Coronado Center

The Challenge
Coronado Center is the largest Regional Shopping Mall in Albuquerque with over 1.1 million square feet of retail space. Heitman had owned this property for over twenty years and felt it was time to sell there only holding in New Mexico. Rents had appreciated only nominally in this market but they needed an aggressive national marketing approach to create a “feeding frenzy” among competing buyers.

The Solution
Our team joined forces with Eastdil out of their Los Angeles office to provide a national marketing reach with strong, local market knowledge and information. After the assemblage of a quality, marketing package, inquiries were sent to the national and regional market players. At the time of this marketing effort, we identified the top six national REIT's who had an appetite for the acquisition of regional mall properties.

All six of the targeted REIT's identified this property as a qualified purchase and offers were received from every group. The ability to let all Buyers know of the competitive playing field caused each group to aggressively price their offers which resulted in a final purchase price at a cap rate below 7%. When the assignment was originally discussed, the owners expectations were to achieve an 8% cap rate and the final closed price exceeded their expectation by over 100 basis points.

Return to Case Studies