As 2023 comes to a close, RockStep Capital is grateful to reflect upon a year marked by significant achievements and milestones. We acquired new properties, welcomed new team members and created a new fund while fulfilling our mission of providing shopping experiences that benefit the communities we invest in.
Manhattan Town Center Acquisition
One of our most noteworthy accomplishments of 2023 was the acquisition of Manhattan Town Center in Manhattan, Kansas. Located in the heart of downtown, the property encompasses more than 367,000 square feet of space with more than 50 small shops and full-service restaurants. As the only regional mall within a 50-mile radius, it serves as the centerpiece of Manhattan’s municipal business district and the region’s retail shopping district.
Launch of RockStep Fund I
To capitalize on the recent repricing of assets, RockStep introduced RockStep Fund I, a diversified closed-end fund utilizing data collected through 26 years of building, acquiring and operating retail. RockStep Fund I is a $250mm fund with a targeted 8% preferred return and 15+% IRR. Targeted expected returns in the Opportunistic and Core Plus retail segments are a 16-20% IRR and 12-15% IRR, respectively.
The existing properties in our portfolio served locals in 11 states through various community events and initiatives. Our premier property in New Orleans, Riverwalk Outlets, hosted Lundi Gras, Halloween Fest, Christmas tree and menorah lighting ceremonies, and other holiday events on Spanish Plaza for tourists and locals alike. Riverwalk’s food court is also now fully occupied by new local tenants and existing national brands, including Raising Cane’s Chicken Fingers, Pei Wei Asian Kitchen and Smoothie King. Uptown Janesville is working with the city of Janesville to construct Woodman’s Sports & Convention Center, a 136,000-square-foot sports complex. Knowing the positive impact this complex would make within the Janesville community, RockStep donated the parcel of land and vacant Sears building to the city.
Welcoming Five New Team Members
The RockStep family grew by five this year, and we’re grateful to add their expertise and commitment to upholding the RockStep Way to our team. Lyric Blake, Hector Cerrato, Mike Coontz, Kelly Lumbert, Brandy Olaniyan and Rose Shong: welcome to RockStep! These new additions further enrich the diverse talent pool that propels RockStep Capital forward.
Annual Company-Wide Meeting in New Orleans
Our year culminated in our annual company meeting held in the heart of New Orleans in November. It provided a valuable opportunity for our team members nationwide to connect and hear from long-time New Orleans real estate developer Darryl Berger and Liberty Bank & Trust Co. executives Alden McDonald and Ronnie Burns as they shared their stories and insights. We appreciate these three men who took time from their busy schedules to inspire the RockStep team.
RockStep Capital’s 2023 was full of progress and great memories. As we look toward 2024, RockStep remains poised for continued success and growth in the dynamic and ever-evolving world of retail investment.