Received this distressed CMBS asset at certificate of title. Without funds to operate this high end specialty retail center, the borrower had lost most tenants to stronger competitors. Our challenge was to evaluate the remaining tenants and develop alternate scenarios for success while operating the property to minimize client losses.
We found limited options for adding value without significant capital ($3 million minimum). Our evaluation resulted in the client's decision to auction the property. The purchaser, a Colliers client, is now engaged in the repositioning of the asset. We have added eight tenants, including a 15,000 sf anchor, a high end Italian deli & grocery.
- Evaluate conditions and develop alternate marketing/leasing scenarios
- Determine broad brush financial costs for each scenario
- Bring appearance to minimal marketable appearance at minimal cost & manage property
- Support the disposition process
Engaged to provide landlord representation services for leasing and management with full accounting. Provided market knowledge and product expertise to evaluate investment scenarios. Provided disposition support through the auction process.
Provided continuity of operations, hosting functions, including the Bonita Springs Art Festival. Coordinated with Center for the Arts of Bonita Springs regarding artists in residence. Removed tenants who refused to qualify for renewal. Managed tenant legal actions. Put service providers in place to clean horizontal and vertical surfaces to marketable conditions and appearance. Placed vacant units into showable condition. Resulted in successful disposition at auction to related client. Implemented a successful repositioning effort with new client.
Karen Johnson Crowther, Broker
Michael Davids, Senior Property Manager
Tiffany Martin, Assistant Property Manager
The Promenade at Bonita Bay is a lifestyle center, containing approximately 106,454 square feet of leasable office and retail space. The property is highly pedestrian in nature, providing visually appealing water features and covered sidewalks between six architecturally detailed buildings.