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Success Stories

Mervyn’s Retail Center Portfolio

Property Type: Big Box Retail

Location: California, Nevada, Arizona, Texas

SF: 2 Million

# of Units: Portfolio of 25 Assets

Occupancy Increase: From 12% to 89%

Value Created: Annual income increased by more than $5.5 Million

BACKGROUND

When Trigild assumed management of the Mervyns portfolio, it was experiencing a number of challenges:

  • Significant vacancy – 88%
  • Unfavorable lease terms on the occupied space
  • Mismanagement from the asset and property level
  • Challenging retail leasing market

APPROACH

Trigild analyzed each asset from a valuation and leasability standpoint, then undertook the following:

  • Stabilized the portfolio utilizing an aggressive lease up campaign on vacant space
  • Finalized the leasing negotiations that were in process, quickly closing six deals with national retailers
  • Managed the design and construction management of over 550,000 Sqft,  ensuring on-time delivery of T.I. to new tenants
  • Aggressively rebid services and contracts to reduce or contain costs
  • Actively managed the property tax reassessment and appeal process

PERFORMANCE SUMMARY

  • Within the first 120 days, we oversaw new lease value in excess of $3.5 million dollars
  • Increased occupancy from 12% to 89%
  • Negotiated more than 1 Million Sqft, amounting to $75 Million in new leases, including high profile tenants Kohls, Forever 21, Hobby Lobby, Homegoods and Petsmart
  • 19 new tenants commenced operations under Trigild management
  • Increased annual income by more then $5.5 million
  • Successfully appealed inflated property tax assessment, resulting in refunds of more than $1 million dollars, eliminating the need for additional capital investment by the ownership