SouthStar is as passionate about relationships as we are about real estate
SouthStar purchased a 150,000-square-foot shopping center on 22 acres in the Nashville suburb of Hermitage. The center was 45 percent vacant and needed extensive renovations. The greatest challenge SouthStar faced was working out terminations or buyouts of all remaining tenants. Most notable was a church, which had signed a 10-year lease with the former owner. The church agreed to move out with a lease buyout of $750,000. Because the center was located at a major intersection, SouthStar was able to sell the property to Wal-Mart for a Supercenter. While Wal-Mart’s purchase of the shopping center covered all of SouthStar’s investment, including tenant buyouts, SouthStar retained ownership of all the outlets with no remaining debt. These outlets included a Taco Bell, Blockbuster Video, and AmSouth Bank, which together brought in $180,000 per year in rental income for SouthStar.