Tatum Point Shopping Center
In 2011 for $30,000,000. Cash to existing loan of $10,800,000
Appraised Value when refinanced in 2014: $41,600,000
Washington Capital and WVP private investors
Refinanced in 2014 upon stabilization and held for cash flow.
3 year Project IRR of 18.58%
· Larger 178,209 square foot center.
· Well located in Phoenix, West of Scottsdale and North of Paradise Valley.
· Wal Mart (NAP) property next door and planned to expand into grocery.
· Anchor tenant, Basha’s, declared bankruptcy and did not affirm lease in proceedings due to Wal Mart expanding into grocery at the location.
· Shop space still highly occupied despite extended anchor vacancy, proving a strong retail location.
· Existing loan had to be assumed due to large defeasance cost.
· Release the vacant anchor space.
· Build an outparcel to move Starbucks who desired a drive thru and increase leaseable area
· Update the image and look of the center through a mixture of stone, paint and façade work.
· Either refinance or sell upon stabilization and when original loan expired
· Leased the anchor space to two tenants: Big Lots and Sprinkler World.
· Designed and obtained approvals from the city to build outparcel.
· Constructed new parcel
· Moved Starbucks to new out parcel with drive through.
· Leased remainder of new space to Five Guys Hamburgers.
· Made significant cosmetic improvements including
o Wrapped columns with new stone
o Added new paint schemes
o Added new signage
o Improved ingress and egress
· Successful stabilization.
· Value of $41,600,000 on refinance date.
· Still owned and held for future cash flow.
· 3 year Project Level IRR: 18.58%