McKinley Successfully Resolves 2,094,932 SF Retail Portfolio

January 7, 2016

McKinley Institutional Commercial Real Estate (ICRE) is pleased to announce that it has completed the successful resolution and disposition of the Albertson’s portfolio.  McKinley was engaged as the real estate advisor and manager for a 2,094,932 square foot portfolio consisting of a mix of single tenant and net leased assets, fee simple and ground lease interests on September 27, 2012.  The portfolio encompassed 45 assets in 15 states and required a coordinated transition to new management in just a few days.

The portfolio operated in a complicated entity structure, with a multitude of lease formats, variable lease terms and differing landlord/tenant responsibilities.  Many assets were “dark” and not operating, and almost all assets had building code, life safety or deferred maintenance issues at the beginning of the assignment.  McKinley began an immediate and thorough lease review, abstracting all of the key terms, assessing the status of reserves and accurately defining landlord/tenant responsibilities.  Simultaneously, a detailed physical inspection was performed at each property to ascertain the full condition of the assets, define the scope of work needed, collect the appropriate reserves and to cure outstanding defects.

McKinley successfully disposed of 42 of the 45 assets on behalf of our client in June 2013.  Its efforts included coordinating all 3rd party reports, site inspections, estoppels and guiding both legal teams through closing.  As a reflection of the quality of work, the new purchaser engaged McKinley to remain as Manager for these assets.  The remaining three assets suffered from a variety of legal disputes, in which McKinley identified and resolved the key issues and also provided expert testimony at trial.

“I’m very proud of our team members, and how they attacked this very complex assignment,” offered Matt Mason, Managing Director and Partner.  “They mobilized across 15 states, quickly decided upon the key issues and executed flawlessly to resolve the outstanding challenges.  I’m thrilled with the results that we delivered,” he added. 

“Matt and his team are uniquely qualified to handle the most complex assignments” said Kenneth P. Polsinelli, Chief Real Estate Officer.  “They fully understand how to create value across the entire spectrum of real estate issues, and leverage the strength of the entire team to ensure that no opportunity is missed.  Their depth of experience with large scale and complicated assets enables McKinley to deliver unsurpassed results for our institutional clients,” he further added.

Tags:   ICRE