District Equities’ creative approach to retail and clear commitment to our clients – owners and tenants alike – is what drives us. As their ally, advocate and representative, we go far beyond the scope of a conventional broker. We are diligent and focused, and our hands-on involvement goes beyond finding retail spaces, but is deeply rooted in adding value to their overall growth strategy.
Challenging projects showcase all, our ability to overcome project hurdles, our vast network of consultants who we will manage and coordinate throughout, and our invaluable industry relationships that prove paramount in finding solutions that benefit everyone involved.
Case Study #1
Bowlero – Bowling Entertainment
[Landlord Representation]
Landlord: Dweck Properties
Tenant: Bowlero
Background: Prior to taking on the leasing assignment we performed a market analysis and studied any factors we believed would influence the retail at the subject property. This included a macro overview of the retail trends across the nation and our region. We then dove deeper into the competitive submarkets before exploring the merchandising for the building itself. We looked at everything from the distant past to the present in order to have a complete understanding of where the market was and therefore where it is going.
Challenge: While we presented the top retail prospects for the vacancies in the property, we also recommended that ownership be careful as there was an option notice coming up on the 50,000 square foot Tenant (GDIT) that occupied the below grade center of the property. We began exploring what the building would look like if the large space became vacant.
In January of 2017 we learned that the Tenant would not renew, leaving a massive vacancy at the property with nothing but a single doorway as the entrance. We had to not only find a Tenant to occupy the space but reimagine and recreate space so that it could be successful retail. This included the contemplation of buying out all of the existing Tenants in order to create new loading docks. None of our initial solutions were too creative given that we were left with a 50,000sf vacancy in the center of the building.
We pursued multiple anchor Tenant strategies, including grocery, fitness and entertainment.
Solution: The Anchor Tenants we approached were yielding little concrete interest. Amazon was still years from announcing their HQ2 search and interest in Crystal City – now National Landing – was not strong. We needed to take a different approach.
We engaged Perkins Eastman to assist us with a layout for entertainment use. We had done a void analysis as part of our market study and realized that we were in an open zone for Bowling Alleys.
We finalized the bowling layout and presented our plans to different bowling operators. We learned through this process that unless the premise was a perfect rectangle most bowling operators would not even consider it.
Finally, we got the ear of Bowlero who initially told us “this layout would never work” – yet it was enough to spark their interest because we were able to fit the number of lanes they required into the space (30). They took the CAD files and began working on layouts of their own.
SEALING THE DEAL: The LOI was initiated in February 2018. The lease was executed in October of 2018.
With the lease signed we had some major Landlord work to embark upon to ready the space for a bowling alley. Since there are apartments above the space, we began a massive demolition and sound proofing effort. There was also an existing Tenant occupying the space that would be necessary for Bowlero’s entrance. Over the course of a few months we successfully negotiated the buyout of that Tenant, clearing the final contingencies.
BOWELRO OPENEND IN JULY 2020! #MakingLemonade
Case Study #2
Silver Branch Brewing Company
[Tenant Representation]
Client: Silver Branch Brewery
Landlord: Brookfield
Background: We started working with Christian Layke and Brett Robison in 2017 when the two decided to convert their passion for beer into a beer business. Their initial idea was to start a brewery but after many brainstorming sessions – some over beer – and more serious business plan analysis and proforma studies, we arrived at the plan to pursue a production brewery and taproom. We found a unique location in Silver Spring in Brookfield’s Metro Plaza which had recently started with renovations and updates to revitalize its office buildings. One major goal was to bring a dynamic anchor tenant to the Plaza and Silver Branch Brewing Company fit the bill but the site didn’t come without its challenges.
Challenge: The site, a multi-story downtown office and retail building, needed to be able to support a production brewery, both physically and operationally. A lift from the loading dock to the space would be required to bring in supplies and to ship out product and spent grain. Additionally, the structure needed to be able to support the weight of brewing tanks and a forklift. And finally, a suitable and code-compliant space inside the garage needed to be identified to house the boiler and chiller. So, in order to determine that this location was even feasible for what Christian and Brett had in mind, a lot of due diligence and analysis had to happen as we wanted to ensure that everyone – Silver Branch and Brookfield alike – was comfortable and confident signing a lease.
Solution: We connected Christian and Brett with one of our trusted consultants, Ryan Beible of STONE, who specializes in construction/development management. He came in and helped determine that Silver Branch’s needs were achievable at this site:
the lift could fit in the loading dock and be installed without major structural modifications;
the garage could house the chiller and boiler, and venting to the outside was possible;
the building could support the additional weight the brewery would place on it.
Additionally, Beible produced complete project cost estimates for Christian and Brett. Once the lease was signed, he continued to help us solve major issues and find creative solutions to the challenges we faced yet kept the project on a tight deadline and budget. He was an invaluable resource for Christian and Brett and his role was paramount to the success of Silver Branch Brewery.
It is that direct and close involvement where we focus on all aspects of our clients’ success facilitating and assisting beyond the expected real estate brokerage scope but ensuring the long-term and sustained success of our clients.
