Marketfair Mall

Fayetteville, NC

Challenge

  • High seller expectations for REO asset at excellent location near high-performing regional mall.
  • Second generation replacement anchors HH Greg & Gander Mountain lacked credit.
  • Functional obsolescence of enclosed mall shops resulted in under-performance.
  • Outdated movie theater lacked credit, but required significant LL renovation contribution.
  • High expectations based on quality of location, but encumbered by current leases.
  • Vintage physical plant was dated with deferred maintenance.

Strategy

  • Broadly expose the property to regional buyers who would appreciate value of the location.
  • Highlight upside opportunity to offset capex and lack of anchor tenant credit.
  • Provide a buyer with the vision to improve the property to unlock value.
  • Exploit the strength of underlying demographics – home of world’s largest military installation.

Results

  • Created a competitive marketing campaign to drive value and certainty of execution.
  • Leveraged a National and Northeast buyer to decrease contingencies and drive price.
  • Closed the asset in a 45-day period despite negative anchor tenant news.
  • Exceeded BOV price by attracting a well-capitalized buyer who successfully redeveloped asset.