Announces Seritage Growth Properties (NYSE: SRG) (referred to as “Seritage” or “the Company”), a leading national owner and developer specializing in retail, residential, and mixed-use properties, has officially announced an upcoming leadership transition. The Seritage Board of Trustees and Andrea Olshan have mutually agreed that Ms. Olshan will step down from her roles as Chief Executive Officer (CEO), President, and member of the Board of Trustees, effective April 11, 2025.
The Board has appointed Adam Metz, who has served as an independent member of the Board since 2022 and currently holds the position of Board Chairman, as the Interim CEO and President. Mr. Metz will assume his new leadership responsibilities on the same effective date, April 11, 2025. This transition comes as part of the Company’s ongoing strategic realignment following the execution of its shareholder-approved Plan of Sale.
Strategic Reasons Behind the CEO Transition
Seritage’s decision to transition its leadership aligns with the Company’s overarching strategy to streamline its operations. Since the announcement of a comprehensive strategic alternatives review in March 2022, Seritage has significantly reduced the size of its real estate portfolio. Initially comprising approximately 160 assets, the portfolio now consists of just 15 assets. Given this substantial reduction, the role and scope of the CEO position have evolved, necessitating a shift in leadership.
In light of these developments, the Board and Ms. Olshan agreed that a change in leadership at this stage would be in the best interest of the Company and its shareholders. This transition is expected to further Seritage’s objective of executing its strategic initiatives efficiently while adapting to the evolving needs of the business.
Reflections on Andrea Olshan’s Tenure
During her four-year tenure, Andrea Olshan played a pivotal role in shaping Seritage’s strategic direction. She navigated the Company through a challenging real estate landscape, driving significant progress on its Plan of Sale. Under her leadership, Seritage successfully repaid over $1.3 billion of its loan facility and took crucial steps to streamline operations, ensuring a more agile and financially sustainable business model.
Adam Metz, Chairman of the Board, expressed appreciation for Ms. Olshan’s contributions, stating:
“We thank Andrea for her considerable contributions over the last four years and her tireless work on behalf of Seritage and its shareholders. In the face of challenging market conditions, Andrea has led the effort of effectuating our Plan of Sale, repaying over $1.3 billion of our loan facility in the process and making important strides in streamlining our Company’s operations.”
Ms. Olshan also shared her thoughts on her time at Seritage, highlighting the collaborative efforts of the management team and the Board in overcoming market turbulence.
“Through a turbulent market, we have accomplished so much during my four years at Seritage,” Ms. Olshan remarked. “This was made possible through the combination of the efforts of our dedicated management team and the support of our Board.”
Adam Metz: The New Interim CEO and President
With an extensive background in both public and private real estate businesses, Adam Metz brings a wealth of experience to his new role as Interim CEO and President. He has held leadership positions across various real estate investment and development firms, providing him with the strategic insights and operational expertise necessary to guide Seritage through its next phase.
Beyond his leadership in corporate settings, Mr. Metz has also built a strong reputation for his governance and oversight experience, having served on multiple boards throughout his career. His insights and leadership will be instrumental in maintaining the Company’s momentum and ensuring a seamless transition during this critical period.
As the Board continues to assess the best course of action for Seritage’s leadership structure, it remains open to considering alternative senior leadership options. The pace of the Plan of Sale and other strategic factors will play a key role in shaping future decisions regarding executive leadership.
The Future of Seritage Growth Properties
With a significantly streamlined asset portfolio, Seritage Growth Properties is at a crucial juncture in its evolution. The Company remains committed to maximizing value for its shareholders while ensuring a disciplined approach to asset management and sales. Under Mr. Metz’s interim leadership, the Board will continue to oversee the successful execution of the Company’s Plan of Sale while evaluating potential opportunities to further strengthen Seritage’s position in the market.
Seritage’s ongoing strategic transformation reflects broader trends in the commercial real estate sector. Many property owners and developers have been recalibrating their portfolios in response to shifting market dynamics, particularly in retail and mixed-use development. By reducing its asset base and streamlining operations, Seritage is positioning itself for a more focused and efficient future, adapting to the evolving real estate landscape.
While Ms. Olshan’s departure marks the end of a significant chapter for Seritage, it also signals the beginning of a new phase under Mr. Metz’s leadership. The Board’s decision to appoint an experienced real estate executive as Interim CEO underscores its commitment to ensuring stability and continuity during this transition.
