SKB Case Study

Uptown Shopping Center – Portland, OR (SOLD)

Investment Highlights

  • Acquired from a REIT that needed quarterly earnings enhancement and was vacating Portland market
  • SKB was able to conduct extensive due diligence and engage outside consultants prior to making an offer; SKB won the asset because it submitted non-refundable earnest money concurrently with its offer
  • Class B shopping center supported by Portland’s highest per capita income, highest median home price and highest density of college educated residents
  • Near term lease rollover allowed SKB to move in-place rents to market, an increase of approximately 35%
  • SKB expanded the grocery anchor, relocated the junior anchor and improved signage, landscaping and fa├žade upgrades
  • SKB sold a portion of the parking lot in 2006 for $2.3 million for development of a 104 unit condominium project
  • Upgraded tenant mix with additions such as Starbucks, removed slow paying tenants and tenants that created a burden on parking usage
  • Increased grocery anchor’s lease rate from $9.36 psf to $19.00 psf with an extended lease term resulting in a 264% increase in revenue over expanded square footage
  • In 2007, SKB sold the asset

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