SharpLaunch – In the era of social and physical distancing, 3D virtual tours are becoming more prevalent to help aid during the sell/lease decision making process for commercial properties. Virtual tours are digital recreations of a physical space, be it an office, retail space or industrial warehouse, that allow leads to get a sense of a property before spending time to tour it in person. See Capstone Advisors’ La Jolla office property, The Ivanhoe, featured as an example of integrating Matterport virtual technology online in SharpLaunch’s feature…Read More Here
Commercial Property Executive – With so many measures aimed at slowing the spread of the novel coronavirus—such as social distancing, shelter-in-place orders and travel restrictions—the retail sector is going through its toughest period since the Great Recession. Several mall owners shuttered their properties a month ago and the financial impact on retail tenants “has been devastating,” according to Capstone Advisors Founder & President Alex Zikakis.
He has been in the retail business for almost 25 years, overseeing a full range of real estate services for enclosed regional malls, open air malls, neighborhood and community centers. In the interview below, he shares his insights on what it takes to cope with the outbreak and reveals his strategy to limit the impact of COVID-19 on his business…Read the Full Interview
Chicago Morning Star – The impacts of the COVID-19 pandemic are not limited to the physical health of US residents. The economic health of the US is also badly impacted by the virus outbreak. The stock market has fallen over 33% percent from its February highs. Unemployment is also expected to rise by more than 20% in the US due to the coronavirus outbreak.
Alex Zikakis, the founder and president of Capstone Advisors, said, “The impact of the virus on the commercial real estate market has been dramatic so far.” The practice of social distancing in the US has put pressure on retail businesses. Read More
REBusiness Online – The coronavirus pandemic (COVID-19) has not only impacted the physical health of humans around the world, but the health of the U.S. economy as well. While the stock market rallied over 11 percent on Tuesday, its biggest jump in nearly 90 years, on news that a federal stimulus bill to rescue the economy from the coronavirus was imminent, the Dow Jones Industrial Average was still down 31 percent from its most recent high at the closing bell. Meanwhile, economists say weekly jobless claims — new filings for unemployment insurance — could hit 2 million or 3 million. The Labor Department will release the latest figures on Thursday morning. Before the coronavirus hit, weekly jobless claims hovered around 215,000. Though no one knows the true fallout yet — because we’re still in the thick of it.
“The impact of the crisis on the commercial real estate market has been dramatic so far, and we are only in the beginning,” says Alex Zikakis, president and founder of Capstone Advisors, a real estate investment, development and asset management company in Carlsbad, Calif. Read More
Insights from CRE Owners on How Technology Has Transformed Their Business
“Real estate has been one of the largest lagging industries to be transformed by technology at the organizational level. We are now finally seeing high quality solutions being offered which improve our ability to gain operating and organizational efficiency thanks to large amount of VC capital flowing into the real estate tech space. While in the past we have been almost exclusively focused at working ‘in the business’ at the asset level, we are now fully engaged on working ‘on our business’ at the organizational level.” – Alex Zikakis
The cycle is mature—so mature that many are predicting a recession in the next 12 months. The mature cycle has meant peak pricing in many top markets, and as a result, investors have fled to secondary markets to chase yield, and Phoenix has been a favorite. In prior cycles, Phoenix has been a final play before a downturn hit, but this time, things may be different.
“One of my real estate investor buddies once said to me, ‘Phoenix, where California money goes to die at the end of every real estate cycle.’ There is no doubt that historically Phoenix has been a boom and bust market,” Ira Schwartz, COO of Capstone Advisors, tells GlobeSt.com…Read More
Building a Recession-Proof Business
While we are not overly concerned about a severe impending economic downturn, we are absolutely taking steps to recession-proof our organization and our holdings. Most of the time what causes a real estate investor the greatest pain in an economic downturn is debt maturity during a time of illiquidity or poor debt coverage. October 2019.
Capstone Advisors is continuing to expand its Phoenix retail portfolio. The firm has exited out of a shopping center in San Diego and purchased its fifth retail property in Phoenix. Capstone purchased 18,037 square feet of shop space at the 250,000-square-foot Tuscano Town Center in Phoenix. The property is 100% leased to 12 tenants, and is an ideal fit for Capstone’s Phoenix business plan.
“We are focused on two primary product types in Phoenix, retail and multi-tenant flex-industrial. This is our fifth current project in that market,” Ira Schwartz, COO of Capstone Advisors, tells GlobeSt.com…Read More
CARLSBAD, California – September 10, 2019 – Sabre Springs Plaza, a 15,038-square-foot retail center located at the intersection of Poway Road and Springbrook Drive in the Sabre Springs community of San Diego, was sold by an affiliate of Capstone Advisors for $6.8 million to a Southern California-based private investor. Sabre Springs Plaza had been owned and operated by Capstone Advisors since the firm acquired the property in 2015. Sabre Springs Plaza was the second retail center sale in the past 14 months for the Carlsbad-based real estate firm.
“We are pleased to have successfully executed our business plan for Sabre Springs Plaza, which included correcting operational inefficiencies to improve the center’s performance. With these adjustments and an investment in complementary capital improvements, we know the property is ideally positioned to serve the Sabre Springs and Poway communities for many years to come,” said Ira Schwartz, COO of Capstone Advisors…(Read More)
CARLSBAD, California – September 9, 2019 – A Capstone Advisors affiliate has acquired 18,037 square feet of shop space located within Tuscano Towne Center in southwest Phoenix, Arizona. The full 250,331 square-foot property is located on the southwest corner of W. Lower Buckeye Road and S. 75th Avenue in the Tuscano master planned community.
The property becomes Capstone’s fifth commercial asset in Phoenix and the firm’s fourth acquisition in the past 12 months. “Capstone is excited to add to its holdings in Phoenix. Tuscano Towne Center is located in one of Phoenix’s fastest growing submarkets. It has an excellent mix of local, regional and national brands who thrive due to the property’s location and the adjacent Walmart Supercenter. We are very pleased to add this great asset to our portfolio,” said Ira Schwartz, COO of Capstone Advisors… (Read More)