1/31/2022 | creating value
By working with Burlington Stores to downsize to their newest prototype, Brixmor Property Group redeveloped Seminole Plaza, located near Tampa, Florida, adding a daily needs grocer, upgrading the center’s appearance, and improving the store lineup. As a result of the commercial redevelopment, the center’s monthly traffic has increased 31%, illustrating how the center better serves the Seminole community.
The project created $5 million in additional value through a $10 million investment at a 9% incremental NOI yield. Follow-on leasing drove further value as small shop occupancy increased by 30% and annual base rent increased by 29%, as of fourth quarter 2021.
“This project is a great example of our purpose as a company which is to create centers that truly are the center of the communities they serve,” said Jim Taylor, chief executive officer & president of Brixmor.
Located 24 miles southwest of Tampa, retail property Seminole Plaza is positioned at the two main traffic corridors of Seminole Boulevard and Park Boulevard with a combined 69,000 vehicles daily.
The project began with Burlington downsizing their existing 87,000-square-foot store to reflect their latest prototype at 55,000 square feet. Mike Shanahan, senior vice president of construction and real estate for Burlington Stores, explains the reason for the smaller stores.
“We’ve done considerable customer research over the last several years,” said Shanahan. “Consumers wanted a smaller racetrack footprint, so they can hunt for their treasures more efficiently and transact faster. The smaller footprint, as long as they can find their deals every visit, was better according to our customers.”
The smaller Burlington footprint freed up space for the construction of a 33,000-square-foot Sprouts Farmers Market, adding an essential grocer and driving daily traffic to the center.
Partnering with retailers to streamline the leasing process across multiple regions was the genesis of Brixmor’s National Accounts program. National Accounts assigns a single point of contact for over 500 national tenants, allowing Brixmor to better understand, anticipate and facilitate retailers’ needs, increasing productivity and communication. The National Accounts representatives are thoroughly familiar with their retailers’ businesses, acting as an extension of their team.
Steve Kaufman, senior vice president of National Accounts for Brixmor, has worked with Burlington Stores for 16 years. “The relationship between Brixmor and Burlington has only strengthened throughout the years as both companies have grown,” said Kaufman. “It’s a real partnership. We have many retail space opportunities throughout our portfolio to make successful Burlington deals.”
Creating a center that best fits the local community extends beyond the stores. Brett Milke, vice president of re/development, was mindful of the design and the impact of construction on existing tenants. He designed an anchor façade detail separate from the building which allowed the retailers to stay open during construction, minimizing disruption to their operations. To improve the customer shopping experience and overall aesthetic, he added pergolas and bench seating along the building front to close the gaps between the entrances of the junior anchors. The entire redevelopment project took two years.
Working on Seminole Plaza was personal for Brett who grew up in the area. “It felt good to give back to the community that raised me,” said Milke.
Learn more about the property by visiting the links below.