All Success Stories

The Market at Hays Farm

2020 investment in a 111K SF retail redevelopment.

Oakwood's Approach

Hunstville, AL Grocery-Anchored Retail Redevelopment

  • Prior to land acquisition, the Partnership executed a 20-year lease with Publix Super Market and had significant leasing demand for the to-be-developed 34K SF of shop space.
  • The development underwrote to a compelling 39% margin.
  • The Partnership elected to redevelop the entire retail site except for the existing 28K SF Staples store, which was leased at ~50% below market.
  • Seller-financing with accruing interest was used to maximize returns on the outparcels.
  • At completion, the total project cost was 3% under budget.
  • Original underwriting anticipated a sale in Year 3 upon stabilization however, the Property was ultimately sold via a 12-property marketed portfolio recapitalization to an institutional buyer upon completion, 15 months earlier than planned. The exit cap was 100bps better than underwriting.
  • Following the sale, the Partnership retained three outparcels and one under-construction shop building. Two of the outparcels and the shop building have since been sold.