FORT LAUDERDALE, FL—It’s been a long road back to life for Coral Landings III. The 26.5-acre shopping center at the southeast corner of NW 62nd Avenue and Sample Road faced foreclosure in 2009. Wachovia had a $37 million mortgage on the retail asset.
Stiles swooped in and bought the Best Buy-anchored shopping center for $14 million in late 2010. Stiles obtained the property via a note purchase, foreclosure and worked quickly to secure construction financing from Wells Fargo for redevelopment. Oh, what a difference two years makes.
Stiles reports that Coral Landings III is gaining momentum as national tenants lease space. Ryan Karlin, vice president of Retail Services at Stiles, tells GlobeSt.com this
once-fractured shopping center is showing clear signs of stabilization as it nears the end of an 18-month cycle of construction and an aggressive leasing campaign. Now in the final stages of development, the shopping center has won the likes of Starbucks, MD Now, Tijuana Flats, Belly Love, and Pita Pit to its tenant roster.
When Stiles took over the shopping center, it began developing the 46,825-square foot second phase while making other renovations, including creating additional customer access points from surrounding roadways and custom build-outs for new tenants. Through the redevelopment process, occupancy at the center doubled from 40% to nearly 80%.
“Expectations for the center’s long-term growth are excellent as we are seeing a lot of activity from national tenants,” says Karlin. Stiles’ ultimate goal is to transform Coral Landings III into a class A shopping destination that meets the real needs of the surrounding residential market.
Karlin says the major catalyst for successfully executing the repositioning strategy was Stiles’ 18,300-square-foot lease with anchor grocer, ALDI, in late 2010. Stiles also renegotiated several defaulted leases.
“The ALDI lease combined with the center’s new look and easy access sparked a resurgence in tenant interest that had several national brands following suit,” said Karlin. “Coral Landings III has turned around quicker than we anticipated.”
Coral Landings III is located at the intersection of State Road 7 (441) and Sample Road. The surrounding neighborhood has more than 370,000 residents and is trafficked by nearly 100,000 cars per day. Illustrating the area’s appeal and long-term potential, several major national retailers, including Lowe’s, Home Depot, Target, Toys “R” Us and Babies “R” Us have all located within the surrounding area of Coral Landings III as well as Tru/Bru and Winn Dixie, which have opened within the past 24 months.