Frequently asked questions
About Black Gate
We acquire underperforming neighborhood strip centers — properties suffering from deferred maintenance, poor management, or weak tenant mix — and transform them into well-managed, profitable assets. We also handle tenant lease negotiations to ensure a healthy and reliable tenant mix.
Neighborhood strip centers are the small shopping centers you see in established residential and commercial areas — typically 20,000 to 60,000 square feet, anchored by service businesses like healthcare providers, fitness studios, salons, restaurants, and local retailers. These are the everyday shopping centers that serve community needs.
That's a common misconception. Big-box retail and enclosed malls are struggling, but neighborhood strip centers are thriving. They currently have the lowest vacancy rates in history because they're filled with service-oriented businesses that can't be replaced by e-commerce — chiropractors, dentists, salons, fitness studios, and local restaurants. When people ask how retail is doing, our honest answer is: it's never been better.
We increase the net operating income of each property through a combination of strategies: addressing deferred maintenance, implementing professional management, improving tenant mix, raising rents to market rates, and reducing operating expenses. We're strategic and hands-on in our approach.
Yes. Unlike many investment firms, we handle leasing and asset management in-house. This gives us control over the most critical components of our business plan and allows us to execute quickly and effectively.
We only acquire existing properties. New construction costs far exceed what market rents can support in neighborhood retail, which is part of why this sector has such strong fundamentals — there's virtually no new supply coming to market.
We started in 2018 and refined our business model in 2020 to focus exclusively on neighborhood strip centers.
We've acquired $115 million in retail real estate to date, with a goal of reaching $250 million in acquisitions over the next five years. We've successfully completed several investments and have many more in progress.
Three things: deep sector expertise (our team comes from commercial real estate brokerage backgrounds), hands-on execution (we do our own leasing and management), and straightforward Midwestern values (we're reliable and easy to work with). We know neighborhood strip centers inside and out.
Our in-house leasing team has deep market knowledge and strong tenant and broker relationships. We're strategic about pricing and tenant mix, and we market aggressively. That said, vacancies are part of real estate — we underwrite conservatively and have contingency plans built into our business models.
Neighborhood strip centers proved resilient during COVID because they're filled with essential, service-oriented businesses. We focus on properties in strong locations with solid demographics, and we acquire at prices that provide cushion for market fluctuations.
Visit our Contact page to reach out. Whether you're an investor, broker, property seller, or prospective tenant, we'd like to hear from you.
For Investors
Our investments typically range from $50,000 to $200,000 per property. We structure deals on a property-by-property basis, allowing investors to participate in specific acquisitions that match their investment criteria.
We target investor returns of 14% to 18% over a three-to-five-year hold period. These returns come from a combination of cash flow during the hold period and appreciation at sale.
We typically hold properties for three to five years. We're not building a portfolio to hold forever — we acquire, execute our value-add business plan, and sell to realize returns for our investors.
Our typical investor is an entrepreneur or professional using real estate as a diversification strategy within their broader investment portfolio.
We provide quarterly reports to all investors and maintain an investor portal where you can track performance in real time. We believe in transparent, ongoing communication throughout the investment period.
Yes. The majority of our investor base consists of repeat investors who have had positive experiences with previous deals and continue to invest in new opportunities as they become available.
For Brokers and Sellers
We acquire neighborhood strip centers, typically 20,000-60,000 square feet. We're looking for properties with deferred maintenance, management challenges, or suboptimal tenant mix — situations where our expertise can create significant value.
We have strong relationships with lenders and an established track record of closing on time. When we make an offer, sellers and brokers can trust we'll execute as promised.
Yes. We're actively seeking acquisition opportunities as we work toward our goal of $250 million in acquisitions over the next five years.
For Prospective Tenants
We're looking for quality service-oriented businesses and local operators: healthcare providers, fitness studios, restaurants, personal services, professional offices, and specialty retail. We're strategic about tenant mix and look for businesses that complement each other.
We're active, engaged owners who maintain properties to high standards and respond quickly when issues arise. We're not absentee landlords or passive managers — we're investing in these properties for the long term, which means we're invested in your success.
We currently own and manage 19 neighborhood shopping centers across five Midwest states.
Visit our Properties page to browse available spaces, or contact our leasing team directly for detailed information about specific locations.