Tag Archives: Black real estate developers

A Second Wind for Old Strips: Why HBCU Alumni Should Rethink Vintage Retail Centers

Posted on August 15, 2025 by hbcumoney | Leave a comment

“We don’t need to break ground to build power. Sometimes we just need to reclaim it.” – HBCU Money

In the 1990s and early 2000s, no suburban corner in America seemed complete without a modest retail strip: a nail salon, dry cleaner, small grocer, and maybe a local pizza joint. These seemingly unremarkable centers were the backbone of everyday commerce. Then came e-commerce, big box expansions, and shifting consumer behavior. The strip center fell out of fashion until now.

Today, those vintage retail strip centers are experiencing a renaissance. Commercial real estate investors, faced with skyrocketing construction costs and restrictive lending environments, are rediscovering the power and profitability of renovating existing assets. For HBCU alumni investors looking to blend stable returns with community impact, this moment presents a rare convergence of opportunity, efficiency, and cultural relevancy.

The Math Behind the Momentum

Construction costs for new retail buildings are ballooning. Estimates now range from $250 to $300 per square foot for ground-up construction sometimes higher in urban markets. At those prices, generating attractive returns is difficult unless you’re building luxury, destination retail with national anchor tenants. That’s not where the market is heading.

Instead, investors are realizing they can acquire and renovate vintage strip centers typically 20 to 40 years old for far less than the cost of new construction. Many are structurally sound but aesthetically dated or functionally obsolete. These properties often sit on prime real estate near transportation corridors, residential growth areas, or college campuses including HBCUs.

When repositioned with the right tenants, lighting, signage, and facades, vintage centers can achieve competitive rents without incurring the deep capital exposure of new construction. They offer a rent-to-cost ratio that works, especially in secondary and tertiary markets where demand for accessible neighborhood retail remains strong.

A Platform for Black Wealth Creation

For HBCU alumni who have traditionally been boxed out of Class A urban development deals, vintage strip centers represent an asset class that is:

Financially accessible
Culturally significant
Commercially viable

Most importantly, these assets can serve as anchors for Black-owned businesses, co-ops, and cultural hubs. While institutional investors often chase high-profile multifamily or office deals, retail strip centers in historically Black communities or near HBCUs are often overlooked providing a wedge for local or regional investors to step in.

A well-structured renovation project led by an HBCU graduate could transform a decaying strip into a vibrant ecosystem of barbershops, cafés, health providers, financial institutions, and coworking spaces all backed by the community, for the community.

Deferred Maintenance as Opportunity, Not Obstacle

Critics of strip centers often cite “deferred maintenance” as a red flag. And it’s true—many of these assets come with leaky roofs, outdated HVAC systems, and non-compliant ADA access. But that doesn’t make them unviable. It makes them undervalued.

Roof replacements, ADA compliance upgrades, lighting retrofits, parking lot resurfacing—these are all predictable costs that can be priced and phased. Investors willing to do their homework (or partner with experienced contractors) can use these improvements to negotiate purchase price reductions while still bringing total project costs well below new-build levels.

The essential formula is: fix what’s failing, elevate what’s usable, reimagine what’s tired. A fresh coat of paint and new signage can do wonders. Add in a few placemaking enhancements—like patio seating, bike racks, or public art and you’ve turned an afterthought into a destination.

The Tenant Mix Advantage

Unlike enclosed malls or big-box centers, strip malls thrive on tenant diversity and flexibility. This is where Black investors especially HBCU alumni with deep community ties—can bring unique vision.

Think beyond the nail salon and dry cleaner. Consider:

Black-owned coffee shops sourcing from Black farmers
Culinary incubators for emerging chefs and caterers
Financial coaching centers led by HBCU grads
Community health or dental clinics with wellness services
Retail cooperatives selling goods from multiple local makers

HBCU alumni investors can fill these strips not just with tenants, but with mission-aligned entrepreneurs. Lease agreements can include mentorship opportunities, cooperative ownership structures, or tenant improvement allowances tied to hiring local workers.

With a thoughtful mix, even a 20,000–30,000 square foot strip center can become an engine of neighborhood stability, economic inclusion, and generational wealth transfer.

Location, Location, Relevance

Vintage strip centers often sit on some of the most undervalued land in America. Many were built decades ago when zoning was looser, and land was cheaper. As communities grow outward and younger generations seek walkable, mixed-use environments those same centers are suddenly back in the middle of activity.

For HBCU alumni, the opportunity is even more focused. There are dozens of strip centers within walking or driving distance of HBCU campuses. Whether it’s off-campus student housing, faculty neighborhoods, or alumni communities, there is demand for:

Local dining and services
Affordable, accessible retail
Safe, well-lit gathering places
Commercial space for alumni-owned businesses

These are not Class A trophy assets, but they don’t need to be. They need to be functional, familiar, and forward-looking.

Risk and Repositioning

Of course, this isn’t a silver bullet. Not every vintage strip is a diamond in the rough. Investors must do real due diligence:

Structural Integrity – Always get a full building condition report. It’s the difference between a renovation and a rebuild.
Zoning Compliance – Changing use (i.e., turning part of a center into residential or entertainment space) may trigger zoning complications or code upgrades.
Environmental Reviews – Gas stations, dry cleaners, and auto shops may have left behind soil contamination. Budget for testing and potential remediation.
Tenant Rollover – Inheriting a strip with long-term leases at below-market rents may limit your flexibility.

But with risk comes return. A well-executed repositioning can yield cap rates of 7–9%, with additional upside through refinancing or disposition within 5–10 years.

Financing the Vision

Vintage retail projects are easier to finance than new builds but only if you approach the right lenders. Here’s where HBCU alumni can get creative:

CDFIs – Community Development Financial Institutions are often more flexible when the project has community benefits.
Opportunity Zones – Many vintage retail corridors are located in federally designated OZs, allowing access to tax-advantaged equity.
Historic Preservation Tax Credits – If the building qualifies, you may be eligible for 10–20% of renovation costs back in tax relief.
Municipal Partnerships – City economic development departments may offer grants, façade improvement programs, or forgivable loans.
Alumni Co-Investment Funds – Organize real estate investment clubs or syndicates among HBCU alumni. Use shared mission as shared capital.

A New Generation of Ownership

The big question isn’t whether vintage strip centers are viable. The question is: who will own them?

Will they be scooped up by private equity firms chasing yield? Or will HBCU alumni seize the chance to claim, restore, and transform these assets into hubs of Black entrepreneurship and economic mobility?

Real estate has always been about timing and this is the moment.

If we don’t buy the land, we don’t control the future. But if we do—wisely, collectively, strategically—then a strip center in the shadow of an HBCU can become the foundation of a Black economic dynasty.

Bottom Line

Old retail centers aren’t just retail they are real estate that still works. And right now, they’re one of the most underrated opportunities in commercial real estate.

With vision, planning, and mission-driven capital, HBCU alumni can turn tired retail into thriving centers of community wealth. Not every asset class allows you to be both landlord and legacy builder. But this one does.

The future isn’t always new. Sometimes, it’s renovated.

Disclaimer: This article was assisted by ChatGPT.

Powell’s Precarious Position: What HBCU Real Estate Investors Must Prepare For

Posted on July 25, 2025 by hbcumoney | Leave a comment

“Real estate power does not wait on political peace—it plans around it.” — HBCU Money

In commercial real estate, calm markets are often a prerequisite for aggressive growth. When volatility creeps in—especially from policy uncertainty—wise investors do not panic, but they do reposition. As rumors swirl that Federal Reserve Chair Jerome Powell may be removed from office before the end of his term, the CRE market is already baking in disruption. For HBCU alumni who invest in real estate, this moment demands attention, strategy, and foresight.

Although Powell’s official term runs through May 2026, and he can technically serve until 2028, market insiders are moving as if his exit could happen sooner—possibly under a second Trump administration. On July 17, GlobeSt.com reported that commercial real estate markets are increasingly factoring in political risk, with deal structures, loan pricing, and capital flows tightening ahead of any actual policy change.

For HBCU alumni who have spent years assembling rental portfolios, developing mixed-use properties, or backing Opportunity Zone projects near campuses, this isn’t abstract economic theory. This is cash flow, cap rates, and leverage dynamics in real time.

The Federal Reserve controls interest rates, liquidity, and lending standards—the lifeblood of commercial real estate. But the Chair also shapes expectations. Even the perception of instability at the Fed causes lenders to pull back and investors to reprice assets.

Jerome Powell has been seen as a steady hand, even when unpopular. His cautious rate policy—especially amid post-pandemic inflation—kept CRE markets from overheating or crashing. But if he’s ousted or disempowered, markets may expect more aggressive rate cuts under political pressure, a weakening dollar complicating international investment and supply chain costs, and a loss of institutional independence introducing a political lens into every Fed decision.

For HBCU alumni real estate investors, it means more volatile borrowing costs, reduced predictability in returns, and a need to re-evaluate how aggressively to pursue expansion or refinance.

Lenders are tightening up—and they are doing so before Powell is removed. That should concern anyone whose real estate model is sensitive to capital cost.

Bridge and construction loans are becoming harder to secure without pristine credit and higher equity injections. Cash-out refinances—especially for small portfolios—are being capped or delayed altogether. Development deals in low-income communities (where many HBCU graduates invest as a mission) are being scrutinized harder or shelved entirely.

As one investment banker told GlobeSt, “We’re seeing deals priced as if Powell’s out in six months, and we’re living in a very different rate environment.” It’s not a prediction—it’s a hedge. And HBCU alumni need to do the same.

If you’re invested in—or considering entering—any of the following CRE asset classes, Powell’s fate may shape your returns:

CRE Sector	Risk From Fed Instability
Multifamily	Rising rates hurt acquisitions and refinancing; rent growth may not keep up with cost of capital
Retail	Already under pressure from e-commerce; volatile rates shrink tenant pool and landlord leverage
Hospitality	Heavily exposed to economic cycles; refinancing becomes challenging if Fed turmoil hits
Industrial/Logistics	Generally stable, but price compression expected if Fed credibility drops
Development Projects	Most vulnerable—cost of capital, input inflation, and credit availability all in flux

HBCU alumni often favor multifamily and mixed-use in urban corridors. That makes preparation even more critical.

Let’s be clear: instability in the Fed disproportionately hurts Black real estate investors.

Less institutional capital backing Black developers means higher reliance on bank debt. Lower net worth and liquidity reserves can make it harder to endure tightened credit cycles. Projects in historically Black neighborhoods—often underinvested already—face greater scrutiny from conservative lenders during uncertain times. And Black investors are more likely to reinvest locally, meaning pullbacks hit community wealth and revitalization efforts harder.

If you’re financing student housing near Howard, renovating a historic property near Southern, or redeveloping land near Fort Valley State, you may suddenly find banks “reassessing” your application—not because of your deal, but because of Washington.

HBCU alumni have a legacy of building through adversity. This moment demands no less. Key investor moves right now include:

Renegotiate your debt terms while rates are still predictable. If your loans mature in 2026 or 2027, the window to lock in current rates or secure extensions is closing. Powell’s tenure—and potential replacement—will shape forward rate curves. Beat the volatility while you still can.

Shift to fixed-rate debt. Adjustable-rate debt was cheap two years ago. Now it’s a ticking time bomb. Consider refinancing into fixed-rate debt, even at a slight premium, to gain stability and prevent future cash flow disruptions.

Expand your lender relationships. Do not depend on one or two institutions. Build ties with Black-owned banks, CDFIs, and credit unions aligned with HBCU values. These institutions may have more mission-aligned flexibility if traditional banks tighten up.

Build a liquidity cushion. Discipline now prevents desperation later. Liquidity is the real hedge during economic uncertainty—especially if tenants default, contractors raise costs, or refinance windows close.

Delay discretionary projects. This is the time to tighten pro formas, not push for maximum leverage. If a deal still pencils at 9% debt, proceed. If it only works at 6%, wait.

Pool capital. Use alumni associations and real estate clubs to form investment syndicates. One investor may get denied a $5M deal. Five alumni together might get approved for $25M. Leverage unity, scale, and relationships.

Crisis also presents acquisition opportunities. There will be distressed sellers needing to offload assets quickly, developers unable to complete projects, and landlords who can’t refinance expiring loans. HBCU alumni, especially those with capital or credit, should keep an eye out. Joint ventures among alumni can create scale and deploy capital when others retreat. Use this time to buy smart, not fast.

Beyond Powell himself, it’s the Fed’s credibility that gives investors confidence to commit capital to 10–30 year projects. If a new Chair appears beholden to political pressure, markets may price in new risks to long-term bonds, accelerate inflation fears, and depress asset values. That would slow not just your next project—but the next generation’s.

That is why HBCU alumni must take this seriously, not just as investors—but as stewards of intergenerational wealth.

HBCU institutions also have a role to play. They can create alumni investment syndicates that provide deal flow and capital. They can offer discounted land or property near campus to alumni developers. They can develop relationships with mission-driven lenders and introduce alumni projects for financing. And they can host economic briefings and real estate strategy sessions to keep their alumni sharp and agile in rapidly changing markets.

Colleges like Tuskegee, Texas Southern, and FAMU have alumni who are reshaping skylines. These institutions must recognize this as an extension of their impact—and protect it.

The Federal Reserve Chair is not a figurehead. Powell’s potential removal would represent a seismic shift in economic planning—especially for real estate. For HBCU alumni, many of whom have built their portfolios in the shadows of systemic exclusion, the message is clear: this is not a time to panic—but it is time to prepare.

Build alliances, lock in rates, stockpile liquidity, and be ready. The future of our neighborhoods, our campuses, and our financial independence will be shaped by how we respond to this moment.

And if the rest of the market goes quiet, remember: Black investors have never needed perfect conditions to build power—we’ve just needed a plan and each other.