CHALLENGE

Northpark Village Square was one of a handful of true “core” grocery-anchored retail shopping centers on the market at the time. Given the late 2010 sales surge nationally, the economy was slowly gaining momentum. Values increased at the same time with CMBS debt coming back and rates being at sub 5%. Our challenge was to close quickly, at the highest possible value, with few comparables to back us up.

STRATEGY

We created a professional offering memorandum that showcased the dominant trade area, the strength of the income stream, exceptional demographics, and the high barriers to entry. Within the offering memorandum we included property and trade area tour dates as well as an offer due date. Through the marketing process, we outlined the course of action clearly and effectively to push value and price expectations. Our efforts were rewarded by creating a competitive atmosphere where several potential purchasers re-submitted offers up to three times.

RESULTS

We generated 21 all cash offers and raised $800M of equity chasing one deal. We also had multiple rounds, which increased seller’s proceeds by an additional 10%. At the time, Northpark Village Square was the lowest cap rate sale in the previous three years for grocery-anchored shopping centers in California.This sale proved that grocery-anchored was the “in demand” CRE investment.