CARROLLTON PARK VILLAGE
In 2007, CenterPoint was hired to assist Landlord in the day to day operation of the shopping center. The object was to stabilize the asset and Increase the revenue to prepare it for sale. The prior managing partner had left the books in shambles. A substantial amount of recoveries were unaccounted for, while tenants were paying less than required. The NOI was below market for the area, yet the property was over 95% occupied.
The 1st plan was to recapture the missing funds. While all of the leases were NNN, many were only paying 30-40% of the actual charges. In order to limit stress on the tenants and avoid the risk of Tenant’s vacating the property, a two year plan was established to gradually increase the nnn for the existing tenants until they were paying full recoveries. In addition, an opportunity to create a pad was identified. However, a restructure of the existing cross parking agreement was required in order to complete any opportunity.
GOING THE EXTRA MILE
With the help of the Landlord’s attorney, CenterPoint was able to re-negotiate and modified the reciprocal easement agreement with the neighboring property owners. Within 7 days of marketing the pad site, CenterPoint had an LOI working, and within 3 months signed a long term ground lease with corporate Taco Bell/KFC. In the process, a property monument sign sat where the new user was to be located. So, CenterPoint and the management team arranged for to relocate, redesign, modernize, and increase the pylon. An additional REA amendment was also required as the neighboring property owner shared this pylon. CenterPoint arranged for the agreement and provided more property for its owner while increasing the neighbors signage at the same time.
Some Tenant highlights during the course of this project:
KFC / Taco Bell – New Tenant
Dollar Tree – New Tenant
Title Max – New Tenant
T-Mobile – New Tenant
Half Price Checks – Renewals and increases
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