the boulevard at surprise pointe

Value-add Case Study (active)

The Boulevard At Surprise Pointe

The Opportunity
  • CIRE purchased the newly constructed 141,507 SF multi-tenant REO asset from a Southern California private investment firm that acquired the note in 2011 as part of a bundled secured loan portfolio

  • CIRE negotiated an all-cash purchase price representing a 70% discount to the original $57,000,000 construction loan made to the original developer in 2007-2009

  • Own and operate a best-in-class retail asset with a diverse and stable tenant base including Ultra Star Cinemas (39% of total SF) and Walgreen’s (10.5% of total SF)

Value-add Strategy
  • Transition the property from a mismanaged REO asset to a best-in-class service offering focused on attracting and retaining quality tenants and providing institutional quality services

  • Lease up and stabilize the remaining 38% vacancy through an aggressive marketing campaign offering a compelling value proposition—top quality real estate at below market lease rates and above market tenant improvement packages

  • Build 2nd story in Building M adding appx 5,350 SF

  • Option to develop or sell off the remaining six (6) undeveloped pads consisting of 6.6 acres

Execution/ Results
  • Executed 29,625 SF of new leases within 6 months of ownership

  • Outperforming proforma lease rates, lease term, TI allowances, and abated rents

  • Realized 49% savings in operating expenditures through vendor contract renegotiations and optimization of service contractor schedules

  • Added 5,350 SF to the property with the addition of a 2nd floor in Building M

 
Property Description

Property Type:
Multi-tenant Retail

Sub-Market:
Surprise, Arizona

Number of Bldgs:
Twelve (12)

SF / Acres:
141,507 SF / 29.82 acres

Year Built: 2008

Initial Occupancy: 64.9%

Current Occupancy: 84%