Dynamic Developers
Robertson Properties Group has moved from developing on the sites of old drive-in movie theaters to acquiring raw land and infill sites for new developments.
Randall Shearin

Developing retail in the west isn't an easy task these days. Finding raw land in growing areas is next to impossible and infill sites are among the most competitive to purchase. Being a flexible player — being able to develop a number of different property types on parcels of varying sizes — is the key to finding sites for one western developer, Robertson Properties Group.

Shopping Center Business recently met with executives from Robertson Properties Group at the company's offices in Los Angeles. Present were Neil Haltrecht, president; John Manavian, vice president; Mark Miller, vice president, acquisitions and leasing; Jeffrey Koblentz, vice president; and Greg Swedelson, vice president, acquisitions and leasing.

When Shopping Center Business last met with Robertson Properties Group in 2001, the company was operating as an offshoot of Pacific Theatres. It had developed a number of shopping centers on the sites of Pacific's obsolete drive-in theaters. Over the last 4 years, Robertson Properties Group has transformed itself from a developer that concentrated mainly on redeveloping old drive-in theater sites to a full-fledged, ground-up retail developer.

“We have really moved into an acquisitions mode,” says Haltrecht. “We have acquired a lot of land in the west to develop and redevelop retail.”

Robertson's The Dome entertainment center in Hollywood, California.

But most of what Robertson does is far from the Hollywood glitz of The Dome. The company has developed neighborhood, power and lifestyle centers in towns like Anaheim, Thousand Oaks, Ventura and Westminster in California. The company is one of the largest developers for Kohl's in California, with four locations throughout Northern and Southern California.

Newbury Park Gateway, Newbury Park, California.

“We've moved from a mode of working our existing asset base to being aggressive and acquiring properties for development opportunities,” says Haltrecht. “We've been successful in building a good reputation in the markets that we're in, both with the tenants and the communities, so we are well received when we enter a new community.”

Robertson has developed several centers anchored by Lowe's Home Improvement Centers, and has been helpful to the North Carolina-based retailer in establishing a competitive edge in the west. The company is currently working on its fourth Lowe's-anchored center, in Kent, Washington, called Midway Towne Center. A groundbreaking is scheduled for this quarter.

To help its shift to acquisitions, Robertson's principals have had to change their roles as well. Greg Swedelson, who previously concentrated on handling the company's legal and leasing work, has now moved into more of an acquisitions role. Also, Mark Miller will continue spending most of his time sourcing acquisitions, so that two people will be dedicated to looking for new projects.

Anaheim Gateway, Anaheim, California.

“The site has the masterplan potential for a variety of office, retail or residential uses,” says Manavian. “It will probably end up being a mixed-use project.”   Robertson typically partners with multifamily or residential developers in these types of projects.

For its project along Kalakaua Avenue in Honolulu's Waikiki area, Robertson will again be developing a more tourist-oriented center, similar to The Dome. Again, it's something that fits the area and fits the opportunity that the market creates. The company is developing on the site of a former movie theater with unique architecture that was built in the 1930s. There was a feeling in the community that the theater would be missed since it was such a landmark, though it had not been operational in years. Instead, working with the city, Robertson is developing its project using the same tropical/art deco theme that the theater had. The architecture was duplicated, and the retailers were willing to work with the company to pick up some of the architectural references. Similarly, Robertson has received accolades for how it matched new development with the architecturally significant Cinerama Dome in Hollywood.

“Our projects are opportunity driven and market driven,” says Haltrecht. “We don't want to force a project on a market. We look at the opportunity and determine what is going to be the best fit for the tenants to succeed and make an impact on the community.”

If retail is not the best opportunity for a site, Robertson isn't afraid of that possibility either. In Orange County, the company originally pursued a retail project, but then realized that it could not build an appropriate center there. Instead, it has joint ventured with Archstone-Smith to develop an 800-unit multifamily project on the site.

Robertson is acquiring land and projects from 10 acres to 100 acres. The diversity in that size is a huge span, but one that will create a lot of opportunities for the company.

“Being flexible makes us open to a lot of opportunities from an acquisition standpoint,” says Manavian. “Because we're not cookie-cutter and we're open to a lot of different approaches, we're not stuck with strict criteria on land acquisitions. It opens us up to a lot of opportunities.”

Flexibility in acquisitions will also lead Robertson to new opportunities. If it is buying a site that is as large as 100 acres, and only 30 acres of that is fitting for retail, the company has the internal financial capacity to purchase the entire 100 acres. It can joint venture with a   multifamily or residential development partner to create an appropriate use for the remaining land.

Robertson has a broad network of brokers that it works with to find good sites and is always amenable to expanding that network. It also has good relationships with a variety of retailers of all types to fill its varying projects. Robertson handles all leasing in-house, but hires local brokers to handle the marketing, preliminary negotiations, and to determine the best tenants for a project. The company's projects are concentrated in Northern and Southern California, the Pacific Northwest and Hawaii.

As a growing company, Robertson has developed a   unique corporate culture. It applies a very respectful, integral approach to its relationships with outside brokers,   retailers and vendors.

“We are very relationship oriented and we don't use people in the process as means toward our getting a project,” says Haltrecht. “We believe in treating people not only as means, but as ends as well. We won't tie something up for our own selfish interests and then ditch it. If we're going to pursue something, it comes from a very authentic, genuine place; it's something we truly want to pursue.”

Since Robertson wants to develop special projects, just as it wants to develop the right center for the right site, it also wants to pick the right team for the project. Architects fit the projects they are designing. The local broker will have experience with similar developments and excellent local market knowledge. The general contractor will be the right one for the job.

“We carefully evaluate the contractor, architect and broker for every project we do,” says Koblentz. “While relationships are important to us, they are not the only thing we look at.   We want to build the best team so we can deliver the optimal project.”

With all of the company's land holdings and existing centers, as well as some smaller properties it owns, Robertson's portfolio totals more than 60 properties. This puts it in the rare position of being a patient player. Its equity in its properties also gives it power in the capital markets. Because of its leverage, the company can close deals without worry. It has the in-house financial and legal expertise to acquire quickly and close in days.

“We have a lot of capital we'd like to place,” says Haltrecht. “We have the discipline, however, of saying that we can place all of it or none of it. We're limited by the opportunities presented to us, not by the capital.”

Robertson Properties Group has been one of the largest developers for Kohl's in California, including this one which anchors Robertson's center in Ventura, California.

Robertson Properties Group is owned by Decurion Corporation, which also owns Pacific Theatres. Decurion owns a variety of businesses, from swap meets to bowling alleys. Robertson Properties Group is operated autonomously from the other company business units. Decurion has been around for more than 50 years, so similarly, Robertson is developing projects to hold. It wants to make sure that neighbors are happy and its relationships with them are positive because it is going to deal with them for a long time.

“We have an operating philosophy that encourages and elicits a respectful relationship,” says Miller. “At the completion of   a difficult transaction or development, we tend to part with everyone feeling comfortable with where we ended up and how we got there.”