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| SugarOak Success Stories |
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| Case Study: |
Concorde Center |
| Location: |
Austin, Texas |
| Purchase Date: |
February 2005 |
| Size: |
48,116 sq ft |
| Purchase Price: |
$3,080,000 |
Post-Purchase
Investment: |
$275,000 |
| Gross Sale Price: |
$6,000,000 |
| Sale Date: |
December 2006 |
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Concorde Center is a 48,116 square foot retail center located in Austin, Texas. The center was purchased by SOAR in February 2005. At purchase, the center was 66.5% leased, with approximately half of the space under lease rented on a month-to-month basis. Although the look of the center was somewhat unique, the center was in good physical condition and had an up and coming location. However, the center lacked a strong anchor that would give it identity and attract shoppers. At purchase, the vacant spaces were scattered throughout the center and were too small to accommodate an anchor tenant.
SugarOak’s strategy was to immediately address the month-to-month leases and then aggressively work to lease the vacant spaces in the center and bring an anchor to the center to give it an identity. Before closing on the purchase, a new 5-year lease was negotiated with Eric’s Billiards, a 10,000 square foot tenant that had been in the center for 15 years but was unhappy with the prior ownership and threatening to leave. SugarOak then negotiated a new lease with Amazonia Aquariums and relocated them to a difficult to lease space in the center. This relocation created a large contiguous block of space that was used to attract a new 10,000 square foot anchor tenant, Dollar General. A few additional small tenant leases were signed and the center reached 100% occupancy. SugarOak made total additional investments of approximately $275,000 on renovations to the center and tenant improvements following its purchase in order to relocate and attract new tenants.
After reaching 100% occupancy, SugarOak sold the property on December 11, 2006 for $6,000,000. The keys to increasing the value of Concorde Center so quickly were (1) SugarOak’s ability to immediately negotiate deals with the existing tenants who were on month-to-month leases; (2) the relocation of an existing tenant in order to create a space that would be attractive to a new anchor tenant that would bring identity to the center; and (3) attracting Dollar General to the center to be the new anchor. |
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| Site designed and maintained by: Jack Morris Advertising |
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