Five Points South warehouse finding new life as 2200 Magnolia REV Birmingham, HTC Profile, Posted on April 9, 2018 [link] Anchoring a distinctive angled corner near Five Points South, the Family Services Laundry Building may have looked like an old brick warehouse to many passersby – but developer Mike Mouron saw potential as soon as he stepped inside. The 92-year-old structure is one […]
MOUNTAIN BROOK, AL
Over the years, Mountain Brook has become a unique, upscale community and shopping destination. Incorporated in 1942, it is the wealthiest city in Alabama with a median income of $126,586. Mountain Brook’s retail environment has three main shopping villages. At the heart of the largest and most historic, Mountain Brook Village, stood a 1950s-era shopping center and apartment complex. Where most saw an outdated eyesore, Retail Specialists saw an ideal opportunity to redevelop the space and bring in high-end retail tenants, most of which are locating in Alabama for the first time.
Lane Parke will feature over 160,000 square feet of retail and restaurant space, 25,000 square feet of office space, a 100 room boutique inn, and 320 luxury residential units.
29 SEVEN, LAKEVIEW DISTRICT
As Birmingham’s Lakeview Entertainment District grew with popularity, so did the demand for retail, food service, and for-rent residential units in the area. With a daytime population of over 200,000 people, Retail Specialists knew a contemporary, mixed-use development would be the key to success.
29Seven has +/- 20,000 square feet of street-level retail and restaurant space and 54 apartments, all of which were leased upon project completion.
WALMART NEIGHBORHOOD MARKET
Our story at Helena Marketplace in Helena, AL is one of patience, diligence, trusting in what we felt was the highest and best use for the property, and working with clients that shared our same goals. Soon after Winn Dixie gave notice that this was the only location in Alabama they would be closing, we had a long list of prospective retailers to fill the void. This ranged from local and regional grocers, to discounters, to hard good retailers – some taking the entire square footage and others who would only need a portion of the box. We provided the ownership with several different scenarios on all of these tenants showing the immediate effects on the net operating income, capital expenditures, return on investment, return of investment, and most importantly, the overall value of the property.
Our time spent courting Walmart Neighborhood Grocery took many twists and turns, but we knew this was the highest and best use for the property from the start – they were literally our first call once we heard of Winn Dixie’s closing. After two and a half years of working the deal, we were able to take Walmart’s initial offer of buying the property at a discount and turned it into a long term lease where our investors would be the landlord of a tenant with some of the best credit in the commercial real estate universe. The Walmart lease coupled with the buyout deal we worked out with Winn Dixie was a home run for the ownership as we sourced a deal that added approximately $7 million in overall value to the center.
We began work on this project when the shopping center had over 130,000 SF of vacancy – largely due to a vacant grocery box, vacant department store, and a vacant junior box shoe store. The vacant department store was an eyesore that anchored the most visible part of the shopping center. Its floor plan was outdated and the facade needed an upgrade to pull the center into one cohesive unit. The other vacancies were too large for the tenant demand in the area and also needed updating.
Through some creative, outside the box thinking and many meetings with contractors and architects, we were able to create a revised leasing plan. We updated the appearance of the center, brought the space footprints up to today’s market requirements, and completed ten transactions with national and regional tenants.
Our work raised the occupancy rate to a wowing 94%, and our leasing stabilization and redevelopment services ended up increasing the owner’s NOI by over $826,000 per year.