Orchard Square | Green Way Markets
In August 2018, ownership of Orchard Square Shopping Center received notice that the center’s 25,000 sf anchor supermarket was permanently closing its doors and vacating.
Having been the exclusive leasing agents for the shopping center since 2012, Admiral had started quietly marketing the space to alternative anchor supermarket tenants earlier that spring, just in case the tenant opted to vacate.
Showing prospective tenants that this location was the only supermarket serving the very affluent Lewisboro community, Admiral had already developed three prospective back-up tenants by the time the existing supermarket gave notice. By December 2018, Admiral had procured a lease for the space with Green Way Markets, which is part of a multi-supermarket family chain. Green Way invested over $1.5 million to upgrade and modernize the space and facilities.
- The biggest challenge to getting the space leased was that despite the extremely high per capita household income, the density for the trade area was lower than what some supermarkets typically require, because each household had more land.
- In addition, upon initial review the gross rent seemed high, once area real estate taxes and the cost of required tenant improvements were factored in.
- By anticipating the possible vacancy, Admiral was able to preemptively identify a number of well-established supermarket groups who were looking to expand their footprint into the affluent Westchester market.
- Admiral’s understanding of the regional supermarket industry, and the major players within the industry, helped them show potential operators how this market could support the rents.
- Admiral had worked with this landlord for the prior six years, closing over 20 retail leasing deals at their various Westchester properties. Admiral had also successfully closed other supermarket deals with Green Way’s ownership with other landlords. In the end, Admiral’s history with both sides provided a basis for trust, which became very valuable while working through several thorny issues during the lease negotiations.
- The landlord was pleased to maintain their income stream, and to benefit from significant investment in their property. At the same time, Green Way Markets established a new and profitable foothold into one of their target markets.