Another Turnaround Success
In December of 2014, the O’Fallon Walk Shopping Center located in O’Fallon, MO was sold to a Miami-based investor for $9.155 Million – a figure which due to our efforts reflects a 66% increase in value from the best viable bid obtained during an aborted sales offering in 2012. “We are very pleased with the value added to this asset by the RE|SOLUTIONS’ team”, says Ian Coutts asset manager for Torchlight Investors.
Built in 2005, this 157,000 sf shopping center lost three junior box tenants during the height of the last recession – Old Navy, Linens & Things and Factory Card Outlet. With a vacancy of 45%, the property fell into default on its mortgage and resulted in RE|SOLUTIONS being appointed by the special servicer to act as receiver and property manager.
Our analysis of the property revealed a correctable flaw caused by a third-party owned auto mechanics garage “outlot” blocking an important sightline and access to the property. With lender and court approval, we moved quickly to negotiate a purchase option with the owner of the offending land parcel. The next step we took was to create an new marketing package to more effectively communicate the new proposed access point and view corridor to prospective tenants and purchasers.
“By thinking outside of the box and tying up the land blocking the property, we were able to create a new vision and rekindle interest in the center, and thereby attract a new high quality grocery store and a large fashion retailer,” Mr. van der Zanden said. Our actions created momentum that was instrumental in O’Fallon Walk’s turnaround success story.
O’Fallon Walk – Creating the Vision