UNITED STATES - Former principals of Somera Capital Management have created a new player in the real estate manager market called Pacific Retail Capital Partners

Steve Plenge and Michael Miller are creating a new company with $200m (€129.2m) in funding from Lubert-Adler as part of the $2.6bn commingled fund, Lubert-Adler Real Estate Fund VI.

Plenge believes the timing is perfect to be investing in B quality regional malls, as he said: "We don't think there is going to be a lot of competition for this kind of real estate given where the economy and retail sales are. There should be some strong investment opportunities for us."

Pacific Retail Capital is looking to invest in properties built in the 1970s and 1980s holding around 100 acres of land as Plenge says these type of assets are now capital-starved and need a new kind of tenant mix.

The duo previously conducted similar deals at Somera, including one involving the University Mall in Tampa, Florida, which was previously owned by Glimcher Realty Trust and needed a capital infusion and additional types of tenants.

Pacific Retail Capital already has three transactions under letter of intent, and one of these deals should be closing soon.

The firm is looking for deals in a variety of markets including Florida, Texas, California and Chicago, worth in the range of $75m-€125m.

The relationship with Lubert-Adler is non-discretionary so both parties must agree on every transaction.

Leverage on the deals is expected to be around 70%, to generate leveraged IRR in the mid teens over a three to seven-year period.

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