Shopping Center Redevelopment
Huntsville West Shopping Center
Huntsville, Alabama

Acquired - March, 1989
After Redevelopment & Expansion -1996
178,400 sq.ft.  
213,888 sq.ft.
Original   Current  
Winn Dixie Supermarket   Office Depot Big Lots
Hills Dept. Store   Goody's Family Clothing Hibbetts Sporting Goods
    Fred's Drugs Hometime Buffet

1989: Started asbestos abatement program where we removed asbestos from public areas and tenant spaces as they became vacant. Bought out 25,600 sq. ft, Winn-Dixie Supermarket lease which was to expire in 1996 and re-rented space to Office Depot increasing Net Operating Income by 35%.
1990: After extensive negotiations with the City, installed a traffic light at the main entrance of the shopping center, thus greatly improving access and customer traffic.
1990-92: Re-rented small store spaces to improve quality of tenants. Maintained "short term" leases to facilitate anticipated future renovation and major "restructuring" of tenant mix.
1993: Replaced movie theater showing second run movies in a 10,640 sq. ft. freestanding building with national restaurant chain - Old Country Buffet, increasing original Net Operating Income by 55% over NOI at acquisition.
1994: After several years of negotiations, Woolworth Corporation agreed to terminate its lease on a 103,161 sq. ft. store it had subleased to Hills Department Stores allowing the final phase of the "turnaround" of the center to commence:

Divided the former department store into four completely new stores which were leased to Drugs for Less, Michaels Arts & Crafts, Hibbetts Sporting Goods and Campo Electronics at over 350% rental rate increase.

Re-rented small store spaces on long term leases at up to double the prior rents.

Net Operating Income is increased by 237% over NOI at Acquisition.

1995: Concluded final phase of the turnaround:

Completely renovated the Shopping Center with new roadside pylon, new canopy facade, rebuild parking lot and improved parking lot lighting.

Additional small store spaces are leased bringing occupancy to 98%. Credit and chain store tenants now occupy 90% of the Center.

Expanded the Shopping Center with the construction of a new 35,000 sq. ft. Goody's Family Clothing store, further increasing Net Operating Income to 375% of NOI at acquisition.

Internal rate of return exceeds 54%.

In November the property is refinanced for more than double the then first mortgage balance.

1998: Freestanding building demolished to create new out parcel padsite ground leased to Papa John's Restaurant at two times the former rent.
2001: Replace previously closed 29,700 sq. ft. Campo Electronics store with Big Lots Stores (NYSE: BLI).

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