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Location CANTON, MI
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Size ±4,925 SF
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Type MULTI-Tenant Retail
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Service GROUND UP DEVELOPMENT
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Year Purchased 2015
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Year Sold 2017
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When SimonCRE set out to develop a multi-tenant retail center, located between a Target/Kohl’s power center and a Walmart Supercenter, the developer/owner knew the site could eventually hold more potential.
So, it was no accident SimonCRE designed it so that a smaller space of about 2,000 square feet or less with a drive-thru could be envisioned in the future.
When the developer was contracted to build out a space in that center for a Verizon Wireless store and sold it as a net lease property, the buyer reached back out for assistance in developing further — as anticipated.
So, after SimonCRE sold the property to a high-net worth investor, it was only a matter of time before it would attract interest from prospects. Sure enough, it became necessary to hire a developer that is proficient in ground up development because the national restaurant, Jimmy John’s approached the buyer. The owner preferred to be a passive investor and chose SimonCRE’s fee development services to expand the building.
Challenges to overcome included working through issues such as obtaining drive-thru and entitlement approvals, negotiating the letter of intent (LOI) and lease, construction coordination, and more for the owner.
SimonCRE was hired to get the job done because the owner knew it would move swiftly before the potential tenant looked elsewhere. For this fee development deal, SimonCRE hired all the consultants, worked through the issues listed above, and helped the owner with the lease to welcome the new tenant: Jimmy John’s. The developer had orchestrated all the construction activities, subsequently adding value to the site that wasn’t there before.
As mentioned, the expansion was proactively planned for by the developer. Before Jimmy John’s was even in the picture, the proper amount of utilities, drainage, and parking were installed for the potential buildout.
Furthermore, the original tenant’s lease was negotiated to allot for the possibility of extending it into a multi-tenant retail building. This effort saved time and money down the line because a lease amendment wouldn’t be needed to bring on the new tenant.
What started as a single Verizon store, grew to a more advantageous infill development along the main retail corridor in Canton, MI. The property benefited from yielding a higher return and the addition of a stable tenant.
The site is conveniently nestled between a Target/Kohl’s power center to the west and a Walmart Supercenter, Home Depot, and Kroger to the east.
“We knew from the start that this property held more potential and were glad to find a national tenant like Jimmy John’s that saw the vision as well,” said Joshua Simon, Chief Executive Officer and Founder of SimonCRE. “We believe this project does a great job of not only demonstrating our fee development services but also our ability to deliver the completed project in a timely manner.”