Coyote Management, LP is an owner and manager of regional malls located in secondary markets nationwide, with a focus on the southern and south-central regions. Over the past 14 years, the company has owned and managed 21 properties and sold its ownership of 18 centers after increasing value at the sites through redevelopment and repositioning. Coyote builds its portfolio through acquisitions, and is actively seeking sites nationwide. The company prefers enclosed anchored malls ranging in size from 400,000 to over one million sq.ft. situated in trade areas with a minimal amount of competing properties, explained chairman and CEO Michael Rulli. “Our company has a strong expertise in these particular areas of retail, and these are property types that are typically underserved in their respective marketplaces – especially the secondary-market malls,” he said. “We can add tremendous values with these acquisitions, and ultimately [generate] a significant return for our equity partners.”
The majority of Coyote’s acquisitions have been properties that were under-capitalized by their previous owners, Rulli said, adding that the firm stands out for its hands-on approach to the repositioning of these malls and its ability to increase value through aggressive leasing, marketing, management and financing. Kymberley Scalia, corporate director of marketing for the company, said that the company reviews an extensive “punch list” of requirements for each newly-acquired property to increase occupancy, sales and traffic. These necessities include the site’s overall aesthetics, opportunities for potential renovation, customer service amenities, operations (such as landscaping or roof and parking lot repairs), security, marketing, advertising and research, among others. “This is even more important during a recession, because customers have less discretionary income to spend and will make fewer visits,” Scalia said. “You have to ensure that your customers are getting the best shopping experience possible at your center and that you give them a reason to come to your property in lieu of the competition and hopefully conduct their retail expenditures in your stores.”
One of Coyote’s most notable redevelopment successes was the repositioning of Tulsa Promenade, located in Tulsa, OK. The company owned the property from 2004 to 2006, and within that time performed extensive renovations, including a redesigned center court and main entrances, an added children’s play area, new signage and a major landscaping project. The company also initiated a marketing and rebranding campaign designed to re-establish the center as a major shopping destination within the Tulsa market. Over the tenure of its ownership, Coyote was able to increase sales and traffic at the site, attract new retailers and ultimately sell the asset, Scalia said. Another notable project was the redevelopment of Sikes Senter, located in Wichita Falls, TX, which took place from 1999 to 2003. The company executed more than 40 new leases – including 24 retailers that had never previously entered the market – totaling 104,300 square feet before selling Sikes Senter to General Growth Properties in 2003.
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