Kennesaw Landing is a 62,468 square foot neighborhood center located along a transitioning commercial corridor in Kennesaw, GA. Developed in 1989, the property was originally anchored by a national grocery store and contained 32,468 square feet of local space. Due to access and visibility problems that worsened over time, the anchor tenant vacated their space in 2000 for a new location, but continued to pay their rent. In 2005, a local investment group acquired the center with the intent to eventually re-tenant and reposition the center while maintaining the existing income from the anchor and other tenants.
Shortly after the new ownership acquired the property, the anchor tenant ceased to pay rent based upon their interpretation of a stipulation in the original lease related to a change in ownership. The owner disputed the anchor tenant’s interpretation and pursued reinstatement of the rent through legal action. With protracted litigation and deficient cash flow accumulating, With protracted litigation and deficient cash flow accumulating, the new owners were faced with the dire need to lease the vacated anchor space in the practically “as is” condition and with a relatively short lease term to help preserve the future redevelopment possibility.
Justin Dinerman worked extensively with the local investment group’s legal counsel in the defense against the anchor tenant’s claim and acted as the owner’s liaison in negotiations with the anchor tenant. He helped formulate a resolution, which was accepted by both parties. Meanwhile, he devised a marketing program to target a short-term replacement tenant better suited for the location and area demographics.
Justin Dinerman was integral in negotiating a settlement with the anchor tenant that exceeded the new ownership’s expectations. He implemented a targeted marketing strategy and secured Goodwill Industries as a perfect fit for the property and the area. Within two weeks of touring the empty space, lease negotiations were underway with Goodwill. Dinerman successfully negotiated a lease on behalf of the owners that required minor improvements to the space. The cost for those improvements was recouped through the rental rate. In addition, the initial term of the lease was for five years with a tenant’s option to renew for one additional five-year term. The lease term and rate were favorable to the owners and gave the owner time to plan for redevelopment of the property.
Leased anchor suite to a national credit tenant
Assisted in securing a favorable legal settlement for the property owner
Devised a targeted and successful marketing campaign
Maintained ownership’s long-term goals for the property
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