Spotlight On: Benjamin Hakimian, CEO, Hakimian Holdings
June 2024 — In an interview with Invest:, Benjamin Hakimian, CEO of Hakimian Holdings, emphasized the company’s strategic focus on prime locations and in-house management, which have led to high occupancy rates and successful property revitalization, contributing significantly to local community enhancement. Hakimian also discussed upcoming opportunities to integrate healthcare services into their shopping centers, leveraging Jacksonville’s population growth.
What are Hakimian Holdings’ contributions to the Jacksonville area over the past year?
Over the past year, we’ve acquired multiple properties, bringing our overall portfolio approximately 2.5 million square feet in Northeast Florida, ranging from Daytona to Kingsland, GA. Our focus has been on enhancing the shopping experience and upgrading the aesthetics and structure of our properties. We manage all our properties directly, allowing us to modernize them and attract higher-quality national tenants, thus revitalizing the areas and better serving the community.
What developments has Hakimian Holdings’ been involved with this past year?
Last year, we completed several projects. One is a 115,000-square-foot property on Beach Boulevard, which is a promenade shopping center. After the center was fully renovated, we were able to attract some new major tenants. Another project is the 245 Riverside, a 138,000-square-foot office tower, where we upgraded the common areas and refreshed the tenant mix. Lastly, we recently acquired the Corridors of Ponte Vedra which we will rename as “Gates of Ponte Vedra”, making it our 38th shopping center in the Northeast Florida-Southeast Georgia region.
What trends are you observing in amenities within the office sector in Jacksonville?
Our shopping centers are nearly fully occupied, and the signature locations of our office buildings maintain low vacancies and high occupancy. However, the broader U.S. office sector has faced challenges, particularly in office parks lacking exposure and visibility. Despite these challenges, our projects have performed well.
How does Hakimian Holdings’ position itself in the real estate market?
We are heavily invested in the market, with about 90% of our portfolio here. We’re extremely satisfied as most of our spaces are nearly 100% occupied. This success is largely due to the prime locations we’ve chosen and the strong relationships we maintain with both tenants and clients in our shopping centers. We prioritize maintaining these centers in top condition, which directly contributes to their excellent performance.
How does a multifaceted approach to real estate contribute to your company’s growth?
Our hands-on approach is vital to our success. We manage everything in-house—from leasing to property management, legal to accounting—which enables us to have direct oversight. We’re actively involved daily across various properties, allowing us to manage more aggressively. This intensive management leads to better outcomes and higher-performing assets. Our proactive business philosophy is crucial, especially in contrasting our success with properties that suffer under less attentive management.
What challenges is Hakimian Holdings currently facing?
The primary challenge is sourcing properties that align with our portfolio. We actively seek out and acquire as many properties as possible that fit our model, anticipating more opportunities in the future.
Are there specific sectors where you are seeing increased demand for your spaces?
One sector we’re integrating more into our shopping centers is healthcare. Traditionally, healthcare services were in office parks, but now they’re moving into shopping centers. This allows people to visit a doctor while also grabbing a sandwich or getting their hair and nails done. It’s about multitasking in an easily accessible location, unlike office parks which can be challenging to get to and lack convenient parking.
Where do you see opportunities in Jacksonville?
The primary opportunity is the significant influx of people moving to Florida, particularly to Jacksonville, for its favorable climate and lifestyle. Jacksonville remains more affordable compared to other Florida cities like Miami or Orlando. This influx drives a higher demand for housing, shopping, and services like healthcare and salons. Consequently, our tenants are experiencing substantial sales growth.
With the influx of residents into the region, what are the infrastructure challenges?
Infrastructure is a challenge, particularly with the increasing population. Unlike older cities with established but congested infrastructures, Jacksonville’s newer systems allow for better flow around rather than through the city. This helps in managing the influx and maintaining mobility, which is less problematic here compared to more congested cities.
How have the current economic challenges impacted your operations?
The economic landscape, with its shifts and challenges, is something we’re actively navigating. High interest rates and ongoing inflation play a role. Interestingly, while the interest rates are higher now compared to a few years ago, it’s not all negative. Higher interest rates often lead to lower prices, which can balance the market. We’re keenly watching for opportunities, especially as properties financed at lower rates a few years ago come up for refinancing at much higher current rates. This situation might prompt some owners to sell rather than refinance, presenting us with potential deals.
Are there any projects that you’re excited about in the near future?
We have several projects in the pipeline. We recently discussed a potential acquisition of a grocery-anchored shopping center. Additionally, we’re evaluating two other shopping centers owned by banks. Over the next six months, we anticipate considering up to three more deals.
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