Retail Shopping Center – Santa Fe, New Mexico
Property Type: Retail Upscale Shopping Center
Location: Santa Fe, New Mexico
Size: 85,000 SF; 6 Buildings
Value Created: The asset sold at auction at a higher than projected sales price due to successful marketing of alternative uses for the property.
Located in Santa Fe, New Mexico’s historic retail center, Trigild assumed management of the foreclosed market center in 2012. After its successful sale in 2015 to a nonprofit foundation, we successfully managed the transition process to retain income while the property obtained its entitlements to become an art school.
The property’s original problems can be attributed to the following factors:
- A large anchor tenant, occupying 36% of the property, had vacated, decreasing the property value and foot traffic for other tenants
- Numerous expired leases, with tenants demanding rent decreases due to poor sales
- Prior poor management that included deferred maintenance, poor tenant relations, and a lack of marketing
- A challenging retail leasing market
Trigild analyzed the asset from a valuation and best use standpoint and undertook the following:
- Working with the tenants, Trigild engaged in promotions to raise the profile of the center, including large-scale publicity-rich events such as the Game Of Thrones’ premier party and the building of “Zozobra” which attracted 40,000 attendees
- Expired leases were renewed
- In the absence of new long-term tenants in a difficult market, several short term tenants were recruited to drive revenue and increase foot traffic.
Aggressively rebidding of services and contracts which reduced operating expenses 12%
- Upon a successful auction to a nonprofit foundation in 2015, Trigild shepherded the property’s transition from a retail center to the New Mexico School for the Arts
- Trigild cultivated the center as a community asset, earning recognition as the “Official Best Local Shopping and Dining” destination in New Mexico and being featured on the Discovery Channel.
- Focused marketing efforts and license agreements to increase revenue during the marketing process, adding to the property value
- Successfully marketed the property to an end-user who re-purposed the project as Charter School for the Arts
- Trigild was retained by the new owners and successfully managed the transition process to retain income while the school obtained their entitlements.