Special Series: Lower Middle Market Alpha with Ryan Moore - Co-Founder and CEO - Last Mile Investments - Retail’s Revenge: The Last Mile Opportunity
Mar 28, 2025
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Ryan Moore, Co-founder and CEO of Last Mile Investments, shares insights from over 20 years in real estate. He discusses the contrarian approach to unlocking value in unanchored retail spaces and the importance of local market knowledge. Ryan emphasizes the resilience of brick-and-mortar retail, outlining how strategic investment and operational expertise can yield high returns. The conversation also covers the evolving landscape of retail investment amidst a recovering market, highlighting collaborative culture and thematic strategies as keys to success.
Ryan Moore identifies significant untapped opportunities in unanchored retail despite the prevailing trend favoring e-commerce and multifamily investments.
Last Mile Investments operates as a fully vertically integrated platform, ensuring comprehensive control over retail assets to enhance investment returns.
The firm emphasizes local intelligence and a bottom-up approach, leveraging boots-on-the-ground insights to make informed investment decisions in retail properties.
Deep dives
The Contrarian Approach to Retail
Ryan Moore established Last Mile Investments in 2019 amidst a prevailing perception that brick-and-mortar retail was declining due to the rise of e-commerce, particularly after Amazon's acquisition of Whole Foods. Rather than following the trend toward multifamily and industrial investments, Moore perceived significant untapped opportunities in unanchored retail, which was largely overlooked and misunderstood. His perspective was grounded in years of retail experience and deep relationships with tenants, leading him to believe that retail properties remained valuable and strategically located near high traffic areas. This contrarian viewpoint has positioned Last Mile to capitalize on the shift back towards physical retail spaces as consumers seek closer and more accessible shopping options.
Vertical Integration in Operations
Last Mile Investments operates as a fully vertically integrated platform, emphasizing the importance of creating value at every stage of the investment process. The firm has developed a dedicated investment team, along with departments for leasing, asset management, portfolio management, finance, and accounting, allowing for comprehensive control over its retail assets. By employing a holistic approach, Last Mile can effectively identify, acquire, and manage properties that meet their strategic goals, enhancing their ability to deliver superior returns for investors. This integration not only streamlines operations but also fosters collaboration and information sharing among teams, which is crucial for optimizing investment decisions.
Misunderstandings in the Retail Sector
Moore highlights that retail is one of the most misunderstood asset classes, particularly among institutional investors who may find it challenging to assess its inherent risks and dynamics. Unlike multifamily properties, where minor location differences can yield minor outcome variations, retail assets are significantly impacted by the specifics of leasing arrangements, tenant performance, and location nuances, which can greatly affect capital risk. This complexity has led to decreased institutional interest in retail, effectively creating a capital vacuum that Last Mile has seized as an opportunity for greater returns. As a result, Last Mile focuses on educating investors about the potential benefits and mispriced opportunities within the retail sector.
The Importance of Local Intelligence
Last Mile Investments relies heavily on local intelligence and boots-on-the-ground insights to make informed investment decisions. The firm emphasizes a bottom-up approach, encouraging teams to leverage their networks and local knowledge to uncover undervalued assets, rather than relying solely on traditional market data. By engaging deeply with their operating teams, Moore believes they can better identify emerging opportunities and avoid potential risks. This organizational culture promotes collaboration across departments, ensuring that insights from leasing, asset management, and investment teams inform strategic choices, ultimately enhancing their decision-making framework.
Last Mile's Vision for the Future
As Last Mile Investments continues to grow, it aims to build a sustainable, resilient platform that prioritizes long-term value creation for its investors. Moore envisions a firm that remains adaptable, harnessing the collective expertise of its team while focusing on factors that drive success, such as investor benefits, market dynamics, and rigorous risk assessment. By establishing a culture of accountability where every individual is responsible for alpha creation, Last Mile fosters innovation and proactive investment strategies. The firm is committed to expanding its portfolio in a manner that underscores its mission while responding to the evolving landscape of the retail sector.
Ryan has more than 20 years of experience in real estate investing, finance, and portfolio /asset management; including over $10B in transaction value ranging from acquisitions and capital markets to strategic joint ventures and M&A. Prior to co-founding Last Mile Investments, Ryan served on the senior leadership team of Phillips Edison & Co (as Principal of the institutional management business) an approximately $7B fully integrated real estate platform focused on the retail sector, where he most recently built and led the Institutional Investment Management business. Ryan was responsible for all aspects of the business including strategic direction and growth, portfolio management, performance, investor relations, and capital raising. Ryan is a graduate of the University of Illinois with a BS in Finance. He is also on the board of the Lexington Hotel Group, as well as an active member in YPO, ICSC and ULI nationally, where he is the Chair for a national retail council consisting of senior level peers.