Profile: Powerhouse Developer & Buyer
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Powerhouse Developer & Buyer

by Joe Dyton

Since 1991, DLC Management has become one of the nation’s largest privately-held owner and operators of shopping centers. The company’s portfolio includes 50 shopping centers and 9.7 million sq.ft. of retail space throughout 20 states. The company has a long-term approach to managing shopping centers and looks to create and deliver value to its tenants, partners and investors. DLC puts its emphasis on anchored neighborhood and community centers. The company’s centers are concentrated throughout the northeastern, southeastern, Midwestern and Mid-Atlantic regions of the U.S., with special attention paid to urban core and infill locations.

		DLC is aggressively pursuing acquisitions. The company moves quickly with its due diligence. It closes rapidly once a viable acquisition is selected with a track record of access to debt and equity capital without committee or third party approvals. DLC’s relationships with lenders such as GE Capital, GMAC, J.P. Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley and Wachovia, among others, allows it to secure attractive financing terms. DLC’s leasing team is committed to making sure every retailer in its portfolio is 100% satisfied. It believes in working with its tenants to help them attain and exceed their goals and projections. DLC has no limitations on whom it helps either. Whether the company is a local “mom and pop” store, a growing regional player or a perennial national powerhouse, DLC will work to find it a great location within its portfolio. The company is hands-on and always willing to meet the retailer at its store or headquarters to get a better idea about its business and fully understand its specific requirements.   Michael Cohen CLS Executive Vice President, Leasing
		DLC also takes pride in working with retailers even after the lease is signed. The company’s inhouse management group is experienced in handling complex tenant-buildouts and will do everything to make sure the retailer’s space is finished on time and within budget. During opening and even beforehand, retailers will have access to DLC’s on-the-ground leasing and property management representatives who will respond immediately to a retailer’s needs. The company boasts more than 185 years of senior management experience, which puts it in prime position to successfully operate shopping centers through the roller coaster cycles in real estate, credit market and retailing environments. The company also maintains expert in-house capabilities to support all critical real estate, financial legal and reporting services, guided by a hands-on, proactive management style. DLC also offers expertise in leasing, acquisitions and dispositions, financial structuring, legal, property management, asset management, construction management, third party management and urban retail development. Adam Ifshin President, DLC Managment Corp. Principal, DLC UrbanCore

DLC has used its expertise to redevelop several shopping centers. Last year, the company redeveloped Beach Shopping Center in Peekskill, NY. DLC acquired the center in 2000 and planned to renovate it and develop more retail space and lease the parts of the center that were vacant. Unfortunately , the center’s anchor, Grand Union, declared bankruptcy. Rather than throw in the towel, DLC put together a 25-year lease with Stop & Shop supermarket to give the grocer a 65,000 sq.ft. store and redeveloped the rest of the center. This included relocating CVS to a 12,150 sq.ft. build-to-suit pad site as well as the relocation of seven inline tenants. The company received approvals from the city of Peekskill, Westchester County and the New York Department of Transportation to add a signalized entrance to the center and obtained all of the required state environmental approvals in just six months. Now the Peekskill community and an array of retailers, including GNC, Household Finance, Jembro, Radio Shack, Subway and Tuesday Morning are reaping the benefits of the redeveloped center. Meanwhile, DLC created more than $25 million of incremental value through the retenanting of the project.

DLC also put its magic touch on Spring Valley Marketplace in Spring Valley, NY. DLC acquired the property in 1999. The center is located on the NY State Thruway, about 25 miles north of Manhattan and less than 12 miles from the company’s headquarters. Despite the center’s almost nonexistent leasing activity, the fact that a two million sq.ft. mall was opening nearby and two of the center’s anchors declaring bankruptcy, DLC saw a good opportunity. It realized that the center was situated in a highly visible location on a heavily traveled thruway. Once the company was able to convince retailers that the market was geographically broader and economically deeper than what had been assumed, success followed. DLC managed to bring Target and Christmas Tree Shops to the shopping center, along with T.J. Maxx, David’s Bridal, Carter’s, Catherines, GameStop, Nine West and Yankee Candle as inline tenants. In addition, one of the center’s former anchors, ShopRite, vacated and in turn DLC subdivided the 60,000 sq.ft. supermarket and recently signed a lease with Bed Bath & Beyond to occupy 35,000 sq.ft. and has a lease out for remaining space with a prominent national retailer.

In its tradition of turning around centers, DLC also acquired Williamsburg Shopping Center in Williamsburg, VA. The company acquired the center in 2001, with a vision of generating valueadded returns throughout 94,000 sq.ft. of belowmarket anchor leases. The company was attracted to the center’s infill location, strong zoning protection and its access to the hidden demographics of four million annual tourists and 8,300 students and faculty at the nearby College of William & Mary. DLC’s challenge in the acquisition was trying to find the right replacement retailers for two below-market anchors that comprised almost 40% of the center. The company’s problem was solved when it agreed to lease 32,000 sq.ft. to Stein Mart. The company then put its focus on leasing the remaining 62,000 sq.ft. anchor box. The company decided to split the box in two to better serve the community and leased 30,000 sq.ft. to Marshalls. DLC is currently in the process of leasing the remaining space to another national retailer, which would complete the re-tenanting of the center. In three years, the company was able to increase the center’s value by more than 30%.

The company also has its hands in what was the Levittown Shopping Center in Bucks County, PA. DLC razed the former center and is redeveloping the site as the Levittown Town Center, which is now anchored by Home Depot, while the company is in process of signing a lease with Redner’s Supermarket. When it’s fully built out, the center will encompass approximately 460,000 sq.ft. For more information, contact Adam Ifshin or Michael Cohen, DLC Management Corp., 580 White Plains Road, Tarrytown, NY 10591; 914- 631-3131, Fax 914-631-6533; Web site: www.dlcmgmt.com.