Real estate is being considered in M&A transactions at unprecedented levels. A lack of new retail real estate development is causing some companies to buy leases and properties from bankrupt companies that are shedding assets. That shortage in development is also pushing up rents - something that's causing private equity owners and potential buyers to take a much closer look at a company's real-estate holdings, says A&G Realty Partners co-founder Andy Graiser. These days, companies need to analyze real estate in every retail M&A transaction, according to Graiser. Recent deals in which real estate played significant roles include: private equity firm Sycamore Partners LLC's acquisition of Jones Group Inc., the owner of the Nine West and Jones New York fashion brands; and DSW Inc.'s (NYSE: DSW) purchase of Town Shoes, a Toronto-based shoe purveyor.
How are private equity firms evaluating retail real-estate holdings?