North Park Shopping Center

Challenge

• Top performing Kroger grocery store coupled with Kmart anchor on eve of bankruptcy.
• Underperforming shop tenant performance and new development competition.
• Northward market migration and residential growth.
• How to get value for Kmart space with limited prospects to backfill 100,000 SF.
• Kroger controlled redevelopment via site plan modification approvals.

Strategy

• Knowing the degree of difficulty, we conducted a high-touch campaign focused on personal relationships with high-probability buyers.
• Emphasized superlative Kroger sales performance to validate the quality of the location.
• Superior research and market knowledge enabled us to convince Buyer of more opportunity than risk.
• Choreograph property visits and market tours to insure message consistency.

Results

• Met demanding price and terms threshold in spite of numerous challenges.
• Overcame obstacles by engaging directly with leadership at publicly-traded REIT seller.
• Identified a Georgia-based 1031 exchange buyer with additional motivation to close.
• Worked with Buyer’s bank to close after inability to obtain competitive non-recourse debt.