Connecting Sound Economics With Experience in Real Estate
Concordia’s success has been continuous through the peaks and drops in the commercial real estate market including the S&L Crisis, the Dot Com Bust and the Great Recession. Concordia’s wide ranging experience across a spectrum of real estate investments has delivered superior returns. Concordia’s unique skill set has added value in some very complicated transactions real estate projects.
7 THOUSAND SHEA (Case Study Coming Soon) – Scottsdale, Arizona
Owner: 7000 Shea Associates LLC
7 THOUSAND SHEA is a multi-tenant, mixed-use shopping center with a mix of retail, office and restaurant uses totaling over 147,000 square feet. Situated on 8.35 net acres, 7000 E. Shea Boulevard is located along the primary transit corridor between AZ 101 and AZ 51, in the central business district of the City of Scottsdale, Arizona. 7 THOUSAND SHEA has exceptional high-traffic street exposure with almost 50,000 average daily trips and 60,000 residents living within a 3-mile radius with a median age of 50 years old and an average household income in excess of $130,000. 7 THOUSAND SHEA is surrounded by some of the most expensive housing in the state of Arizona with average home values in excess of $1M. Concordia/National Shopping Centers believes that 7 THOUSAND SHEA’s prime location, along the main transit and retail corridor through Central Scottsdale, presents a unique investment opportunity at a price considerably less than replacement value or comparable land value. The additional fact that 7 THOUSAND SHEA sits in the middle of one of the most desirable markets in the U. S., combined with several significant barriers to entry including a lack of available land in Central Scottsdale, offers an outstanding opportunity to generate significant value using Concordia/National Shopping Centers extensive repositioning and operations expertise with retail, residential and office development.
Allendale Shopping Center – Pittsfield, Massachusetts
Owner: Allendale Associates LLC
A 227,566 square foot built in 1955 and renovated in 2003 was held long term in a family trust while Concordia/National Shopping Centers repositioned the asset for profitable sale. The repositioning included upgrading tenancies, reducing operating costs and pre-development of a pad site to increase value for eventual buyer thereby increasing selling price.
Cermak Plaza – Berwyn, Illinois
Owner: Cermak Plaza Associates LLC
A 310,988 square foot community shopping center built in 1957 and renovated 1996, 2010-2016. CRC/NSC replaced, expanded or relocated more than 98% of the tenants at Cermak Plaza including adding Walgreens and Long Horn Steakhouse to out parcels and precipitating the redevelopment of the McDonalds and NASCAR Car Wash out parcels. Additionally, 39% of the Cermak Plaza was demolished for new construction of a Meijer (90,257 sf), Ross (27,037 sf), and Avenue (3,474 sf). 34% of the occupancy was remodeled, relocated and/or expanded including Marshalls (33,613 sf), K&G Menswear (23,873 sf), Gap Factory Outlet (8150 sf), Dollar Tree (13,695 sf), Office Depot (19,857 sf). The redevelopment included an award winning, innovative façade accented by LED lighting, a new parking lot, additional landscaping, upgraded lighting and electrical systems, underground on-site water detention and wind turbines. Challenges that had to be overcome included asbestos abatement from most interior spaces, leaking underground storage tanks and poor soil conditions that required geotechnical engineering, in addition to several tenant bankruptcies. Concordia was able to secure financial incentives from the City of Berwyn in the form of a $600,000 Sales Tax Rebate to assist with a façade remodel and a $1,500,000 Tax Increment Financing agreement to assist with the Ross development. Cermak Plaza Associates have reaped the gains of a 100% occupied property and a 312% increase in Net Operating Income.
Circuitry City Ground Lease Bankruptcy Stalking Horse – Bloomingdale, Illinois
Owner: MEG Bloomingdale LLC – Merchant Equity Group
Merchant Equity Group LLC was the successful stalking horse bidder in the Circuit City Bankruptcy for a 50,000 square foot ground lease located within Bloomingdale Court, a 659,111 square foot Simon Property Group shopping center. In the depths of the Great Recession, Concordia Realty was able to engineer a bidding war among competing tenants for the remaining 35,910 square feet alongside Dollar Tree. Through careful analysis of the ground lease it was determined that Simon may have violated the supermarket prohibition by allowing Walmart to convert to a Supercenter. That information was used to pave the way for swift approvals and assistance with completing a lease with HH Gregg. The ground lease was then packaged and resold to an investor in 2010 for a 250+% return.
Hyde Park Corners – Chicago, Illinois
Owner: Hyde Park Partners, L.P.
11,396 square foot specialty center. Upgraded tenancy including the completion of high volume Starbucks lease. The investment returned a 2.65 equity multiple and returns exceeded 43%.
Hamden Plaza – Hamden, Connecticut
Owner: Hamden Plaza Associates LLC
A 257,000 square foot shopping center constructed in 1955. Redevelopment included a new façade, parking lot, electrical systems and lighting. 30% of the shopping center was demolished to construct a 65,000 square foot Shaw’s Supermarket (later replaced with Shop Rite). An existing restaurant was replaced with a Chili’s out-parcel, a gas station along Dixwell Avenue was replaced with a high visibility 5200 square foot convenience center anchored by Starbucks and T-Mobile. The center was then expanded again by 9350 square feet of new construction for a Panera and F.Y.E. The Marshall’s was expanded by 9000 square feet into a vacated CVS directly adjacent to the existing store. Additional new tenants including: Petco, Sally Beauty, Dress Barn and GNC. Challenges that had to be overcome included asbestos abatement in most interior spaces, leaking underground storage tanks from the gas station as well as blasting a shear granite rock wall that required geotechnical engineering. CRC/NSC was able to combine standard financing from a life insurance company and a unique loan of $2,000,000 obtained from the Sainsbury PLC (Shaw’s) for tenant relocations and related site work. Sainsbury guaranteed a 20 year lease and also provided additional financing to Hamden Plaza Associates! All of the work was completed with no additional equity from the partnership.
Hawthorne Estates – Schaumburg, Illinois
Owner: SageCrest LLC
Asset Manager: Merchant Equity Group LLC
Hawthorne Estates was a 219 unit condominium conversion project located in Schaumburg, Illinois. Truefield Realty Advisors LLC, a joint venture of Concordia Realty and Skydan Group was contracted by SageCrest Chicago LLC, the mezzanine lender, to perform a workout for the project after the primary lender started foreclosure proceedings. At the start of the engagement the project had been 55% sold and the remaining units were in the rental pool. Concordia immediately cut operating expenses which increased cash flow by more than $40,000 per month. An aggressive leasing campaign increased occupancies in the unsold units which facilitated rent increases on renewals. By targeting potential buyers through direct mail and Google Adwords, Truefield resuscitated the condo sales for the project and shortly thereafter closed three condo sales, in early 2009, during the depths of real estate depression. Truefield worked out an extension with the primary lender, Bank of America, eventually paid down $2.3 million of a $6 million loan, and created savings on the remodeling of the sold units.
HGF – MEG Southern Properties – AL, GA, IL, MO, MS, NM, MO, NC, SC, TN
Owner: HGF – MEG Southern Properties LLC
The Hampshire Companies and Merchant Equity Group LLC
Concordia Realty was the operating partner for executing the strategy of selling or redeveloping a portfolio of 35 former bank branches in 11 states purchased on March 31, 2005 from American Financial Realty Trust. The investment bought the properties wholesale and sold or redeveloped retail to targeted investors. The majority of properties were vacant and required repositioning before sale. The investment was closed out in early 2008 with an average cash on cash return in excess of 45%.
Hoffman Village – Hoffman Estates, Illinois
Owner: SaraKreek Property Company NV
Asset Manager: Merchant Equity Group LLC
Hoffman Village is a 159,443 SF grocery-anchored center in Hoffman Estates, Illinois in the northwest suburbs of Chicagot. The center is located at 2503 – 2599 W Golf Road at the southeast corner of West Golf Road and Barrington Road. Hoffman Village was anchored by a 72,052 square foot Dominick’s.
One Financial Plaza – 1350 Main Street, Springfield, Massachusetts
Tower 14 – 21700 Northwestern Hwy, Southfield, Michigan
Owner: Hartford Creek Associates LLC/Sarakreek Holds N.V.
One Financial Plaza is 343,750 square foot class A office building and Tower 14 is a 253,459 square foot class B office building. Performed asset management and property accounting in a joint venture with Property Focus LLC.
Prairie Square Loft Townhomes – Berwyn, Illinois
Owner: 1601 South Oak Park Avenue Associates LLC
Redevelopment of a historic 1920’s era mixed-use building at 1601 South Oak Park Avenue in Berwyn, Illinois into the Prairie Square loft townhomes. Skydan-Concordia was a principal in 1601 South Oak Park Avenue Associates, LLC, an entity that successfully restored and adapted a blighted mixed-use building for reuse as 22 loft style townhomes. Painstaking care was utilized to retain as much character and aesthetics from the original design while completely redoing the interior of the units and common area courtyard. The project continues to remain a successful mix of the historic exterior and the new interiors, mechanical systems and courtyard design. The project returned to investors an 89% cash-on-cash return in under two years.
65 Pine Avenue – Riverside, Illinois
Owner: Titan Realty Investors LLC
Titan, a single asset entity of Concordia Realty acquired this multifamily residential project, renovated the units and positioned it for sale to a condominium converter. Return exceeded 56% on a 2 year hold.
The Shoppes of Riverwoods – Riverwoods, Illinois
Owner: The Shoppes of Riverwoods LLC
The Shoppes of Riverwoods is a 30,280 square foot shopping center development on 6.8 acres that was completed by a partnership of Heritage Realty Group. The development has an excellent location surrounded by some of highest incomes and house values in the Chicago metro area. The Shoppes of Riverwoods was sold at a 6.73% cap rate, which was the equivalent of a thirty-nine (39%) return on cash invested.
Southgate Mall – Milwaukee, Wisconsin
Owner: Sarakreek Holdings N.V./Merchant Equity Partners LLC
Concordia Realty was tasked with the redevelopment of an obsolescent 500,000+ square foot mall on Milwaukee’s south side. At the initiation of the engagement Southgate was 50% vacant and hemorrhaging cash. Concordia reduced staffing, re-bid service contracts and together with Jeff Gwin from Merchant Equity added Marcus Theaters, Office Depot and Famous Footwear to unused parking areas at the periphery of the property. Within 2 ½ years the interior mall was systematically vacated with minimal lease termination expenses, asbestos was abated then mall was demolished to make way for a Walmart Supercenter. The engineered pad and existing new tenant out parcels were sold to JDN Realty for a 400+% return.
South Hills Mall – Poughkeepsie, New York
Owner: Sarakreek Holdings N.V./Merchant Equity Partners LLC
Merchant Equity/Concordia Realty redeveloped this 675,000 square foot mall replacing Sears with Price Chopper Supermarket and Pharmhouse in conjunction with adding Media Play, Old Navy, Office Max, Discovery Zone, and Bob’s Stores. Burlington Coat Factory was signed in order to replace Service Merchandise. To increase cash flow mall staffing and service levels were optimized to reflect the new discount direction of the anchor tenants. The property was sold to a local New York investor for a 34% return on investment.
State Farm Building – 10031 West Roosevelt Road, Westchester, Illinois
Owner: Acme Realty Investors LLC
Acme Realty Investors, LLC, a single asset entity of Concordia Realty acquired this 12,000 square foot class B commercial property in 2001. Many upgrades completed including replacing Allstate as anchor tenant with State Farm. Returns have averaged 20+% per annum since acquisition.
Truefield Realty Investors Single Family Flip Portfolio – Suburban Chicago Illinois
Owner: Individual L.P.s/Truefield Realty Advisors LLC General Partner
Major Investor: MacNicol Asset Management – 360 Fund, Toronto Canada
Between June 2009 and March 2013, Truefield Realty Advisors LLC, a joint venture of Concordia Realty and Skydan Group, purchased 23 distressed single family homes. All the houses were meticulously renovated then sold for an average return across the portfolio of 41.47%.
Wayne Towne Center – Wayne, New Jersey
Owner: Merchant Equity Partners LLC
Merchant Equity purchased a distressed 653,000 square foot mall anchored by JC Penney and Fortunoff from Aetna Insurance. Concordia Realty was tasked with the turn-around including eliminating the food court to expand Old Navy as well as working with Loehmans, Daffy’s, Zainy Brainy and Borders for leases at the center. Expenses were reduced by more than 50% by eliminating bloated staff contracting with several 3rd party service providers. A secondary benefit was reducing liability exposure with a security contractor. One of the more innovative cash flow increasing strategies was temporary licensing of the interior areas for shooting scenes from the Sopranos. The property was sold for a 51% return on investment.
West Erie Plaza – Erie, Pennsylvania
Owner: Phoenix Life Insurance Co and the Estate of David Bermant TIC
Asset Manager: TIAA Henderson Real Estate
Contact: Brian Eby www.threalestate.com
A 225,225 square foot shopping center constructed in 1949. Redevelopment included new façade, parking lot improvements, landscaping upgrades, and also structural and wall renovations. Anchor tenant expirations were replaced with the high volume discount department store Gabriel Brother’s, Regal Theaters and Valu-King Supermarket (Giant Eagle). New outparcels were developed with Rite Aid and Northwest Savings Bank. The property was an excellent long-term hold and eventually positioned to be for sold to a local developer.