In 2013 we saw the opportunity to acquire Mission Trace. Just minutes away from downtown Denver, the property sits at a four-way signalized corner fronting a high-traffic boulevard. While 90% occupied and with a good leasing history, the center suffered from a poor tenant mix and physical neglect. The two key anchors, Natural Grocers and Red Robin, occupied premises that were tired and inconsistent with their modern branding. More critically, their leases were up in the very near term. We needed to keep them in place.
We quickly devised remodeling plans for the property that created a positive identity. Our tax strategy would shield cash flow to help to fund upgrades and the refining of our tenant mix. While still in escrow, we committed Natural Grocers to a ten-year lease extension while our prior relationship with Red Robin brought an immediate five-year extension.
Eventually, the property’s modernization led Natural Grocers to expand to 20,000 square feet and extend their lease to a fifteen-year term. Our hands-on involvement, deal-making skills and the ability to manage unexpected challenges, allowed us to reposition the center.
Today, Mission Trace has new life. With a regional organic grocer as anchor, pediatric medical and dental, childcare, women’s cross-fit gym, salon, and a ‘green’ dry cleaner, the property is now an attractive, family-oriented neighborhood center with an extended average lease maturity. We attribute our success to our foundational program: Acquire well-located properties with conservative leverage to hedge against setbacks, implement a system of continual improvement, and wait for opportunities to arise.
