Case Study 4
Pride Shopping Center – Upgrading and Revitalizing an Existing Retail Center to Maximize Investment

Pride Shopping Center was a 155,000 square foot shopping center located in the west San Fernando Valley of Los Angeles, California. It was originally built in the 1960's and had been somewhat upgraded in the 1980's but was never maximized to its real potential. Lucky Food Store, Homelife Furniture, JoAnne's Fabrics, Pep Boys and numerous smaller local tenants anchored the center.

The owners did not want to sell the center due to its great location and strong demographics. The decision was made to re-develop the center and maximize its potential. We started by negotiating with the largest anchor, Lucky (which was later merged with Albertson's Food Chain), to build a new 52,000 square foot store under a new 35-year lease at more favorable terms and rents for the landlord. We also negotiated with all the smaller local tenants to buy them out of their leases to make way for three new national tenants, Pet Smart, Harbor Freight Tools and Sav-On Drugs (now a CVS Store). Homelife Furniture was not doing well financially at the time so we were able to replace them with Homegoods, a chain under the TJ Max corporate umbrella.

In the end, we almost doubled the annual rents and increased the value of the center by over 50%. Today the center is fully leased to all national retail tenants and looks like a newly constructed shopping center. It was a tremendous value to the owners and a real benefit to the tenants and community.

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