Success Stories
- Moving the Unmovable
- Broadway Crossing
- Circuit City Pavilion
- Dollars at Stake
- Yours or Mine?
- Seeing Into The Future
Moving the Unmovable
Situation.
Eckerd Drug wanted to build a new freestanding prototype store on Highway 80 in Longview, Texas. However, the company didn't want to close its store on the site while the new store was being built. The existing store had been leased from seven property owners in the 1970s. They owned the building plus the surrounding two acres and they weren't interested in selling.
Salvo's mark.
Salvo created and executed a plan for the project. We negotiated with the seven property owners offering them the right to buy back the property and the new building when completed.
Salvo convinced the city of Longview to abandon an alley on the site and relocate vital utilities. We resolved tough environmental problems by working with governmental authorities to clean up gasoline in the ground water.
Salvo presented Eckerd with a lease to stay at its current location while we built the new store just five feet away. When the new facility was completed, we demolished the old store and paved the area for parking. Salvo sold the entire project back to the original seven owners—and the new store is one of the company's top performers.
Broadway Crossing
Situation.
Several retailers wanted to be located on a particular 65-acre parcel in Tyler, Texas. This site was a three-parcel assemblage with a creek running through the middle. The site was in partial bankruptcy and had almost $3 million in tax and other liens. Due to the impact of recession in the area, financing was not available, and the project had to be developed in phases.
Salvo's mark.
Salvo met with the owners, and agreed to close on 12 acres in 30 days to win out over competing sites. We ensured a smooth closing by negotiating with lien holders and attorneys to secure a clean title. We began development by moving a massive amount of dirt and building two large box culverts to encase the creek. We secured approval from the Federal Emergency Management Agency and negotiated with the City of Tyler over signage regulation to allow two major pylon signs.
Salvo has made agreements with 14 retailers to join the project. They include Applebees, Best Buy, Chic-fil-A, Drug Emporium, Food Lion, Lowe's Home Improvement Warehouse, Marshalls, McDonald's, Olive Garden, Outback Steakhouse, PETsmart, Ryan's Buffet, Shoe Carnival and Spring Creek Barbecue.
The center is the largest open-air center in Tyler and draws customers from a 25-mile area. The Tyler Garden Club presented Salvo with a certificate of appreciation for our extra efforts with landscaping and design.
Circuit City Pavilion
Situation.
Circuit City wanted a location in Tyler, Texas, close to Broadway Square mall.
Salvo's mark.
Salvo identified a piece of property diagonally across from the mall that was occupied by an apartment complex. We contacted the owner of the site, who agreed to sell.
After contracting for the property, we began the one-on-one process of relocating the 90 residents in the complex, resolving lease and timing issues. Because the site flooded when it rained, we engineered a box culvert system under the project to improve drainage. We also negotiated successfully with the City of Tyler to change the property's zoning from residential to commercial.
To ensure a smooth transition within the neighborhood, we included area homeowners in the project and made them a part of the design and development process. We secured two additional retailers for the project with strong neighborhood appeal, Barnes and Noble and Eckerd Drug, and installed attractive landscaping with a Mediterranean motif.
Dollars at Stake
Situation.
Eckerd Drug was in a race with a competitor to get its store open first at a major intersection in North Richland Hills, Texas. The hard corner Eckerd wanted was occupied and was part of a four-parcel assemblage.
Salvo's mark.
Salvo negotiated with the tenant on a buyout and secured the location. Upon review, some environmental concerns came to light. Salvo brought in a trusted team to clean up the site in two weeks.
Salvo then brought in Westwood Construction to ensure that the timeline could be kept. As planned, the Eckerd opened one month before its competitor.
The site outpositions the competitor with a better corner, visibility and access. Eckerd dominates the intersection.
Yours or Mine?
Situation.
Eckerd Drug wanted to locate a store on Gilmer Road in Longview, Texas -but so did its top competitors in the market. Eckerd faced the challenge of securing the best site, which was owned by a retail grocery chain, and dealing with issues regarding financing and future valuation of the site.
Salvo's mark.
Salvo went in to negotiate with the retail grocery chain on a six-acre ground lease. In addition, Salvo worked out an agreement to keep an existing building on the property and build the new store around it. The construction lender was hesitant to extend a loan on a ground lease, which had to be renegotiated because of a percentage rent clause and rent increases. Salvo put in more equity, which reduced its returns, but enabled Eckerd to secure the site over its competitors.
Today, the Eckerd is flourishing—and the competitors were sent packing.
Seeing into the Future
Situation.
Eckerd Drug was looking for a site in a growing part of Dallas/Fort Worth, but didn't want to start construction for a few years. Eckerd determined that the McDermott/Custer area in Plano, Texas, would be a great location for Eckerd to secure.
Salvo's mark.
Salvo began to negotiate with the landowner at the same time as one of Eckerd's competitors. The hard corner was part of a 13-acre parcel, and the land owner wanted to sell it all, not just the corner.
During the negotiating process, the landowner selected Salvo because of our relationship with another retailer who might be interested in buying all or part of the rest of the land. The landowner felt Salvo could make it happen.
Salvo structured a two-phased lease with Eckerd: the first phase specified rent for the land only; the second phase increased the rent when the building was completed. Salvo had the foresight to secure a building permit for Eckerd and negotiated with the landowners to the north to bring a major sanitary sewer line through their property to provide service for Eckerd. Salvo also convinced the City of Plano to provide median and curb cuts to make the future Eckerd site more convenient. Salvo closed on the property by land banking the remaining land until a use could be found and leased the ground to Eckerd for one and a half years.
When it was time to begin construction, Eckerd provided modified plans to Salvo. We went to the City of Plano to revise the permits and completed construction on time. The store met its open date, the competitor was denied the location and the remaining property is being developed. The store has seen increased revenue each year as the area grows.
