Martello was hired by a multi-national syndicate in 2002 to create a unique asset strategy for the repositioning and ongoing management of Cedar Hills Plaza, a 54,000 square foot neighbourhood strip centre in Surrey, BC. Having a weak tenant mix of Mom and Pop retailers and being over 30% vacant, Cedar Hills was in dire need of skilful management to realize its full value potential.
In order to maximize the client’s return on investment, Martello implemented an aggressive asset strategy which targeted three key aspects of the property: improving the tenant mix, reducing operating costs, and creating new revenue streams. Martello was able to secure national tenants, including Shoppers Drug Mart, UPS and Subway to fill the vacancies. Martello also oversaw the decommissioning of the Esso Station and the construction of a new build-to-suite drive thru pad in its place which was leased to Starbucks at a 43% rental premium above market rates. Over the project timeline, operating costs were reduced from 35% of gross revenue to 22%, allowing for base rent to be increased throughout the centre.
By prudently managing Cedar Hills, Martello was able to implement the asset strategy without requiring any equity contributions from the client. In 2012 Cedar Hills was sold to Surrey City Development Corp and the Client earned a considerable profit.
12830 96th Ave Surrey, BC
Improve Tenant Mix Reduce Operating Costs
Shoppers Drug Mart
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