Marketfair Mall

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• Outdated movie theater lacked credit, but required significant LL renovation contribution.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