Case Study: Food Garden Market Leases Retail Space at 58 Saint Marks Place - A Catalyst for Boerum Hill's Growth and Trend-Spotting in a Developing Market
Market Overview:
Boerum Hill, a charming neighborhood in Brooklyn, is experiencing an unprecedented wave of growth and transformation. With numerous residential developments in various phases of construction, the neighborhood is poised for substantial change. At the heart of this evolution lies the lease transaction between the esteemed grocer, "Food Garden Market," and Avdoo & Partners Development at the luxury mixed-use condo building located at 58 Saint Marks Place. This case study not only showcases the symbiotic relationship between these developments and the strategic vision of Food Garden Market but also highlights Verada Retail's trend-spotting expertise in identifying and capitalizing on emerging market trends.
Transaction Details:
Property Type: Luxury mixed-use condo building w/ 100 Units
Asset Class: Retail Condo
Owner: Avdoo & Partners Development
Size: 11,800 SF
Tenant: Grocer “Food Garden Market”
Market: Boerum Hill
Lease Length: 20 years
Asking Rent: $65 per foot
The Challenge:
With Boerum Hill on the cusp of a transformation, both the landlord, Avdoo & Partners Development, and Food Garden Market faced the challenge of aligning their vision within the evolving marketplace. The leasing deal was further complicated by the dynamic growth in the area, including approximately 1,600 new residential units on 4th Avenue and another 8,000 units on the horizon in Gowanus. The need was not just to secure a tenant but to choose a partner who could thrive in a rapidly changing neighborhood.
The Solution:
- Strategic Leasing by Food Garden Market: Food Garden Market displayed remarkable foresight by submitting a Letter of Intent (LOI) a full 18 months before the completion of the building for the entire 11,800SF of retail space. Their commitment to long-term success was evident in this deal. This strategic approach not only secured prime retail space but allowed Food Garden Market to make an indelible mark on the community.
- Strategic Lease Timing: The lease was signed one year ahead of the anticipated TCO, a pivotal move that allowed ownership to capitalize on the entire retail condo pre-delivery. This strategic timing not only added a sought-after neighborhood amenity at the base of the building but also demonstrated the forward-thinking approach of both the landlord and tenant. Additionally, by securing a long-term lease with a credit-worthy tenant, the building's ownership gained stability and enhanced the overall value of the property. This foresight ensured that the development exceeded projected timelines and offered a valuable asset to the growing community.
- Expertise of Verada Retail: Verada Retail played a pivotal role in connecting Food Garden Market with the ideal space. As a dual agent, they represented both the landlord, Avdoo & Partners, and the tenant, demonstrating their ability to create mutually beneficial agreements. Their deep market knowledge allowed them to understand the evolving dynamics and align Food Garden Market's vision with the changing neighborhood.
Trend Spotting:
This case study is a shining example of how Verada Retail correctly identified and capitalized on emerging market trends. They recognized the growing demand for mixed-use spaces and specific retail formats, especially premium grocers, in the context of a premium building situated in a developing market. By securing Food Garden Market for the luxury mixed-use condo building at 58 Saint Marks Place, Verada Retail not only met the immediate needs of the market but also set a trend that is poised to shape the future of this vibrant neighborhood.
Outcomes:
As the Boerum Hill neighborhood anticipates the completion of approximately 1,600 new residential units on 4th Avenue, Food Garden Market's strategic positioning within the luxury mixed-use condo building not only serves the local community but also adds to the area's appeal. The impending arrival of an additional 8,000 units in Gowanus solidifies the importance of securing a quality tenant early in the development process.
In the words of Krystyn Gatoo, owner of Avdoo & Partners Development, "Brendan and Nate are fantastic to work with. They were able to secure a quality tenant for us in the early stages of construction of a new development, creating tremendous value and aiding us in achieving our targeted returns and exceeding projected timelines."
This case study serves as an inspiring example of trend-spotting and strategic decision-making, where the foresight of all involved parties, along with Verada Retail's market expertise, align perfectly to shape the future of Boerum Hill and beyond. Food Garden Market's presence in the luxury mixed-use condo building at 58 Saint Marks Place is not just a lease transaction; it's a forward-thinking trend that will influence the direction of this dynamic neighborhood.
