Store Builder stays in game by being nimble
MIDLAND ATLANTIC HAS MAJOR RETAILERS AMONG CLIENTS
Source: Cincinnati Enquirer, Business Section, Saturday, May 31, 2008
Quick, dedicated decisions. That's what it takes to stay ahead in the competitive world of retail development, says John Silverman, managing principal and founder of Kenwood-based Midland Atlantic.
A developer and manager of more than 4 million square feet of shopping malls and retail strips, Midland Atlantic's portfolio includes a lucrative mix of retail-based projects that span 10 states.
"We've done it all," said Silverman. "We've developed a regional mall, build-to-suits for Starbucks, and everything that you can imagine in the middle."
Locally, the firm's footprint has been planted in some of the most desirable retail markets in Greater Cincinnati and Northern Kentucky.
Its recent work includes popular shopping destinations such as Voice of America Centre in West Chester and the recently opened Kenwood Place, across from Kenwood Towne Centre.
Just 10 years ago, the firm was a new name to the local development scene, with some fortunate ties to Greater Cincinnati. As a partner with St. Louis-based Midland Group - once the largest developer of Kroger-anchored shopping centers in the country - Silverman came to Cincinnati in 1997.
Midland Group had just been acquired by Jacksonville-based Regency Centers for $230 million. The sale included a pipeline of 21 Kroger shopping centers, mostly in the region.
"I had a six-month obligation to transition all of our Midland Kroger-based projects to Regency," Silverman said.
After the job was finished, Silverman decided to stay in Cincinnati and go into business for himself. He launched Midland Atlantic in 1998.
"Our primary focus at the time was to expand on our relationship with Kroger and begin to diversify by working with some other national retailers that we already had relationships with," he said.
Today the firm boasts a client-base -in addition to Kroger - that includes Target, JC Penney and TJ Maxx.
The firm, which has 40 employees in three states, continues to expand its reach, in spite of a tough economy.
"We go where our anchor tenants ask us to go," Silverman said. "We've developed projects from South Dakota to North Carolina and from Michigan to Mississippi."
LIQUID CAPITAL
By letting its tenants direct its investments, Midland Atlantic has cranked out roughly $150 million in new development activity each year, Silverman said. "We've been growing at a pretty good clip, and I don't see a reason for that to change."
In recent years, the company has sold several multi-million dollar developments, a move that has given it a competitive edge over other developers battling the industry's economic woes.
Its most recent sale came in February when the firm raked in $90 million after unloading a 70 acre retail development in Durham, N.C.
"We've been very fortunate that we sold a fair amount of real estate during a very good time to be selling," said Ryan Kyte, the firm's COO and CFO.
"It's provided us the liquidity we need given the credit crunch and given us a clear advantage as we go after larger transactions," he said. "Even if we aren't doing an all-cash transaction, our lenders are very satisfied with our contribution."
Kyte declined to say just how much cash the company is sitting on today. but the company is advertising that it's seeking to buy up existing retail developments in the Midwest and Southeast that have a minimum price of $3 million. The program requirements, as posted on the company's Web site, call for the deals to be "all-cash" transactions that close within 45 days.
The program is part of Midland's acquisitions division, which Silverman expects to be a $40 million-a-year venture for the company.
While the company may move quickly on its acquisitions, it will spend time and money getting new developments off the ground, Silverman said.
For three years, the firm has been working to break ground on a Union retail development anchored by Target.
"It's been a very difficult zoning project," Silverman said. "I bet we've spent $300,000 there so far on presentations, preparing the site and on option money for the land owner - all to show Boone County and the city of Union how great of a project this is going to be."
Earlier this month, the Boone County Planning Commission voted to reject the firm's plans for the project, despite an earlier vote of support from a commission sub-committee.
Silverman said he plans to approach the city of Union in hopes of reversing the decision.
LOCAL PROJECTS
With a development footprint that spans 4 million square feet in 10 states, 10 year old Midland Atlantic is rising quickly as a small firm with a big reach in the world of retail-based real estate.
Among its projects are:
Source: Cincinnati Enquirer, Business Section, Saturday, May 31, 2008
Quick, dedicated decisions. That's what it takes to stay ahead in the competitive world of retail development, says John Silverman, managing principal and founder of Kenwood-based Midland Atlantic.
A developer and manager of more than 4 million square feet of shopping malls and retail strips, Midland Atlantic's portfolio includes a lucrative mix of retail-based projects that span 10 states.
"We've done it all," said Silverman. "We've developed a regional mall, build-to-suits for Starbucks, and everything that you can imagine in the middle."
Locally, the firm's footprint has been planted in some of the most desirable retail markets in Greater Cincinnati and Northern Kentucky.
Its recent work includes popular shopping destinations such as Voice of America Centre in West Chester and the recently opened Kenwood Place, across from Kenwood Towne Centre.
Just 10 years ago, the firm was a new name to the local development scene, with some fortunate ties to Greater Cincinnati. As a partner with St. Louis-based Midland Group - once the largest developer of Kroger-anchored shopping centers in the country - Silverman came to Cincinnati in 1997.
Midland Group had just been acquired by Jacksonville-based Regency Centers for $230 million. The sale included a pipeline of 21 Kroger shopping centers, mostly in the region.
"I had a six-month obligation to transition all of our Midland Kroger-based projects to Regency," Silverman said.
After the job was finished, Silverman decided to stay in Cincinnati and go into business for himself. He launched Midland Atlantic in 1998.
"Our primary focus at the time was to expand on our relationship with Kroger and begin to diversify by working with some other national retailers that we already had relationships with," he said.
Today the firm boasts a client-base -in addition to Kroger - that includes Target, JC Penney and TJ Maxx.
The firm, which has 40 employees in three states, continues to expand its reach, in spite of a tough economy.
"We go where our anchor tenants ask us to go," Silverman said. "We've developed projects from South Dakota to North Carolina and from Michigan to Mississippi."
LIQUID CAPITAL
By letting its tenants direct its investments, Midland Atlantic has cranked out roughly $150 million in new development activity each year, Silverman said. "We've been growing at a pretty good clip, and I don't see a reason for that to change."
In recent years, the company has sold several multi-million dollar developments, a move that has given it a competitive edge over other developers battling the industry's economic woes.
Its most recent sale came in February when the firm raked in $90 million after unloading a 70 acre retail development in Durham, N.C.
"We've been very fortunate that we sold a fair amount of real estate during a very good time to be selling," said Ryan Kyte, the firm's COO and CFO.
"It's provided us the liquidity we need given the credit crunch and given us a clear advantage as we go after larger transactions," he said. "Even if we aren't doing an all-cash transaction, our lenders are very satisfied with our contribution."
Kyte declined to say just how much cash the company is sitting on today. but the company is advertising that it's seeking to buy up existing retail developments in the Midwest and Southeast that have a minimum price of $3 million. The program requirements, as posted on the company's Web site, call for the deals to be "all-cash" transactions that close within 45 days.
The program is part of Midland's acquisitions division, which Silverman expects to be a $40 million-a-year venture for the company.
While the company may move quickly on its acquisitions, it will spend time and money getting new developments off the ground, Silverman said.
For three years, the firm has been working to break ground on a Union retail development anchored by Target.
"It's been a very difficult zoning project," Silverman said. "I bet we've spent $300,000 there so far on presentations, preparing the site and on option money for the land owner - all to show Boone County and the city of Union how great of a project this is going to be."
Earlier this month, the Boone County Planning Commission voted to reject the firm's plans for the project, despite an earlier vote of support from a commission sub-committee.
Silverman said he plans to approach the city of Union in hopes of reversing the decision.
LOCAL PROJECTS
With a development footprint that spans 4 million square feet in 10 states, 10 year old Midland Atlantic is rising quickly as a small firm with a big reach in the world of retail-based real estate.
Among its projects are:
- Voice of America Centre, a 450,000 square foot retail center in West Chester Township, which includes TJ Maxx, Office Depot, Petsmart, Michael's, Linen N' Things and Pier 1 Imports.
- Kenwood Place, a 78,000 square foot, upscale strip across from Kenwood Towne Centre. Tenants include Henredon Furniture, Down Lite, M. Hopple & Co., Deck the Walls, Calico Corners, Mattress Firm, Diamonds Rock, Drexel Heritage Furniture, T-Mobile and Dewey's Pizza.
- Sycamore Crossing, a 60,000 square foot retail center in Kenwood that the firm redeveloped in 2006. Tenants include Trader Joe's and David's Bridal.
- Tylersville Farm, an 80,000 square foot development under construction in West Chester that will boast LA Fitness as its anchor.
- The Galleria, a proposed retail development in Union that would include 200,000 square feet of retail, with a Target store as its anchor. Midland hopes to overturn a Boone County Planning Commission vote made earlier this month to reject the project.
