What Should a Co GP Partner Look for in a Strip Center Operator?

Last updated: October 29, 2026  ·  By Brandon Lehman, Managing Partner, West Hive Capital

A co GP or preferred equity partner puts capital and reputation behind an operator, so the operator decision matters as much as the property. Strip centers reward hands on management, which makes the operator the main source of value and the main source of risk. This article lays out what a partner can verify, what to ask about the operating team and which warning signs deserve a pause.

How Can a Co GP Partner Verify an Operator Track Record?

A partner can verify a track record by asking for a deal by deal history and checking it against independent records. One investor education guide puts it this way: “a track record is a claim, not a fact, until you verify it line by line.” The same source notes that sponsors write their own track records and that nobody audits the pitch deck before it reaches you.

Useful checks include county recorder records to confirm that a property sold and at about what price, calls to lenders or accountants connected to past deals, and a review of regulatory filings. The same guide recommends checking the SEC adviser database for each principal and comparing the number of deals a sponsor claims with the number of Form D filings. Under the SEC Form D guide, the notice is due within 15 days after the first sale of securities in an offering, so a sponsor that raised capital under Regulation D should have a public filing trail.

What Experience Should a Strip Center Operator Have?

A partner should look for experience with properties similar in type, size and market to the plan being discussed. RealtyMogul advises checking previous projects similar in scope and size to the one offered, and warns that some sponsors lack experience or are undercapitalized.

Brandon Lehman has more than 20 years of experience in retail real estate development and operations, and he led the acquisition, renovation and exit of Western Plaza in Rancho Palos Verdes. We share that history as an example of the kind of verifiable project history a partner can ask any operator to document, not as a result to rely on. Ask every operator for the same detail: who ran the project, what changed and how it ended.

Should Leasing, Construction and Asset Management Be Handled In House?

In house capability is worth asking about because strip centers depend on three skills working together: leasing, construction and asset management. When one team owns all three, decisions about a renovation, a tenant and a budget happen in the same conversation. When each is hired out, the operator becomes a coordinator, and delays or cost overruns can come from handoffs.

The question is not whether in house is always better. Some third party partners are excellent. The question is who is accountable. RealtyMogul screening asks whether a real estate company has the infrastructure to support an investment and the other properties it already holds. A partner can ask the same thing directly: who leases, who builds, who manages and what happens if a key person leaves? Our approach page and our post on renovating shopping centers describe how we think about the physical side of the business.

What Reporting and Transparency Should a Co GP Partner Expect?

A partner should expect regular written reporting, access to the underlying numbers and fast answers to document requests. No single cadence fits every deal, so agree on one in writing before capital moves. A useful reporting package covers occupancy, leasing activity, rent roll changes, construction progress against budget and variances from the original plan.

Responsiveness during diligence predicts responsiveness later. One diligence guide states that if a sponsor cannot produce a private placement memorandum within 24 hours of your request, the offer is not ready for investment consideration. You can apply the same test to rent rolls, budgets and operating agreements. Our acquisition playbook and investment thesis show how we frame our own process.

What Alignment Questions Should a Partner Ask an Operator?

A partner should ask how much of the operator’s own capital is in the deal and how the operator behaves when a plan goes sideways. Two simple questions cut to the point: does the operator have a meaningful amount of its own capital in the deal, and will the operator keep working to protect the deal when the plan goes sideways?

Alignment also shows up in the legal documents. The diligence guide warns that an operating agreement with no practical removal mechanism leaves partners dependent on the operator’s integrity. Read the governing documents with counsel and understand decision rights, information rights and what happens if the relationship fails.

What Are the Red Flags in Strip Center Operator Diligence?

The main red flags are claims that cannot be documented, pressure to move quickly, weak responsiveness and a pattern of raising capital without reporting. The sources reviewed for this article describe several specific signs:

• Unverifiable history. Results that the operator cannot support with closing records or references.
• Artificial urgency. One guide says sponsors who create artificial urgency to prevent the diligence process are signaling that the deal cannot survive scrutiny.
• Gross numbers without net. The same education site suggests asking whether reported performance is gross or net of all fees and promote.
• Raise, go quiet, raise again. That source calls this pattern the most useful red flag an investor can learn to spot.
• Thin capital or thin team. RealtyMogul notes that some sponsors lack experience or are undercapitalized, and lists mismanagement of renovations as a sign of weak operational management.

No checklist replaces judgment. Visit the property, speak with past partners and compare what you hear with the documents.

FAQ: What Should a Co GP Partner Look for in a Strip Center Operator?

How do I verify a strip center operator track record?
Ask for a deal by deal history and check it against county records, lender or accountant references, regulatory filings and calls with past partners. A track record is a claim until independent records support it.

Should a strip center operator handle leasing, construction and asset management in house?
Many partners prefer it because one accountable team makes decisions across all three areas. Third party providers can also work well, so ask who is responsible for each function and what happens if a key person leaves.

What reporting should a co GP partner expect from an operator?
Expect regular written reports on occupancy, leasing, rent roll changes, construction progress and budget variances, plus prompt answers to document requests. Agree on the cadence in writing before committing capital.

If you are a family office, co GP or accredited investor who wants to learn more about how West Hive Capital approaches neighborhood retail, connect with our team.

About the Author

Brandon Lehman

Managing Partner, West Hive Capital

Brandon brings 20+ years of experience in retail real estate development and operations. He previously led projects with SCG West and oversaw the acquisition, renovation, and exit of Western Plaza in Rancho Palos Verdes. He focuses West Hive Capital on neighborhood strip centers in Southern California and metro Phoenix.

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This article is for educational purposes only and is not an offer to sell or a solicitation of an offer to buy any security. Any offering is made only through confidential offering documents to qualified investors.