Case Study - Warrenton Towne Centre
Warrenton Towne Centre, a neighborhood shopping center located at a signalized intersection along Route 211, was built in 1985. In 2007, Grand Home Furnishings, one of the center's anchors, elected not to exercise its option and closed their store at Warrenton Towne Centre. CHALLENGES At the inception of our ownership, this project faced a multitude of challenges both physical and related to market position. Tenant challenges were as follows: several soon to expire leases; an aging supermarket that had not been renovated in nearly two decades; a struggling movie theatre that had seen better days; and a regional furniture store chain that chose not to exercise its option to renew its lease on 25,000 square feet. Television advertising costs in the metro Washington, DC area proved to be prohibitive to this furniture chain's marketing strategy. SOLUTION Ownership worked with local Town authorities to obtain a letter indicating their positive attitude toward the creating of a pad site for a bank drive-through to both benefit our shoppers and the property’s bottom line. The owners replaced the entire roof of this property to eliminate pervasive water leaks. We initiated a multi-year parking lot replacement program. We instituted enhanced maintenance of the fire sprinkler system. Landlord also replaced the small box signs for satellite tenants with larger individual lettered signs that were easier to read by passing motorists. We also created a logo for the property, a new pylon sign at the entrance (previous sign was more appropriate to a housing development rather than a shopping center) and installed signs on all light posts indicating aisle locations. Delhaize Group expended over $3 million to upgrade both their store into an upscale Bloom and to replace most parking lot lights. Landlord participated in renovating the balance of the parking lot lights. Landlord also rehabilitated the space formerly occupied by a movie theater and replaced it with a Gold’s Gym franchise. Landlord divided the former furniture store space to build a space for Tuesday Morning, a national credit tenant. The remaining space was leased to Kids Haven, a temporary tenant that has won plaudits for it marketing concept. Property improvements led to the sale of a local entrepreneur’s operations to Regis which is now operating one of their Outlooks for Hair salons in this property. When Jackson Hewitt grew dissatisfied with the larger than needed space it was occupying, we moved the franchisee to a smaller space better suited to its needs. BENEFITS TO CLIENT Currently this center is working with prospects that should bring it full occupancy. The new tenant mix includes a new Bloom, Gold's Gym, Tuesday Morning; Outlooks for Hair (a brand of Regis); and a Marine Corps Career Center. Anchor tenants are experiencing high sales numbers. This center's value has increased since 2003, the date of acquisition. |
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