Jersey, was having maintenance and security issues the same year. [6] Jennifer Furniture was purchased in June 2020 by John Garg and Namdar. [15] Namdar and Mason purchased most of the bankrupt Goodrich Quality Theaters chain in July 2020. [16] [17] Namdar was a partner in several New York City area property purchases in 2021. [18] [19]

Failed Bon-Ton purchase

Namdar was part of a group of investors who attempted to purchase The Bon-Ton from liquidation. The group also included DW Partners LP and Washington Prime Group. [1] [20] Due to a fee issue, the attempt failed, and Bon-Ton liquidated. [20] [21]

List of properties

Mall properties owned or managed by Namdar Realty Group as of 2024 include: [22] (This list is incomplete)

See also

References

  1. 1 2 Harris, Jon (April 10, 2018). "Who is the 'investor group' trying to save Bon-Ton from liquidation?". The Morning Call. Retrieved July 23, 2020.
  2. 1 2 3 Jones, Sasha (January 17, 2021). "Namdar Realty Group Plows Forward as Mall Properties Decay". The Real Deal New York. Retrieved February 10, 2021.
  3. ↑ "Company Overview of Namdar Realty Group LLC". Bloomberg. Bloomberg. Retrieved July 22, 2020.
  4. ↑ Duhart, Bill (July 22, 2019). "N.J. mall sold for half price to company that already owns a dying mall". NJ.com. Advance Local Media. Retrieved July 23, 2020.
  5. ↑ Urbanski, Al (June 9, 2020). "Namdar acquires Connecticut mall, its seventh this year". Chain Store Age. Retrieved July 23, 2020.
  6. 1 2 3 4 5 6 Adelman, Jacob (May 13, 2018). "Owner of former Echelon Mall, called 'slumlord' in Fla., taps overseas cash to become nation's biggest mall buyer". The Philadelphia Inquirer. Retrieved July 23, 2020.
  7. ↑ Wiltermuth, Joy (August 17, 2021). "Meet the Long Island guys who love unloved shopping malls". MarketWatch. Retrieved September 20, 2021.
  8. 1 2 3 4 5 Naidu, Richa; O'Donnell, Carl (June 26, 2018). "Who is making money from struggling U.S. malls?". Reuters. Retrieved July 23, 2020.
  9. 1 2 3 4 Harris, Jon (March 15, 2019). "What happened to the Phillipsburg Mall? Behind the vacancies and decay: A tough retail climate and low-investment owners". The Morning Call. Retrieved July 23, 2020.
  10. ↑ Ocasio, Victor (February 8, 2017). "24-year-old's firm arranges $7.8M in financing". Newsday. Retrieved July 23, 2020.
  11. ↑ "Executive of the Month: Joel Gorjian of Gorjian Acquisitions and Namdar Realty Group acquires 18 retail properties nationwide". New York Real Estate Journal. November 15, 2016. Retrieved July 23, 2020.
  12. ↑ Parton, Mitchell (February 25, 2020). "New York investors buy San Antonio mall worth $102M". San Antonio Business Journal. Retrieved October 12, 2020.
  13. ↑ Valigra, Lori (April 19, 2019). "Bangor Mall sells for $12.6 million, well below assessed value". Bangor Daily News. Retrieved October 12, 2020.
  14. ↑ Novak, Steve (October 23, 2019). "Bon-Ton gone: Another Phillipsburg Mall anchor is torn down (and ownership is silent)". Lehigh Valley Live. Retrieved July 23, 2020.
  15. ↑ Parrish, Tory N. (March 1, 2021). "Jennifer Furniture comes back to its LI roots". Newsday. Retrieved April 9, 2021.
  16. ↑ Moore, Lindsay (July 17, 2020). "Goodrich Quality Theaters will reopen after being bought out of bankruptcy". mlive. Advance Local Media. Retrieved July 23, 2020.
  17. ↑ "Goodrich Theaters purchased, reopening plans announced". 1450 99.7 WHTC. July 20, 2020. Retrieved July 23, 2020.
  18. ↑ White, Alexandra (June 24, 2021). "West Village Apartment Building Sells for $23.5 Million". The Real Deal New York. Retrieved September 20, 2021.
  19. ↑ "Klosed, Namdar buy five-building Hell's Kitchen portfolio for $26M". Real Estate Weekly. June 25, 2021. Retrieved September 20, 2021.
  20. 1 2 Lawder, Melanie (April 11, 2018). "Bon-Ton bankruptcy court ruling makes liquidation more likely". Milwaukee Business Journal. American City Business Journals. Retrieved July 23, 2020.
  21. ↑ Wilson, Marianne (April 18, 2018). "Bon-Ton Stores headed for liquidation". Chain Store Age. Retrieved July 23, 2020.
  22. ↑ "Namdar Realty Group Properties". Namdar Realty Group. Retrieved July 23, 2020.
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