Executive of the Month: Joel Gorjian of Gorjian Acquisitions and Namdar Realty Group acquires 18 retail properties nationwide

Joel Gorjian, Gorjian Acquisitions and Namdar
Realty Group

Great Neck, NY The New York Real Estate Journal recently sat down with 24-year old commercial real estate investor, Joel Gorjian of Gorjian Acquisitions and Namdar Realty Group.

Q: Over the last several years, you have became one of the most active new investors both on Long Island and nationwide, despite your young age of only 24. Please tell our readers what attracted you to real estate?

A: I have always been interested in commercial real estate and grew up surrounded by family members who were both investors and developers. As a child, I used to listen to conversations between my parents about planning new neighborhood shopping centers on Long Island and searching for just the right tenants to fulfill the needs of local residents. I couldn’t wait to get involved and started on the very bottom of the ladder at 17, helping with maintenance of properties, collecting rents, and addressing tenants’ concerns.

I received my bachelors degree in accounting from Queens College last year and today serve as vice president of acquisitions and dispositions at Namdar Realty Group and also run my own investment firm, Gorjian Acquisitions. I am currently planning another real estate-related venture, which will be announced in the next few weeks.

Q. You employ an unusually simplified acquisition target review process that sets you apart from the majority of other investors in the country. Please tell us about it.

A: Based on my experience with more than 30 properties acquired around the country over the last several years as well as operating hundreds of shopping centers already in our portfolio, I have developed a much-simplified review process that includes only 15 financial and market position metrics. This approach allows us to very quickly review the potential acquisition targets and close the deals. I have closed several acquisitions in only three business days and these properties have proven to be excellent long-term assets.

For example, one of the excellent indicators of viability of shopping centers is the performance of dollar stores. If they produce the national average of above-average revenues, that’s an indicator that the shopping center has good potential, even if it has not been yet realized by the current owner. We have an excellent network of relationships with both national and regional retailers and are very experienced in bringing value to newly acquired assets.

We often target properties in special conditions, such as retiring owners, landlords unable to meet their mortgage obligations, and properties with high vacancies or in less than perfect physical plant condition. Our rapid review process allows sellers to quickly dispose of their assets that other investors had declined. We buy properties in all-cash transactions and are not afraid of challenging conditions as long as there is a long-term viability. This approach makes us very different from other investors and attracts sellers from across the country.

529 Lake Avenue - St. James, N.Y.

Q. What were your latest acquisitions, both on Long Island and nationally?

A: I have structured and executed 18 transactions nationwide so far this year, valued in excess of $100 million. I am currently negotiating 14 additional deals. Most recently, I acquired the 529 Lake Ave. mixed-use retail/residential property in St. James on Long Island. This property is located in a high-traffic business and retail corridor within the affluent hamlet of St. James, and across the street from a public elementary school. One of the three retail spaces is currently vacant and we are reviewing potential retail and service tenants that would fit well into both the neighborhood and the existing tenant mix.

My acquisitions elsewhere in the U.S. have mostly focused on the Midwest and Southeast markets. These were some of the recent transaction:

State and Mapleton Plaza shopping center - Columbus, IN

• The State and Mapleton Plaza neighborhood shopping center in Columbus, IN: The value of the transaction was in excess of $1 million. The 19,425 s/f property is fully occupied, with a CVS pharmacy and Dollar General store serving as anchor tenants. The acquisition was an all-cash, off-market transaction.

Burlington Coat Factory, Salem Plaza shopping center - Dayton, OH

• The Salem Plaza in Dayton, OH: The 141,616 s/f mall houses Burlington Coat Factory as the anchor tenant.

• The 6,600 s/f 5900 St. Claire Avenue single-tenant retail property in Cleveland, occupied by a Key Bank branch.

• The 8522 Old State Rd. property in Holly Hill, SC: The one-story, single-tenant building is currently leased by Advance Auto Parts.

• The 201,000 s/f Webster Plaza shopping center in Webster, MA: The property, although 92% leased, had a dark anchor tenant. The owner, a publicly traded firm, decided to dispose of the Webster Plaza because of the dark space and a significant loan. Other major tenants included BIG Kmart, Family Dollar, and Rent-A-Center. This transaction was closed in only three business days.