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- Outdated movie theater lacked credit, but required significant LL renovation contribution.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.
