Tri-Land to Renovate 634,000-SF Portfolio

KANSAS CITY, MO-Tri-Land Properties is working on a redevelopment plan for five dated shopping centers, totaling 634,000 sf, starting with an $8-million refurbishment project at Cherokee South Plaza in Overland Park, KS. The company bought Cherokee in 2005, and the other four in May and October 2006.

The other Kansas centers are Ten Quivira Shopping Center (175,000 sf) in Shawnee and Devonshire Village (49,000 sf) in Olathe. The company also bought two centers in Missouri--Brywood Shopping Center (208,000 sf) in Raytown and Blue Springs Market (84,000 sf) in Blue Springs. The company specializes in buying struggling centers and spending to redevelop them, owning and managing 2.8 million sf of commercial retail space.

Hugh Robinson, an executive vice president with the company, says the Cherokee property will be the first of the group to undergo changes. The property was 90% occupied when it was bought in 2005, but now it's 60% vacant. "It's a strip center that was built in the 1960s, and hasn't seen a significant capital investment since then. It was mostly occupied by small, independent tenants, very few national tenants," Robinson tells GlobeSt.com. He says the company knew when it bought the property that a grocery store at the site would go out of business soon after the sale.

Now, he says Tri-Land will demolish 30,000 sf of the building, and is negotiating with Walgreens to finalize a lease for the property, as well as with Starbucks and a hair salon. Some tenants will stay, such as a Hallmark and Kansas Sampler. The renovations will include new fascia, building signs, site lighting, accent lighting and improved landscaping. Construction will start this summer. Once the improvements are made, the average leases at the center will be $18 to $25 per sf, Robinson says.

The company has applied for economic incentives from the city for the Cherokee property, but will not for each property, Robinson says. He also says he doesn't know how much will be spent at each of the properties on refurbishments. "We're a lot further along on Cherokee, the others haven't fully taken form like this one," Robinson says. "It will likely take a couple years to finish them all, they'll be worked on simultaneously."