Note: This segment is also available for streaming on platforms like Spotify and Apple Podcasts.
"Within Reason with Mike Matson" is a well-regarded radio talk show hosted by Mike Matson on News Radio KMAN. Known for his in-depth conversations with community leaders and experts, Matson delves into issues impacting Manhattan, Kansas, and its surrounding areas.
In this instance, he interviewed Andy Weiner, CEO of RockStep Capital, which acquired the Manhattan Town Center Mall two and a half years ago. Gina Snyder, Executive Director of Downtown Manhattan Incorporated, joined the discussion and offered her perspective on the mall's relationship with the downtown community and the evolving retail landscape.
Understanding The RockStep Model
As a company specializing in shopping center investments, RockStep Capital has successfully expanded its footprint over the past three decades to 11 states. Their strategy? To focus on secondary and tertiary markets where local partnerships and community engagement are at the heart of every decision.
Andy expanded on this in the interview with Mike Matson:
"RockStep Capital is a shopping center investment company that invests in markets like Manhattan around the country, only shopping centers and in what we call secondary, tertiary hometown markets. And we currently have assets in 11 states and we've been doing this 28 years. Before that, I ran operations for a chain of 159 clothing stores. So grew up in retail, love retail and love hometowns."
Unlike many investment firms, RockStep's approach includes collaborating with local investors and institutions to create a sense of shared ownership and pride. This philosophy is exemplified by their work at Manhattan Town Center Mall.
"In Manhattan, we have a great group of local business leaders who are part of the ownership of this property. K State Bank, along with another bank out in First National Bank in Hutchinson, Kansas, are our lenders. It's all about community and we have a fund that's called the HomeTown America I Fund and we invest in properties like this around the country."
The Power Of Community Partnerships
According to Weiner, the RockStep team recognizes that their success is directly tied to the communities they invest in. By partnering with local investors, RockStep gains valuable insights into each market's unique needs and priorities.
"It's all about community. So local investors guide us on issues that are community related. Those are issues with the city, with incentives, entitlements with property taxes. Our local investors often are on the boards of the community college or the hospital district or the economic development district. And so many times an enclosed mall can be converted or reduced in terms of the amount of retail and other stuff can go there. So these local investors effectively are deputized leasing agents for alternative uses because they help us identify other needs in the community."
The Manhattan Town Center Mall's location on city-owned land creates a rare opportunity for collaboration. This partnership has played a critical role in RockStep's ongoing revitalization efforts.
"The city has been extremely cooperative. City leadership, city staff have been cooperative with us. Now when you look at an enclosed mall, there's different strategies for an enclosed mall. This city in Manhattan, there is so much demand for retail that it doesn't need to modify how it operates."
Navigating The Evolving Retail Landscape
Many malls have struggled with the rise of online shopping, particularly Amazon. Andy addressed the impact of online shopping, particularly Amazon, and how resilient retailers are finding ways to remain competitive.
"Amazon, along with COVID-19, really destroyed the weak retailers. Those that have survived have figured out their own e-commerce strategy and they're able to protect their market share against Amazon and in some cases grow it. They've got their e-commerce distribution centers, they sometimes distribute from their stores. They have a great app and they have a fleet of bricks and mortar stores that absolutely protects and helps these retailers reduce the cost of new customer acquisition. So having a store is the lowest cost way to acquire new customers, and if you don't have a store, eventually it becomes prohibitive and uneconomical to acquire new customers."
Above all, the strength of the Manhattan Town Center Mall’s retail ecosystem has allowed RockStep Capital to fill vacancies and provide tenants with favorable, competitive rental rates.
Progress And Future Ambitions
The RockStep Capital's team at Manhattan Town Center Mall has already yielded remarkable results, which Andy Weiner expanded on.
"We bought this property with 19 vacancies. We have filled 12 of them, we have seven left, and they will be filled this year. So we are actively negotiating with two tenants right now, but effectively we've got seven opportunities. We provide low competitive rents. We're very competitive to alternatives in the market."
Additionally, The RockStep team is always looking forward. The potential for mixed-use development is on their radar, and Andy Weiner expresses excitement about the future's possibilities.
"Over time, there could be an opportunity to put hotel and residential in parts of the parking lot and, right now, the parking lot is being used for existing tenants, and over time, you can negotiate with existing tenants to release part of the parking lot that can be used for alternative type of use. So the long-term vision, I'm talking 10 to 20 years down the road, is to eventually have either restaurants or hotels or multifamily in parts of the parking lot along with the retail and restaurants."
The Community Perspective: Downtown Manhattan Incorporated
Gina Snyder, Executive Director of Downtown Manhattan Incorporated, also joined the conversation to provide her perspective on the mall's importance to the community. She explored this with Mike Matson in detail:
"I give a lot of credit to our city leadership 40 years ago when this was all brewing and coming to fruition. I think it was genius to anchor downtown in that way."
However, with progress comes disagreements and bumps in the road. Snyder mentioned that at the time of the change, it was somewhat controversial, and some people still state that they have never set foot inside the mall because they disagreed with or felt displaced by this progress.
Snyder emphasized the mall's unique character and its place within the community.
"I think, as Mr. Wiener said, we have local investors in the mall, and I believe that those folks absolutely have a love of downtown, but they also have a love of community, and they understand that the mall is integral to our economic, our microcosm that we have going on at the city center."
Looking Ahead With RockStep Capital
Weiner explained that RockStep Capital is tremendously proud of its progress at Manhattan Town Center Mall. Their community-centric approach, dedication to revitalization, and focus on long-term growth continue to drive the company forward. Weiner is excited about the future and remains committed to working closely with the Manhattan community to enhance the vibrancy and success of this beloved local asset.
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