GROCERY CHAIN REAL ESTATE STRATEGY

Background

A family-owned specialty grocery chain sought to take a more strategic approach to its real estate investments. Over the years, the family business grew organically, and the family had occasionally capitalized on real estate investment opportunities. In addition to an extensively renovated flagship store, the family retained ownership of previous store locations with surface parking lots, each with significant development potential and growing value.

Approach

To align the family’s real estate investments with their long-term goals, Trinity first engaged in comprehensive discussions with key family members. We conducted one-on-one interviews with ten second-generation (G2) family members, while all 50 family shareholders participated in an online survey.

Through these interactions, the family identified four core goals for their investments:

• Control
• Community Impact
• Business Support
• A Balance of Income and Growth

With these objectives in mind, Trinity conducted architectural feasibility studies and development modeling to determine the underlying land value of the family’s properties. We also evaluated the other real estate holdings in the family’s portfolio, uncovering significant opportunities to unlock shareholder value, especially from the properties they already owned.

Outcome

The most significant value opportunities were found in the family-owned sites. With significant development potential, the sites represent the opportunity to increase income and cash flow by 2-3x. Trinity has been retained to guide the development process of these sites, working alongside the family, their architect, and other advisors to maximize the family’s equity and capitalize on these high-value opportunities.