Don Tepman, widely known as "StripMallGuy" on social media, has highlighted a period of significant activity for his real estate firm, University Avenue Partners, now operating as TownCentre Capital. The company, specializing in the acquisition and revitalization of strip malls, announced it has been "especially busy the last couple years" in its efforts to enhance properties and lease vacancies to local businesses. This comes as the broader strip mall sector demonstrates strong market fundamentals and increasing demand.Data provided by University Avenue Partners
Tepman, who recently unveiled his identity after years of anonymity as the influential "StripMallGuy" online persona, stated in a recent tweet, "We didn't invent strip malls. We just try to do our best to leave them a little nicer than how we found them, and lease the vacancies to great local businesses." This philosophy underpins the firm's strategy of investing in Class B retail properties, often those with deferred maintenance or existing vacancies, and transforming them into thriving community hubs.
University Avenue Partners, founded by Tepman, has successfully acquired 37 properties and raised approximately $150 million in investor capital since its inception. The firm's current fund targets $100 million in acquisitions, with 25% already deployed, indicating active investment and expansion. This deployment equates to approximately $25 million in recent acquisitions, contributing to the firm's increased activity.
The company's focus on neighborhood and community strip centers aligns with current market trends. Recent data indicates that strip center real estate investment trusts (REITs) saw leased occupancy rates of 95.3% in the first quarter of 2023, a level not seen in eight years. Analysts project continued strength in 2024, with retail availability rates expected to fall to a record-low 4.6% due to a scarcity of new construction and sustained demand.
This robust market environment is partly driven by a shift in retailer strategy, with many traditionally mall-based retailers seeking smaller-format, open-air suburban centers. Furthermore, the increasing consumer preference for supporting local businesses and the convenience offered by strip malls contribute to their appeal. University Avenue Partners capitalizes on this demand by revitalizing properties and attracting diverse local tenants, reinforcing the economic vitality of the communities they serve.