Shopping Center Redevelopment
South Willow Shopping Center
Manchester, New Hampshire

Major Tenants:
Acquired: June, 1983
Original Current  
132,980 sq. ft., Retail
K-Mart K-Mart  
6,750 sq. ft., Restaurant
Filenes Basement Staples Superstore      

1983: At acquisition, local tenants' base rental averages $6.67 per sq. ft.
1985-86: Upgrades to property completed, coupled with extensive leasing effort.
1987: Local rental rates raised by an increase of 128% since acquisition.
1988: Negotiate termination of lease on a 6,750 sq. ft. freestanding office building. Lease space to Blockbuster Video at over 250% of the previous rate. Blockbuster spends approximately $250,000 of its own capital to upgrade building, and improves tenant base of shopping center.
Net Operating Income increases allowing the property to be refinanced, replacing two existing mortgages at 130% of the two existing mortgage balances.
1989: Net Operating Income increases from 1983 by 31%.
1991: Occupancy is at 98.3%, in spite of weak New England economy and high vacancies in the area.
1992: Execute new lease with Strawberries Records and Tapes (a national retailer), expanding them into a new larger store replacing bankrupt local operator.
1995: Occupancy of the Center brought to 100%.
1996: Negotiate an agreement with the City of Manchester and adjacent property owners for the City to pay part of the cost for the Center to close its septic system and run a new sewer line to connect with the municipal system. This creates additional parking to facilitate a future Center expansion.
2000: Obtain control of the 28,800 sq. ft. Filenes Basement store after it files for protection under Chapter 11 of the Bankruptcy Code. Lease the space to Staples Office Supply at a rent 350% higher than the rent. In connection with new Staples lease, significant improvements are made to the Staples building facade, parking lot, roof and HVAC. Inline tenant leases are extended with rents increased to the new higher market rate.
Net Operating Income increases by 221% since 1998.
2001: Increases in Net Operating Income allow for a new permanent mortgage to be funded in the first quarter that is almost twice the size of the prior mortgage.

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