American Realty Advisors

American Realty Advisors (ARA) is a commercial real estate investment advisor with $4.4 billion in assets under management. The firm, headquartered in Los Angeles, Calif., owns core and value-add properties throughout the United States.

Challenges

• ARA sought a buyer for Apple Valley Square, a 100% leased, 185,000-square-foot shopping center anchored by Rainbow Foods located in suburban Minneapolis, Minnesota.
• The shopping center was well located, fully leased, and in excellent condition, but the anchor grocery tenant was experiencing declining sales and was being acquired by Roundy’s via their purchase of Fleming from the bankruptcy court. This bankruptcy resulted in the tenant’s inability to exercise its lease options, leaving a short-term lease in place.

Solutions

• NorthMarq Investment Services created a strategy to maximize value for ARA while simultaneously addressing the ominous grocer tenant situation.
• NorthMarq worked with Roundy’s and ARA to negotiate a new, long-term lease.
• The terms of the lease extension were negotiated to contribute significant value to the property.
• NorthMarq Investment Services brought the property to market, receiving more than 15 offers.
• Three institutional investors were invited to participate in a “best and final” round of bidding.
• Through this process, offers were driving above the asking price and the property sold well above the seller’s expectations.