ProEquity took over the project in 2012. The center, a classic Main Street mixed use project, was in foreclosure on a failed remodel. The project included a struggling art house movie theatre and a high-end restaurant.
Vacancy was high and previous owner was difficult to work with. Most of the tenants were in arrears.
We implemented a short-term leasing plan, coupled by a longer-term stabilization and management plan that included a mark to market approach on new leases, renewals, and the recapturing of operating costs. We implemented a tenant by tenant evict-and-replace program to back fill the vacancy and ease client concerns, and we set up a cost analysis and renewal program to target renewing tenants’ operating expense baseline recapture rights by the Landlord.
We did a long term work out and extension of the art house movie theatre, which converted to a dine-in movie theater concept. We brought in Buffalo Wild Wings to backfill a tenant and leased up the remaining office space to 100%.