CASE STUDY: Management PLUS
Taking Management to the Next Level
RED Development takes a multi-dimensional approach to third party management by integrating and collaboratively using its expertise in leasing, development, construction management, operations, marketing, accounting, and capital markets to significantly increase value. RED manages and leases every property like an Owner - the primary focus is on maximum value creation.
RED is focused on partnerships with property owners who are specifically looking to reposition their properties in the market and in the local community, refine their tenant mix and add fresh uses, and/or redevelop the asset in order to realize full value. RED is selective in its third party management, and looks to bring its expertise to assets in markets with the most value-add opportunities. Focus is currently on infill markets where RED already has significant experience and relationships: Los Angeles and Orange County, CA; Dallas-Fort Worth, TX; Phoenix, AZ; Kansas City, KS and Lincoln/Omaha, NE.
Camelback Colonnade – Phoenix, AZ
Camelback Colonnade is a dominant power/neighborhood center located in central Phoenix along the popular “Camelback Corridor.” RED took over management of the property in late 2013, and immediately started taking advantage of the property’s infill location to unlock its full market potential.
In 2015, RED has taken the occupancy from 84% to over 96%. Key accomplishments include:
- Re-tenanted a vacant Mervyn’s building, that had been vacant for 8 years (2008), with a new to market tenant, Floor & Décor
- Negotiated the renovation and 20,000 square-foot expansion of the successful Fry’s grocery store
- Negotiated the addition of a new out lot
- Re-negotiated the leases for several national anchor tenants to increase term and rent
- Re-financed the asset and placed more competitive long-term debt on the asset
Through RED’s multi-disciplinary and collaborative approach to management, which is drawn upon extensive tenant relationships, a history of creating successful developments and experience working with municipalities across the country, RED increased the NOI from roughly $6MM (in 2013) to approximately $9MM (2015), which equates to approximately $45MM of value in roughly two years. As a direct result, there is continued growth potential for the future, including opportunities to refine the tenant mix, add multi-family housing and additional out lot buildings.
For more information on how RED can help you unlock the full potential of your property please contact:
Executive Vice President, Acquisitions & Development
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