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Spring Creek Village   |   Dallas, TX

Before Renovation (After Pictured Above)

Spring Creek Village

Year of Construction: 1964
Year of Remodel: 2010
Location: Beltline and Coit Road

JAH purchased Spring Creek Village, located at the northwest corner of Beltline and Coit Roads in Dallas, Texas, in June 2010. The property is located in the heart of the Richardson School District in the Cottonwood Park area of North Dallas/Richardson. The 15.8 acre property was originally developed as a neighborhood retail center with various ground leased buildings around the perimeter of the site. The 130,000 sq. ft. shopping center was built in phases beginning in 1964, and the entire development had remained in the hands of the original ownership. JAH recognized the value of controlling a large site in a densely populated, stable neighborhood and worked closely with the owners to structure a purchase contract that provided them with needed estate-planning flexibility.

The basic infrastructure of the property including parking, sidewalks, framing, and, more, was in good condition; however, the property needed a capital infusion, improved visibility, and a new anchor tenant. JAH implemented a redevelopment strategy to maximize the value of the property by refreshing the appearance of the entire center, increasing overall visibility, and strengthening tenancy. It was determined that two pad sites could be gained along Coit Road by demolishing a functionally obsolete and visually obstructive three story office building. This move would enhance visibility and generate additional revenue as JAH formulated a plan to upgrade the façade, add tower elements, and extend the height for increased presence. The property also had environmental issues that would have deterred conventional purchasers. The JAH team worked with TECQ to develop a cost effective remediation plan for the property. In the spirit of the remodel, a new sign policy was instituted which allows for modern signage more amenable to both national and local retailers.  

During due diligence, JAH developed a leasing strategy that identified desirable retailers that could serve the community and complement the existing tenant mix.  By analyzing the sub-market rates, JAH designed a plan that projected lease-up of the in-line space at a pricing level lower than surrounding competitors at inferior locations. Today, existing rental rates at Spring Creek are still below market, which provides opportunity for rental appreciation over time. 

At closing, the vacancy rate was 47 percent. Today Spring Creek Village is fully renovated and JAH is actively negotiating new ground leases on the former office-building pad. Just Fitness, a 20,000 sq. ft. junior anchor, recently opened, and occupancy now exceeds 80%. Spring Creek Village has proven to be a successful turnaround acquisition, with substantial potential still remaining.