Shannon Waltchack’s first commercial real estate fund, SW Neighborhood Centers I (SWNC I) raised $25 million to acquire 10 neighborhood centers in target markets throughout the Southeast. The strategy is simple – invest in centers with serviced-based tenants in dense, affluent areas to deliver stable cash-flow and capital appreciation to investors.
What are Neighborhood Centers?
Neighborhood Centers are unanchored retail strips located at key intersections with retail bays for service-oriented tenants. The preferred tenant mix includes necessity-focused businesses, such as medical-retail, restaurants and salons, which provide resilience against internet retailers. These properties are located in growing cities and follow precise demographics and physical requirements. Shannon Waltchack is proud to work with small businesses, local “mom n’ pop shops” and franchisees, managing the properties in-house and engaging with local brokerage relationships in each city to maintain strong occupancies.
Pandemic Resilience
The investment strategy was put to the test during the COVID-19 pandemic. The 12 months following the start of the pandemic solidified SWNC’s investment strategy, as rent collections remained at pre-pandemic levels and occupancies reached an all-time high. The internet-proof strategy proved to be a sustainable product throughout the evolving crisis. Check out our COVID-19 Case Study for more information on our approach to managing real estate assets throughout the pandemic.
After the success of SWNC I, SW launched its second real estate fund, SW Neighborhood Centers II (SWNC II). With an increased goal of raising $30 million, SWNC II is currently seeking to purchase its next slate of neighborhood centers across the country, with three acquisitions already in the portfolio in Homewood, AL, Mount Pleasant, WI and just this week in Ormond Beach, FL.
Watch the short video below for a deeper understanding of our strategy and preferred property demographics.
Latest Acquisition
The latest addition to SWNC, II is South Forty Plaza, a 26,000 SF neighborhood center in Ormond Beach, FL. The center fits the SWNC strategy with its high traffic volume, diverse tenant mix and strong surrounding population. SWNC II has two additional properties in the pipeline that are intended to be added to the portfolio before the year ends.
“We are actively seeking new investors and new properties for SWNC II. We are energized about our continued expansion and look forward to connecting with brokers across the country to find the next slate of neighborhood centers to add to the portfolio,” said SW Partner Derek Waltchack.
If you are interested in receiving more information about investing in SWNC II, please contact Director of Investments Tyler Hose.
