The acquisition and successful repositioning of the Village Shopping Center in Boulder is a prime example of how Gart Properties identifies underperforming assets, then applies capital and expertise to help properties achieve their full potential. We were successful in acquiring The Village because we identified strategies for adding value that neither the seller nor any of the other potential purchasers had considered. Our two-pronged approach involved remerchandising the property to increase daily traffic and sales performance, plus optimizing the zoning and entitlements to enable the development of an additional 100,000 square feet of building area.
During the early stages of the renovation process, we successfully negotiated the sale of an 80% interest in the property to an institutional partner. This move not only provided a significant return to Gart Properties and our investors, but also retained a 20% ownership stake in the renovated and remerchandised asset. The relationship we forged with this institutional partner eventually led to the acquisition of the Denver Pavilions under a similar structure. We continue to work closely with each other on prospective acquisitions to this day.