Ben Mandell, CEO, Tricera Capital

Invest: sat down with Ben Mandell, CEO  and managing partner of Tricera Capital, to discuss how investor behavior, tenant demand, and deal structures are evolving in South Florida’s retail and mixed-use market, and the areas that offer greater opportunities. “South Florida still looks strong broadly, but when you think about total long-term upside, the cities of Miami, Fort Lauderdale, and West Palm Beach continue to offer the most potential, particularly in aggregate over the next  several cycles,” Mandell said.

How have investor expectations shifted over the past year in response to tighter capital markets and slower deal flow?

Over the last three years, investors have been more cautious. Capital is watching more than acting unless an opportunity is clearly distressed and priced at an attractive basis.

The deals that tend to pull capital off the sidelines are those where the capital stack is clearer, and the downside is better protected. Outside of that, investors are being patient and selective, waiting for pricing, debt terms, and risk-adjusted returns to align.

What are you seeing in terms of pricing and competition for retail and mixed-use assets in South Florida right now?

It feels like a handful of local firms like ours are driving much of the acquisition activity in Miami, particularly in retail and mixed-use. You still see groups from major markets outside Florida, but there is a stronger local presence than before.

That local advantage matters because knowing the streets, the tenants, and the day-to-day demand patterns is often what lets you underwrite more confidently when conditions are choppy.

In a higher-rate environment, how are value-add deals being structured differently to balance risk and return?

A shift from debt to equity is common. Investors want structures that prioritize protection while still leaving room for equity-like upside.

You are also seeing more creative capital stacks, including convertible notes and preferred equity positions. 

What kinds of assets or neighborhoods are drawing the most interest from investors right now, especially those focused on downside protection?

There really is no bad market in South Florida right now. Almost every pocket has eyeballs on it. The coastal markets still draw the most attention, but even areas farther west, including Doral and other pockets, are seeing strong demand, and entry is not easy because pricing has caught up quickly.

For downside protection, investors tend to prefer markets with mature infrastructure and a proven track record through prior cycles. 

Are retailers still expanding in today’s climate, and what concepts are proving most resilient?

There are many tenants looking to expand in South Florida. Tenant demand is real, but the key questions are rent and occupancy costs. Tenants and landlords are still working through what is realistic, especially given pre-COVID expectations that, in many cases, were not grounded in sustainable sales volumes.

The categories that are doing extremely well include service, convenience, and entertainment. The restaurant scene is also much more sophisticated than it used to be, but rapid growth has led to some oversaturation. The top concepts are doing extremely well, but when a market builds that quickly, not every concept can thrive at the same rent levels.

The broader point is that the customer base is here in a big way, and more affluence continues to move into the region. When you see multiple high-performing locations for major brands operating in close proximity without cannibalizing each other, it signals how much demand and density are truly here.

How has tenant demand changed across the urban retail landscape, especially for walkable mixed-use corridors?

South Florida has not changed much over the last five years; it varies by sub-market. Tenants still want density, walkability, and alignment with their customers. If their target demographics are concentrated and they do not yet have market share in that pocket, it comes down to sustainable occupancy cost, visibility, exposure, and location.

That preference is consistent with mature companies expanding in South Florida. Tenants want environments where customers can move easily between uses, where the street feels active, and where the surrounding mix supports repeat visits. Those fundamentals have been steady, even as the capital markets have shifted.

You mentioned downside protection earlier. Where do you see the most upside looking ahead across South Florida?

 Already answered same question prior. 

What impact are local policies, infrastructure investments, or zoning shifts having on the pace of urban redevelopment?

I would point first to the macro environment, because that has been the clearest driver. When interest rates rose sharply in 2022, capital moved to the sidelines and became more patient. Even with subsequent rate reductions, broader volatility has not unlocked major activity as many hoped.

On zoning and policy specifically, I tend to focus more on retail and hospitality than ground-up multifamily, where zoning shifts often play a bigger role. But there are still examples where a more pro-growth approach could help. Lincoln Road is one where different rules, regulations, and stronger city involvement would go a long way.

Washington Avenue is another corridor that, in my view, represents a major missed opportunity over the years. With better coordination, it could have been more dynamic and more connected, linking south of 5th Street up through Lincoln Road and tying activity nodes together more effectively.

Looking ahead, what are Tricera Capital’s main priorities in the Miami real estate market?

Being patient and finding the next growth neighborhood early is the priority. Wynwood is a good example of what that looks like. The goal is to identify the next pocket that the broader market may not yet see clearly, but that becomes clear when you are local, living in it, and breathing it day-to-day.

South Florida is a large metropolitan area, so we are also looking at growth pockets in Broward and West Palm, as well as opportunities in Miami. The key is to find markets where rents are still low relative to the density and the captive audience.

For retail and hospitality, sustainable sales volume is the anchor. We study the comp set and use our relationships to understand what tenants are producing in sales, and then work backward from a reasonable occupancy cost to determine what rent levels tenants can support. If market rent is 35 but tenants nearby are producing sales that support 55 to 60 at a healthy occupancy cost, that spread can signal an opportunity.

The strategy is to build enough scale, potentially five to ten properties in a targeted stretch, and then reset rent over time as the market matures and the tenant mix improves.