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Shining a light on PE ownership.

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SL

Slatten Ranch Shopping Center

Real estate
PE-OWNED

PE-OWNED

Acquired by Sterling Organization

View PE Firm Profile

What PE Will Likely Do

Predictions

Increased rents for tenants as a result of the sale-leaseback strategy, leading to some smaller businesses being priced out or forced to close

MODERATEBased on: Sterling Organization's track record of using sale-leaseback strategies to extract value from real estate assets, which often leads to increased costs for tenants

Reduced maintenance and upkeep of common areas and shared facilities within the shopping center, leading to a gradual decline in the overall appearance and cleanliness of the property

MODERATEBased on: The industry playbook showing that private equity firms in the retail real estate sector commonly defer maintenance and reduce staffing to cut costs

Potential reductions in security and customer service staff, resulting in a less safe and welcoming environment for shoppers

MODERATEBased on: The lack of any recorded failures for Sterling Organization, suggesting they are adept at executing their strategies

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Announcements about 'repositioning' the shopping center and 'improving efficiency'

6-12 monthsYOU ARE HERE

“6 to 12 months months”

First round of tenant turnover as rents are increased, along with some visible reductions in maintenance and upkeep

12-24 months

“12 to 24 months months”

Noticeable decline in the overall quality and attractiveness of the shopping center, with some tenants leaving and vacant storefronts becoming more prevalent

Similar Cases

Other companies that followed a similar path after PE acquisition

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130 Second Street in Gowanus

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29–33 Avenue des Champs-Élysées in Paris

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Unknown·N/A

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What You Can Do

Take Action

Actions

  • Shoppers should be prepared for potential changes in the overall shopping experience, such as less maintenance, reduced security, and potential tenant turnover

  • Consumers may want to research alternative shopping options in the area in case their preferred stores or services at Slatten Ranch Shopping Center are forced to close or relocate

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

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"Slatten Ranch Shopping Center is now PE-owned. Here's what that means for you."