Tri-Land Grocery-Anchored Redevelopment Video Example
By RJ Johnson September 22, 2023
Tri-Land Grocery-Anchored Redevelopment Video Transcript
Since 1978, Tri-Land Properties has been recognized for its unwavering integrity ability to foresee possible changes and create value in grocery-anchored retail shopping centers.
Headquarters just outside of Chicago, Tri-Land is a privately held full-service fully integrated real estate investment and development company that has successfully redeveloped over fifty shopping centers. Primarily located in the major infill locations in the Midwest, mid-Atlantic, and Southeast markets. In this video, we’ll provide you with examples Tri-Land’s deep value-add redevelopment strategy. It is important that you understand that we just don’t paint the pig, but we truly revitalize the shopping center and bring new life to them. The goal of our redevelopment strategy is to have a positive impact for the tenants, for the community, and for the patrons who shop at our centers.
It all begins with our exceptional grocery industry knowledge, When we enter a market, Tri-Land will spend nine to twelve months evaluating the market, inventory in the shopping centers both on and off-market opportunities, understanding the demographic and the demographic shifts, driving the markets, understanding the road networks, and understanding the food and food distribution within the market. We spend time to evaluate the market through a grocery operators lens. This takes diligence, expertise, and time.
Next, we apply our proprietary quarter-mile cell analysis. This model helps us evaluate trade areas and store performance. It helps us highlight the impact or the erosion from other stores within a network and helps project food sales from given locations. This gives Tri-Land a quantitative reasoning for wanting to be in a particular trade area and can help us identify the actual piece of real estate within that area. Population density is typically the key to success for our deep value-added strategy. The more people that visit our site repeatedly allows us to charge higher rents for smaller spaces, and grocery-anchored centers works exceptionally well for this strategy.
This is Fridley Market Shopping Center. Which was a 165,000 square foot shopping center anchored by Cub Foods. At the time of purchase, Cub Foods operated a hundred and four thousand square feet, Tri-Land successfully completed the redevelopment of the shopping center by reducing Cub Foods’s obligation from a 104,000 square feet to roughly 65,000 square feet. This reduction allowed Tri-Land to develop two new outlets and a limited-service hotel at the site. As you can see from the pictures here, the project was completed and achieved favorable returns for the investors.
As part of our redevelop strategy, we work closely with local governments and communities to help achieve positive impactful results.
This usually results in a financial economic incentive or a contribution to the development of the center. As an example, Tri-Land purchased the hub shopping center in March of 2022. Much like Fridley, the value-added development strategy included reducing the grocery store operator price chopper from a hundred and four thousand square feet to roughly seventy and square feet. We will reduce the shopping center by seventeen thousand square feet which will allow for the development of four additional outlets. We worked closely with the city of Independence on a collaborative basis and on June 20th of 2023, the city approved $12.0 Million dollar incentive package to assist in the redevelopment of the shopping center.
Not only does Tri-Land redevelop centers, but we’ve also completed many ground-up development much like Salem Gate. It was originally purchased as a potential grocery-anchored site, but due to market constraints, this 139,000 square foot center was de leased and demolished in two thousand nineteen. The original business plan was modified to build a two hundred and five thousand square foot shopping center which included Floor & Decor, Academy Sports, Northern Tool equipment, and houses a 48,000 square foot limited service home to suite’s hotel operator. Rockdale County contributed $9,700,000 dollars in financial incentives and public improvements.
Throughout Tri-Land’s history, we have navigated many different market cycles. From short-term interest rates going from 21% in the 1980s to almost zero in 2015. From nonexistent credit during the S&L crisis of 1990 to a very loose criteria preceding the financial global crisis of 2018 and even through the pandemic of 2020. These ever-changing conditions can make owning real estate difficult for some but for Tri-Land, it offers a unique opportunity for us to deploy our deep value-added redevelopment strategy and create institutional-grade real estate for other people to purchase from us. So we thank you for taking the time to learn more about Tri-Land Properties and we welcome you to join us as we continue to positively impact the communities that surround us.
*IMPORTANT DISCLOSURES:
THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY A SECURITY. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. INVESTMENT ADVISOR USE ONLY – NOT FOR REDISTRIBUTION. THIS VIDEO IS FOR THE PURPOSE OF ILLUSTRATING AN EXAMPLE OF “DEEP VALUE-ADD REDEVELOPMENT”AND IS NOT INTENDED FOR ANY OTHER REASON.