The owners of Windsor Park Place shopping center have successfully sold the property to an out-of-market buyer after executing a value-add investment strategy. In 2019, Foresite’s Stephen Berchelmann drafted a lease marketing plan for the 66,000 square foot center for the new ownership. Stephen then implemented the aggressive lease-up strategy, and facilitated the sale of the property in March 2023.

The center was purchased with occupancy below 70% in 2019.

Property Background

Windsor Park Place is a 66,300 square foot center located in on the densely populated north-east side of San Antonio. The property was purchased in 2019, with occupancy below 70%, from an Austin-based investor looking to liquidate the asset. Stephen, recognizing the potential in the property, worked with the new buyers to ensure the value was maximized.

Foresite’s Stephen Berchelmann, their agent, successfully brought occupancy to over 90% and then partnered with Alexandria Tatem to bring the property to the market.

Lease-Up Strategy

Despite the challenges posed by Covid-19 on retail properties, the owners were able to increase occupancy to over 90% with the help of their agent, Stephen Berchelmann. After reaching the target occupancy threshold, Berchelmann partnered with Alexandria Tatem to bring the property to the market, where they successfully engaged an out-of-market buyer.

The owners were able to exit the investment profitably, enjoying a 55% increase in the property’s market value from their purchase. They are now engaged in a 1031 exchange to acquire a new property.

Interest rates increased three times during the marketing and sale of the property.

Interest Rates and Buyer Selection

Despite headwinds from rising interest rates, the property received multiple offers and sold at a premium due to its leasing success. The buyers were selected for their experience and understanding of market conditions, as well as their proven ability to close deals successfully.

“Our goal was to get Windsor Park Place into a position where it could be sold,” said Mr. Berchelmann. “We achieved this by using our knowledge of current market conditions and proactive leasing and management strategies, which allowed us to achieve an outcome that was favorable for all parties involved.”

This project was a prime example of a full service brokerage firm working together to maximize value. Stephen Berchelmann worked diligently to increase the occupancy of the property. The property management team maintained and improved the property and kept excellent financial records which enabled the new buyer to easily secure funding for the investment and successfully close the deal. Stephen then worked with Alexandria Tatem to list and sell the property through the company’s investment sales department.