Kenneth Bernstein on capital markets
From Retail Trends with Kenneth Bernstein · · James Nelson NYC
“We utilize private capital and we utilize the public market; there are some points in time where both are open and active and there are times where it's painful and both are shut. The public markets are reopening which is exciting and the private markets are settling down and I would argue reopening as well.”
On , Kenneth Bernstein, President, Chief Executive Officer & Trustee at ACADIA REALTY TRUST, spoke about capital markets during Retail Trends with Kenneth Bernstein on James Nelson NYC.
About Kenneth Bernstein
Kenneth Bernstein, president and CEO of Acadia Realty Trust, has discussed the evolution of retail real estate in several recent interviews. He stated that the COVID-19 pandemic was a "body blow" to the industry, but noted that by late 2021 rent collections in Acadia's portfolio had recovered to 90%. Bernstein described the shift toward omnichannel retailing, saying that by 2019 he felt "online was part of omni-channel" and that "bricks and mortar retail is the most profitable channel in an omnichannel world." He also commented on the economics of e-commerce, noting that "customer acquisition is not free" and that free delivery and returns created costs that retailers are now pushing back against. Bernstein has also addressed the current investment environment, saying that "our industry is interest rate capital dependent" and that "investing right now is tricky because borrowing costs have risen significantly." He described Acadia's strategy of focusing on "dense High Street retail" in markets such as Washington D.C. to Boston and downtown Chicago, and using a dual platform of public and private capital. Bernstein emphasized the importance of "common sense" in underwriting, advising that investors should "put your phone and calculator aside initially" and understand the rationale behind a deal. He also outlined four principles he said have guided his company for 25 years: "Integrity, intensity, innovation, and intelligence."
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