Shoppers of a rather peculiar breed flocked to the Jervis shopping center last week, and no, this isn’t a hipster flash mob. Up to 13 first-round offers landed on the table for this Dublin gem, which its owners, Paddy McKillen and Padraig Drayne, decided to sell off like yesterday’s fashion trends.
It’s worth noting that this is the first time our dear Jervis has been paraded around the market since its inception back in the 1990s, thanks to McKillen, Drayne, and Paschal Taggart—three names you probably won’t see on a reality show, but should probably be on your real estate radar. Just think of this as the shopping equivalent of a high school reunion for this once-cherished center.
The bidding war looked more like the opening scene of a reality show, with the notable players including the Comer Group, US property titan Hines, Peter Horgan’s Lugus Capital, Patron Capital, and David Goddard’s Lanthorn. No, the US never sent its actual property moguls; they just decided to invade our shopping centers instead.
Meanwhile, retail real estate has apparently gotten its groove back after the pandemic sent it spiraling into existential dread. Since the world became obsessed with online shopping, one would think traditional retail was as good as dead. Surprise! The brick-and-mortar stores decided they weren’t going down without a fight. According to various estate agents, retail made quite a comeback, claiming half the value of all property deals this year. It’s like watching a soap opera where the villain suddenly becomes the hero.
The EY Future Consumer Index releases shocking news that seven out of ten consumers would rather shop in person than online—because apparently, people still enjoy the tactile experience of venerating clothes they can’t afford. Jean McCabe, the CEO of Retail Excellence Ireland, reports customers are returning for the unmatched experience of buying overpriced merchandise while dodging other shoppers. Who knew social interaction was a part of retail?
Brendan McDowell, CEO of BPerfect Cosmetics, started his enterprise online before he opened 13 physical stores across the UK and Ireland. Yes, because nothing screams “success” quite like committing to a physical location in a world ripe for e-commerce distractions. McDowell snagged prime locations when many malls looked like they were stuck in a post-apocalyptic film set. Sounds like a savvy strategy; why wait to pay full price when you could negotiate your way to a bargain amidst the ghost town of vacated shops?
In today’s market, private equity is still lurking, seemingly practicing their poker face while wanting assets at a discount. It’s like a game of Monopoly, but with real money and very real consequences. The catch? Buyers want a bargain, but the “great deal” seems to be quietly turning into “I just want to get out of here with my dignity intact.”
The takeaway? Despite a sprinkle of doom and gloom reports on retail closures, the closing of high-street chains isn’t quite the endgame; it’s an unexpected renaissance for new entrants to scoop up the prime real estate and breathe life into vacant spots. The only thing missing right now is dramatic background music and a well-timed twist. Let’s hope all this excitement doesn’t result in a shopping center version of “Survivor.”
