The Citizens Square Shopping Center, located at 4075 Marietta Highway in Dallas, Georgia, is 75,162 square feet. When the owners purchased the center, there were numerous vacant suites including a 37,000 square foot suite that was previously a grocery store. Most of the tenants were local. The national tenants included a national drug store and pizza delivery chain. The property also offered two available out parcels – each one acre in size.
The owners’ goals were to find tenants for the vacant suite that was once a grocery store and to sell the available out parcels.
During the initial marketing campaign for the vacant grocery suite, it became immediately apparent that finding just one tenant to lease the suite would be too difficult. The cost to convert the suite from a grocery store into a several single tenant concepts such as a bowling alley, a national gym, and a movie theater, was prohibitive. The price these prospects wanted to pay was too low and it would have taken years before the ownership recovered their investment in the build out costs.
We decided to the market the suite as “divisible”. This strategy expanded the marketing campaign to more potential tenants and could generate higher revenues because the owners could charge a higher price per square foot rate for smaller suites.
The first tenant secured was Workout Anytime with a lease for 7,000 square feet of the large suite. Dollar General soon followed; leasing 10,000 square feet. Badcock Home Furnishings and More took the remaining 20,000 square feet and became the shopping center’s anchor. These tenants paved the way for us to lease out the majority of the remaining available suites.
Justin Dinerman was also able to sell the two out parcels. The owners valued the first out parcel, which was a .8 acre tract at $225,000 and the second, a .9 acre tract, valued at $250,000. Through diligent and tactful marketing efforts, we sold the .8 acre site to Maco Federal Credit Union for $431,300 and the .9 acre site to a developer of Auto Zone stores for $475,000.
The ownership was highly pleased with the results. The new tenants were successful business owners with solid histories. After the ownership profited from the new tenants, they were able to sell the property for 53% more than what they initially paid.
Leased vacant anchor suite to three national/regional tenants
Sold two out parcels above ownership’s asking price
Stabilized the property by leasing the vacant suites
Ownership sold property for 53% more than the initial purchase price
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