LBX Investments

PORTFOLIO

Southeastern Neighborhood Shopping Centers

Investors have been largely running from retail. The relentless rise of Amazon, combined with doomsday headlines and retailer bankruptcies, has led to chaos within the sector. In 2015 we rolled up our sleeves and began studying the industry, and our findings have been inconsistent with the larger, negative narrative played out in the media. Discounters, some grocers, and service providers compete well with e-commerce and have shown significant growth and stability through multiple market cycles. Additionally, many Southeastern markets - such as Nashville, Atlanta, and Charlotte - are attracting employers and growing at a faster rate than global gateway cities such as New York and San Francisco. Real estate valuations in these Southeastern markets are also favorable, on a relative basis, to those larger markets. Since early 2016, pursuing this strategy of acquiring well-located assets in these markets, principals of LBX have acquired 18 shopping centers, comprising more than 2.7 million square feet and approximately $232.8 million in current market value.