Overview
The six (6) tenant, 16,000 SF strip retail center located at the entrance of Kirkwood, MO, created an excellent economic solution to the existing property.
Kirkwood Square
Retail
Challenges
The developer of the property was required to repurpose the old two-story office over retail building, where there was an existing underground parking structure. Prior to our team being brought on board, the developer was having difficulty coming up with a design to meet the economic requirements of the owner and lender. The existing building was outdated, didn’t meet current leasing requirements of tenants and the underground parking structure didn’t meet code.
Approach
Echelon was brought to the table by the real estate broker to discuss the project with the developer to see if our team could provide some insight or solutions to the design and economic constraints. In a period of two weeks, Echelon redesigned the project, estimated the new design, and developed a new Proforma model for the development. Our team was able to eliminate $2.5 million from their previous design, significantly reduce the scale of the project and the risk to the developer and lender.
Result
The developer and lender approved the new design and financial models developed by Echelon. We went on to construct the building and increase the developers value to the real estate which in turn allowed them to take it to market and sell at a low CAP rate.