PROPERTY TYPE RETAIL
SIZE 250,000 +/- SF
CHALLENGES Several retail properties had been constructed in the last few years offering stronger linkages than the subject property. Former grocery and drugstore spaces at one end of the center attracted little attention from tenants looking at locating in the area. This submarket attracts local "mom and pop" tenants that could normally be relied upon to backfill space at the property. Rendering the asset vacant for underwriting purposes, a short remaining lease term on an anchor tenant with other leases also approaching expiration.
SOLUTIONS: Quantum's team recommended repair of major items such as parking lot lights, center lighting, replacement of concrete slabs throughout storefront walkway, repainting the monument sign, restriping the parking lot including redirection of traffic patterns so as not to bypass storefronts, and working with tenants to activate the exteriors of their spaces. Leases were renewed, including a 3,100 SF expansion, with terms viewed favorably by lenders.
RESULTS: The Quantum team took the asset to market after stabilization through capital improvements, lease renewals, an expansion, and new leases resulting in occupancy being raised to 75%. Quantum presented the remaining opportunity (fill vacancy/minor repairs) to value-add buyers, which lead to an off-market disposition coordinated by the Quantum team.