RockStep Capital Founder and President Andy Weiner was recently a featured speaker on The Alternative Investing Club livestream, where he presented the exciting investment opportunity his team found in Lake Charles, Louisiana: the Southgate shopping center. But this wasn’t just another pitch. Attendees received a deep dive into Weiner’s investment philosophy, market strategy, and real estate fundamentals honed over 28 years.
The Alternative Investing Club is a virtual community of investors gathering weekly to explore opportunities outside the traditional stock market. Focused on real estate, tax strategy, and private alternatives, the club features real-world practitioners who share deals and insight instead of theory.
The Investment: Southgate Shopping Center
Located in the southwest corner of Louisiana, the Southgate Shopping Center is a 166,000-square-foot open-air, grocery-anchored retail center in Lake Charles. The property is 90.8% occupied, features high-credit tenants like Market Basket, Books-A-Million, Office Depot, and Dollar Tree, and includes 14,000 square feet of leasing upside.
But what sets this property apart is its recent rebirth. As Weiner explained:
“Hurricane Laura demolished the center in 2020. It was completely rebuilt—new roof, new HVAC, new façade, brand-new interiors. The owner spent $32 million to rebuild it using insurance proceeds. And we’re buying it for $20.2 million. So we’re acquiring it at about 55% to 60% of replacement cost. That’s just unheard of.”
In a market where retail development is stagnant and construction costs are high, buying a completely reconstructed center for nearly half of what it would cost to build a new one presents a rare value proposition.
Why Did RockStep Choose Lake Charles?
Lake Charles isn’t just another small town. It’s a regional hub with multiple economic engines. It’s home to McNeese State University, sits near major casino resorts that draw millions from Southeast Texas, and is on the cusp of major industrial expansion.
“There’s a $10 billion LNG terminal being built directly west of Lake Charles,” Weiner told attendees. “My wife actually worked on that deal. She was general counsel at a company here in Houston and helped get that terminal approved and sold to an Australian company. So I’m personally familiar with that market.”
Lake Charles is also a city that Andy Weiner knows well.
“I’ve been to Lake Charles over 50 times. Our family’s clothing business, Wiener’s Stores, had a location right there. I opened it. I supervised it. I’ve watched this market evolve for decades.”
The Numbers Behind The Opportunity
RockStep is projecting a 12% IRR, 1.7x equity multiple, and 8% average cash-on-cash return over a five-year hold. The company has conservatively underwritten modest rent growth and assumes only three of the four vacant spaces will lease—beginning not in year one, but in year two.
“We always underwrite a base case,” Weiner explained. “That means we’re not putting in rosy projections or best-case scenarios. We look at the deal as it sits, conservatively. And then we identify potential upsides separately—like leasing the vacant space, renewing tenants at market rents, or replacing an anchor like Office Depot at a higher rate. But none of that goes into our underwriting.”
This disciplined methodology is central to RockStep’s reputation. Over nearly three decades, the firm has acquired or developed nearly 10 million square feet across 11 states. Additionally, RockStep Capital has never returned a property to a lender or had a capital call after closing.
The Appeal Of Retail Real Estate In 2025
The Southgate deal is emblematic of broader trends RockStep sees in retail real estate.
“Amazon combined with COVID killed off the weak retailers,” Weiner said. “What’s left are retailers that figured it out. They’ve got brick-and-mortar networks, strong e-commerce platforms, and killer apps that tie it all together. They’re growing market share. They’re strong financially. And they’re expanding (100, 200 stores a year) into a retail inventory that isn’t growing.”
Retail development has dropped to historic lows, creating a supply-demand imbalance in favor of property owners.
“If you own second-generation shopping centers at a massive discount to replacement cost, you’ve got something valuable. And the retailers know it.”
Another advantage: positive leverage.
“We’re buying this deal at an 8.4% cap rate and borrowing at around 6.75%. That’s positive leverage. You’re enhancing your returns with debt. Compare that to a multifamily deal in a gateway market, where you might be buying at a 5.5 cap and borrowing at 6.5—now you’re hurting your returns. That’s negative leverage. In retail, we’re still in positive territory.”
Why HomeTown Markets Truly Matter
For RockStep, “Hometown America” isn’t a buzzword. It’s a framework. The firm focuses on communities under 950,000 in population with solid fundamentals and quality-of-life factors: lower costs, good schools, community pride, and strong local leadership.
“These markets have drivers. Tourism, healthcare, government, military, or a major employer. Lake Charles checks every box.”
And because these markets are often overlooked by institutional investors, RockStep is able to buy high-credit tenants at below-market rents and generate cash flow from day one.
“This isn’t a value-add grind,” he said. “It’s a stabilized, safe, long-term cash flow play with upside potential.”
Options For Interested Investors
Investors can participate in Southgate in two ways:
1. Direct Deal Investment
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Minimum investment: $250,000
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Preferred return: 8%
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Profit split: 80/20 (LP/GP)
2. Hometown America Fund
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Minimum investment: $100,000
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Preferred return: 8.5% (higher for large investments)
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Profit split: 75/25
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Fund will include Southgate and 4–6 additional properties
Weiner himself is contributing a minimum of $1 million to the fund.
“I’m not just pitching this,” he said. “I’m invested alongside you.”
RockStep's Culture: The Secret To Sustained Performance
Perhaps what makes RockStep Capital truly unique is its internal culture. The company operates by a set of 25 core behaviors, or “RockSteps,” which every employee is expected to live by.
“RockStep isn’t just our name. It’s a dance move,” Weiner explained. “It means pivoting, staying nimble, listening to the rhythm of the market. We even use it as a verb: ‘We’ve got a problem—we need to RockStep.’”
Each week, the entire company, from interns to executives, gathers virtually to reflect on one of these behaviors.
“This week’s RockStep was ‘Invest in Relationships,’” Weiner shared. “Someone on the team writes an essay, leads a discussion, and then we all talk about what that principle means for us personally and professionally.”
This emphasis on culture, discipline, and integrity translates into strong investor outcomes.
Final Thoughts: A Rare Opportunity With Immediate Yield
In closing, Andy Weiner made it clear that Southgate is not just another asset, but a reflection of everything RockStep stands for.
“In today’s market, with all its volatility, it’s rare to find something this clean. A brand-new asset. Grocery-anchored. 90% leased. In a growing market. At a massive discount to replacement cost. And with day-one cash flow.”
“It’s the kind of deal that helps you sleep at night.”
For investors seeking durable income, conservative underwriting, and exposure to high-credit retail tenants in real hometowns, Southgate Shopping Center might be the perfect fit.
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