LOS ANGELES--(
BUSINESS WIRE)--TPG Capital and Caruso Capital Partners, LLC, an affiliate of Caruso Affiliated, have formed a joint venture to invest up to $750 million of debt and equity in opportunistic investments in retail centers and mixed-use properties in select markets in the western United States. Rick Caruso, President and CEO of Caruso Affiliated, will serve as CEO and Stephen Rader, President of Caruso Capital, will serve as President of the newly formed entity, Caruso-TPG Partners. Caruso and TPG will have equal representation on the Board of Directors.
“This is a unique opportunity to partner with one of the most successful owners, developers and operators of retail and mixed-use real estate in the United States”
“This is a powerhouse combination of capital and experience unlike any other in the market to acquire and reposition underperforming properties,” said Caruso. “At Caruso, we have a proven track record and an in-house team of professionals with expertise in disciplines ranging from design and construction to leasing, marketing and property management – all the disciplines required to successfully execute this program. We found an ideal partner in TPG with its global investment experience and background in real estate, giving us a competitive advantage in securing top property opportunities in this depressed market,” he added.
Caruso-TPG Partners will target underperforming retail and mixed-use properties in mature markets where the Caruso team can apply its extensive knowledge and track record in creating exceptional retail and mixed-use environments. In addition, TPG’s portfolio encompasses thousands of retail locations, such as Neiman Marcus anchor sites, which adds distinctive sourcing and development experience to this joint venture.
“This is a unique opportunity to partner with one of the most successful owners, developers and operators of retail and mixed-use real estate in the United States,” said Kelvin Davis, TPG senior partner. “We look forward to working with Rick, Steve and the Caruso team to capitalize on attractive opportunities in the marketplace.”
TPG’s senior partners have extensive experience in real estate investing and the turnaround of distressed assets dating back to the early 1990s. In October 2009, TPG, in partnership with the FDIC and a group of investors, acquired a $4.5 billion portfolio of construction development loans and real estate owned (REO) assets formerly owned by Corus Bank, NA.
Acquisition opportunities may be submitted to Bryce Ross, Senior Director of Acquisitions, Caruso Capital Partners, at 323-900-8100.
About Caruso Capital
Caruso Capital was founded as a vehicle for acquiring assets as well as pursuing development and other market opportunities in the retail and mixed-use property type. Caruso Capital targets single assets, portfolios and development opportunities and leverages the experience that its parent company, Caruso Affiliated, has gained during 20 years of operations in the retail real estate industry. Caruso Capital is a separate entity that is aligned with but operates independently from Caruso Affiliated. Caruso Capital and Caruso-TPG Partners represent the first opportunity for investors to invest with Caruso in retail real estate. Stephen Rader, President of Caruso-TPG Partners, recently joined Caruso Capital and has an extensive background in private investing. Prior to joining Caruso he was co-founder and a Managing General Partner of private equity firms Clarity Partners, Clarity China, and Rader Reinfrank Investors. Clarity and its affiliates manage over $1 billion in capital and invest in a range of industries. Previously Rader was Managing General Partner in charge of investments for Chartwell Partners.
About Caruso Affiliated
Caruso Affiliated has created a portfolio of highly-regarded and top-performing retail and mixed-use properties. Over the last 20 years, the company has completed new developments as well as redevelopments and property repositioning throughout Southern California and, in the process, has redefined the retail industry by establishing new standards for successful retail environments. The company is recognized as one of the most innovative and prominent developers in the country. It has consistently demonstrated the ability to source, entitle, finance and complete difficult development and redevelopment projects with above market return on investment.
Caruso Affiliated’s tenants’ growth is approximately two times that of the largest publicly traded REITs and sales per square foot at Caruso properties are 75 percent higher than the national industry average. Caruso’s track record positions it to attract the top-performing and most sought after national and international retailers. Its retail properties are fully leased with many of its tenants ranking number one in their chains.
Caruso Affiliated’s portfolio of top performing retail centers includes The Grove in Los Angeles, The Americana at Brand in Glendale, the Waterside, Marina del Rey, The Promenade at Westlake, The Lakes at Thousand Oaks and The Commons at Calabasas. The firm also has several projects in development including The Shops at Santa Anita in Arcadia, 8500 Burton Way in Los Angeles, and the company’s first luxury destination resort – the Miramar in Montecito. The existing Caruso Affiliated portfolio of retail, mixed-use and lodging properties and certain developments will remain solely under the ownership and control of Caruso Affiliated.
About TPG Capital
TPG Capital is the global buyout group of TPG, a leading private investment firm founded in 1992 with approximately $48 billion of assets under management and offices in San Francisco, London, Hong Kong, New York, Fort Worth, Melbourne, Moscow, Mumbai, Paris, Luxembourg, Beijing, Shanghai, Singapore and Tokyo. TPG has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, joint ventures and restructurings. TPG seeks to invest in world-class franchises across a wide range of industries. Retail, consumer and real estate businesses constitute a core area of investment focus and expertise for TPG, including current or prior investments in Beringer Wines, Burger King, Debenhams, Harrah’s Entertainment, J.Crew, Kerry, Lenta, Mey Icki, Myer, Neiman Marcus, PETCO, ST Residential (formerly Corus Construction Ventures), and Strauss Coffee, among others.
