BIG BOX RETAIL REPOSITIONING LEADS TO ENHANCED PORTFOLIO VALUE

Background

A family-owned investment portfolio consisted of a small, three-building commercial property along with a vacant development site. One of the assets, a 67,000-square-foot bigbox retail property, had remained vacant for over seven years with no leasing activity. Seeking a strategic solution, the family engaged Trinity to evaluate the asset and develop an actionable plan to enhance the portfolio’s value.

Approach

Trinity conducted a comprehensive analysis of market demand, economic feasibility, and potential repositioning strategies.

The key recommendation was to demise the vacant retail building into two to three smaller tenant suites to better align with market trends.

This restructuring plan projected a significant net value increase after capital expenditures. Following the initial project’s success, Trinity was engaged to assess the full portfolio, identifying strategic opportunities across multiple asset types:

Retail: Retain for long-term cash flow stability. Apartment Community: Upgrade units and implement market-rate fees to maximize revenue.

Flex office: the site had greater potential for redevelopment than as an office asset, so lease terms were limited to preserve flexibility.

Development site: The original development plan was expected to underperform; Trinity proposed a reconfiguration to optimize the concept and maximize future returns.

Outcome

The repositioning efforts delivered substantial financial gains for the family. The newly configured retail asset secured three leases, including two with national credit tenants, boosting net cash flow from -$100K per year to +$550K per year and increasing asset value by $2.7 million. With Trinity’s strategic oversight, the entire portfolio was realigned for long-term success. By optimizing asset utilization, restructuring underperforming properties, and enhancing income potential, the family significantly strengthened their real estate holdings and overall investment strategy.