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Client Property Revitalized by New Construction, New Strategy

Date

November 23, 2012

Read Time

2 minutes

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Jeffrey Friedman and Abe Trieger, partners in the Real Estate Group, had a client with an attractive, multifamily mixed-used property—one that it wanted to make even better.  The two embraced their client’s ambitious plan, leading it through the redevelopment of its 100,000 square-foot retail concourse and the addition of 50,000 square feet of rentable space on its third floor.

The changes were designed to make the building more attractive to existing residential tenants, prospective residents, and also to attract daily commuters to the property’s street-level retail stores and fitness club. Trieger worked closely with the client’s architect and general contractor, negotiating the design and build-out agreements for the redesign and construction of the retail concourse. Friedman negotiated two major amenity leases, one with a national grocery retailer and the other with a franchise fitness club to occupy space in the retail concourse as well as the entire third floor. 

Parameters

Primary Goals:
• Redevelop the ground-floor retail concourse and add a third floor that would offer attractive amenities and a state-of-the-art fitness club.
• Clear out existing retail stores in preparation for the concourse redesign.
• Make the building more attractive to tenants, prospective residents, and thousands of daily commuters.

Concerns and Issues:
• The new construction required building a new structure on top of the existing one, and putting a pool over the garage.
• Negotiations with various parties were ongoing during construction, adding new challenges to the project.
• The project began in 2008, in the middle of the recession.
• The franchise fitness club had a location a few miles away and was concerned about losing existing members to its new club.
• The client had already agreed to a smaller retail grocer occupying the redesigned concourse before a national retail store expressed interest.

What We Did

Over two and half years, Friedman and Trieger worked closely with the client’s internal team, the architect, and general contractor to negotiate numerous agreements, including those necessary for the the redesign, construction, and clearing of the retail concourse. Some leases simply expired, others required the client to offer retailers a buyout, while others required eviction. Friedman drafted the necessary documents for each situation and counseled the team on its approach to each retailer. He negotiated two major amenity leases to include a national grocery retailer and a franchise fitness club in the retail concourse, assisting his client in structuring resident gym memberships and dissolving an earlier agreement with a smaller grocer. 

Friedman and Trieger constantly evaluated and reevaluated the project goals, and on frequent trips to the site, ensured everything was operating as scheduled. With dozens of people involved, they often found themselves bridging misunderstandings, always making sure to fully brief the client on any necessary details.


Filed under: Real Estate

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