New Tom Thumb Development Planned for The Wharf in Orange Beach, Alabama
Rendering courtesy of Stirling Properties/LK Architecture
Stirling Properties announces a new Tom Thumb development planned for The Wharf mixed-use property in Orange Beach, Alabama.
Tom Thumb recently purchased 3.94 acres of land located at the intersection of Canal Road and Wharf Parkway East in Orange Beach for the development of a Tom Thumb convenience store, gas pumps and car wash. Other planned improvements for the property will also incorporate a Burger King and Cinnabon. Construction is expected to commence soon.
Jeff Barnes, CCIM, Senior Advisor with Stirling Properties, represented the seller in the transaction. Lydia Franz, with Re/Max of Orange Beach, represented Tom Thumb.
Positioned on 222 acres along the south side of the Intracoastal Waterway in Orange Beach, Alabama, The Wharf is one of the most dynamic and inviting mixed-use destinations along the Gulf Coast. Consisting of more than 380,000 square feet of commercial lease space, the current mix of tenants includes retail shopping, entertainment, bar and restaurant options, office and professional services, a 15-screen movie theater, a 10,000-seat amphitheater, a 112′ Ferris wheel, residential condominiums, convention space, meeting facilities, a 170-slip marina, and a 132-room SpringHill Suites by Marriott. Sites and land for additional development and build-to-suit also exist.
For information about available real estate at The Wharf, contact Jeff Barnes, CCIM at (251) 375-2496 or jbarnes@stirlingprop.com.
So, what’s coming next for lenders and borrowers of CRE?
Commercial real estate today is extremely dynamic. Under “normal” circumstances, that is a positive thing, but in the context of the events over the last four months, dynamic is detrimental. There has been much discussion about accelerated uses of technology in the industry and how it will impact retail, office, hospitality, multi-family and industrial real estate sectors. We hear a lot about PPP funds, rent deferrals, omnichannel strategies, decentralized supply chains, working from home and creating healthy environments for employees and customers.
One issue, though, that to this point has been largely missed is the relationship between lenders and borrowers. Over the next few years, there will unquestionably be fallout from the aforementioned discussions that will ultimately put stress on the relationship between lender and borrower in the commercial real estate space. So, what’s coming, and how do we address it?
To look at the future, the first step is to understand the underlying issues of where we are today. In this Covid-19 landscape, the stress on businesses has significantly impacted landlords across the board. Forced closures by governing authorities, diminished foot traffic in retail, vacant hotels, lower utilization of office space and disrupted supply chains are all examples of issues that tenants have faced throughout the commercial real estate sector. Even in multi-family where tenancy has remained high, and rent collections stayed strong, there is a fear that once the stimulus provided by the Federal Government is no longer a factor, collections could become a massive issue.
The effects on lenders and borrowers will be felt across the board. If tenants can’t pay rent, which, in turn forces landlords to either seek relief from their lender or not perform on loan requirements, what happens next? For the few borrowers with deep enough pockets, they could attempt to pay penalties or cover debt service themselves, but at the expense of wiping away a lifetime of work and cash reserves. Furthermore, there is no guaranty that in six months or a year down the line, there will be enough tenants paying rent to stabilize the property and sustainably cover debt payments. Some tenants have continued to stay afloat, but how long can they hold on operating at reduced capacity, unable to get stable shipments of supplies or workers. And, how long can a landlord continue to float the debt service from reserves before they are gone altogether?
So far, most landlords and tenants have recognized their unique predicament and have tried diligently to work together to bridge the gap for survival. Still, as time goes on, this will become less tenable, and there will be fallout. The same issues will inevitably arise between the lender and borrower. We already see this in the CMBS segment of our market, where both sides have less leeway to work through cash flow issues. That said, the real stress has yet to be realized across the industry.
As the crisis continues—regardless of the pace of recovery—more commercial properties will certainly be impacted in both the short- and long-term. We anticipate a significant increase in distressed properties, which will go into servicing or foreclosure. As a result, investors and property owners will be left to sort through the chaos.
At Stirling Properties, we have begun working with lenders, servicers and property owners to strategize solutions for potential problems that continue to grow as loans rollover, values decrease and properties default. While there is no one-size-fits-all solution to the issues, our Lender Solutions Program can help.
We have created a platform that, regardless of the type of lender or borrower issues, can help to alleviate the stress. Stirling Properties has a proven track record of success working with all commercial property types to develop a plan and achieve the end goal. Whether it is to stabilize an asset for the current borrower, manage a property and process through foreclosure, or ultimately find the right purchaser through asset disposition, we have the experts to achieve the desired results.
If you are an investor, property owner or lender who needs assistance with valuation, asset and property management, development or disposition services, please reach out to us. Our experienced commercial advisors are knowledgeable in various property types and market segments.
Our Lender Solutions Program can help you determine the next steps. For more information, contact Chris Abadie at (985) 246-3721 or cabadie@stirlingprop.com.
President’s Message: Now What?
As we move beyond the initial shock and awe of the Coronavirus crisis, we in the commercial real estate industry begin considering “Now What?”
The pace of change in our business was moving at lightning speed even before the pandemic, with shifts in consumer and workplace behaviors, integration of technology, changing demographics. The pandemic only served to accelerate those changes to warp speed.
What will those impacts be? While none of us know exactly the long-term effects of this unprecedented situation (my crystal ball is still a bit foggy), those able to adjust and respond to the new landscape will find opportunities.
So, here are some of my observations as I sit here contemplating what’s to come.
Retail
- Open-air shopping centers primarily anchored by essential retailers like grocery, pharmacy and dollar stores are the winners and emerging stronger than ever. Enclosed malls, particularly B and C class with department store anchors, have seen an acceleration of their struggles.
- Online shopping surged during the pandemic and is still going strong, triggering increased behavioral trends such as BOPIS (buy online, pick-up in-store), curbside pick-up and delivery options—a direction we were headed in before.
- We will see an equilibrium point in e-commerce, and successful retailers will figure out how to marry online sales with storefronts and fulfillment centers. Those retailers that can successfully integrate online and brick and mortar will be the winners.
- Retailers will accelerate the depth and breadth of data mining of their customer base to drive more business into physical stores and improve upon convenience factors and delivery options.
- Creative restaurant operators will continue to find ways to expand take-out and delivery through innovative marketing, such as partnering with community associations for delivery options/pick-up stations within individual neighborhoods.
- Food kitchens offering delivery of various selections of meal options, like Asian, Italian, burgers, and salads all under one roof, will become increasingly more popular.
Supply chain and logistics
- Already one of the fastest-growing sectors before COVID was the distribution and logistics property type. Retailers, as well as many companies that depend upon the import of goods, saw a disruption in their supply chains during the pandemic, creating months-long backlogs of soft goods (remember toilet paper!), clothing, appliances, medical supplies (PPEs!), and even outdoor/sports equipment (bikes!).
- Businesses are going to diversify and expand their sourcing of goods and supplies, so as not to be dependent on one primary source, decreasing their risks of future interruption.
- The bright side is that we expect increased demand for manufacturing, storage and distribution facilities in the U.S., presenting more opportunities for development, as well as backfilling large blocks of space. This continuing trend bodes especially well here in the Gulf South region, where we have excellent logistical infrastructure in place, such as ports, air, rail and interstate systems.
Office
- The workplace landscape was already evolving pre-COVID; now, we see new, different twists on those existing trends.
- All companies will be pressed to reevaluate their long-term office needs and contemplate space decisions, with the health and safety of employees being paramount.
- Some permanent changes we can expect to continue in the office environment are distancing requirements, enhanced sanitation, reduced touchpoints, incorporation of more outdoor spaces, increased use of technology in place of meetings, and the adoption of more hybrid work environments balancing remote and in-office personnel.
- One winner in the office real estate sector will be the low-rise or garden office park setting, which will allow companies to control their environment, design safe floor plans and office layout for employees, and avoid dense, high-rise settings with crowded elevators.
- Some companies will be willing to pay more to get what they want, spurring an increase in demand for certain office types and opportunities for adaptive reuse and conversion of old retail space into office.
Investments
- Market turmoil usually creates opportunities to buy and sell. Those creative people who can sort through the challenges and prospects will be successful.
- Investor and property owners need to understand what will come out on the other side of this as more troubled, distressed and foreclosed properties inevitably hit the market—and more so, how do we value them? More thought will need to be given to analyze the risks and opportunities accurately.
- At Stirling Properties, we have begun working with local lenders to help strategize solutions for potential problems that continue to grow as loans rollover, values decrease and properties default.
The COVID-19 crisis has undoubtedly changed the commercial real estate industry and our businesses. Still, those who can adapt and evolve will be successful, especially if they have the right people in place to effectively see and execute.
Here at Stirling Properties, our team of skilled, experienced, professional advisors is well poised to assist our clients and investors in wading through these murky waters.
My crystal ball can’t precisely predict what will happen next. However, as it relates to Stirling Properties’ ability to weather this storm through our diversity, expansion of services for our clients, and extraordinary talent, the future is pretty clear.
President’s Message: Your urgent help is needed
We are all experiencing the unprecedented ramifications of the COVID-19 pandemic. While the safety and well-being of our people are our highest concerns, many are also struggling with their businesses and livelihoods.
We are just at the beginning stages of difficult times for the retail real estate industry, especially for many of our retailers. Countless restaurants and stores have been forced to close, and others have voluntarily closed, or sales have been greatly diminished. It’s important to note that 1 out of 4 U.S. jobs is related to retail—this will affect you, your friends and family.
We need your help. Congress is currently debating relief efforts for businesses and individuals affected by the COVID-19 crisis. Please contact your elected officials and urge them to provide federal assistance.
ICSC has made it very simple to contact your Congress members and legislators through an easy to use portal – HERE—or copy this url and paste in your web browser: https://p2a.co/65LiaWv. It’s essential to act quickly.
If you have not had a chance to reach out, please take a minute to do so. This legislation is crucial to the retail real estate industry and our companies. The long-term strength of the shopping center industry is critical to the economic, civic and social viability of communities across the country.
Please feel free to share this message with friends, family and like-minded colleagues, and on your social media channels.
ICSC is reporting that our efforts are working…Congress hears us! We need to keep the momentum going. Every voice counts in helping retailers and small businesses get through this crisis.
Thank you,
Marty Mayer
Major Renovations Coming to Pan American Life Center in New Orleans’s CBD
Pan American Life Center Lobby Rendering
New cafe and food options, state-of-the-art conference center and upgraded lobby.
Stirling Properties announces major renovations to the Pan American Life Center, a 673,000-square-foot premier office building located at the corner of Poydras Street and St. Charles Avenue in New Orleans, Louisiana. Construction is currently underway for a $7 million redevelopment project that will include a renovated café, state-of-the-art conference center and upgraded ground floor lobby to better position the building in the evolving office landscape. The café and conference center will continue to be managed by Sodexo.
The café-style restaurant will be located on the 11th floor, offering professional food service and enhanced menu options for building tenants, users of the conference center and surrounding customers. The renovation work on the 11th floor will feature a modernized dining area, upgraded furniture, new flooring, LED lighting and an exciting new menu. Construction began in early January and is expected to be complete in the summer of 2020.
Pan American Life Center Cafe Rendering
During the renovation, the existing café is closed; however, a new Café Micro Market has been opened in the lobby on the first floor adjacent to Smoothie King. The Micro Market is open daily, offering hot menu items such as breakfast, soups, salads, grab-and-go sandwiches and gourmet entrees.
A modern state-of-the-art conference center will be constructed on the 11th floor featuring high-tech audio/visual equipment, a tiered-seating auditorium and a variety of attractive catering packages. Following national trends of space utilization and the desire for open, collaborative work environments and flexible seating arrangements, the new conference center will offer multi-purpose meeting space available in various sizes and configurations. Conference room reservations are expected to begin in the second quarter, with the re-opening of the conference center early in the third quarter.
Renovations to the main lobby and building entrance began late last year and are nearing completion. Upgrades include a modernized, inviting lobby with brighter wall finishes, new furniture, LED lighting, renovated restrooms and installation of an electronic directory. Renovation work is expected to be complete just in time for Mardi Gras festivities.
“The renovations underway at the Pan American Life Center will uniquely position the office tower as one of a kind in the New Orleans CBD, offering new and improved amenities for existing and future tenants. These building enhancements will make our workplace more enjoyable, and also attractive in recruiting and retaining employees,” said Jose S. Suquet, Chairman of the Board, President & CEO of Pan-American Life Insurance Group.
“IBERIABANK is looking forward to the upgrades coming to the Pan American Life Center. As a major occupant of the building, we know that these improved amenities, along with the enhanced co-working and common areas, will be a huge benefit to the tenants, our existing and future workforce, and our customers,” said Hunter Hill, New Orleans Market President for IBERIABANK.
“Stirling Properties recognizes the changing office environment. Users want more collaborative, open floor plans, ample amenities and innovative trophy projects. These trends in the commercial industry increase the need for more curated properties,” said Grady Brame, Executive Vice President with Stirling Properties. “This renovation will better position the Pan American Life Center for long-term sustainability. It’s an investment in the future workplace that will make our building more attractive and functional for current tenants and new prospects.”
Pan American Life Center is recognized as one of New Orleans’ most prestigious office towers, boasting high-quality tenants in addition to housing the national and regional headquarters of many premier corporations. Built in 1980, the granite-clad, Class A trophy tower encompasses roughly 673,000 square feet of office and retail space, as well as an eight-story parking structure. Office tenants include Pan American Life Insurance Group, IBERIABANK, Morris Bart Law Offices, McGlinchey Stafford, Merrill Lynch and Stirling Properties. First-floor retail tenants include Smoothie King, Starbucks, Tsunami and IBERIABANK. Stirling Properties’ affiliates own the property and are the exclusive management and leasing agents for the Pan American Life Center.
For more information on the Pan American Life Center, visit www.panam-neworleans.com. For leasing information, contact Gaines Seaman at gseaman@stirlingprop.com or (504) 523-4481.
Chuckles Comedy House Coming to Oakwood Center in Gretna, Louisiana
Marks third national location for new entertainment concept.
Stirling Properties announced that Chuckles Comedy House is coming to Oakwood Center (formerly Oakwood Mall) in Gretna, Louisiana, a part of the New Orleans metropolitan area. This marks the third national location for the new-to-market entertainment concept.
Chuckles Comedy House will occupy 9,855 square feet of retail space located at 197 Westbank Expressway, adjacent to New Orleans Hamburger & Seafood Co. The company is currently finalizing construction plans and is expected to open in the fall of 2020. Chuckles Comedy House features regional and national comedians, as well as a full bar and pub-style fare. Comedians like Paul Mooney, DL Hughley, Monique, Eddie Griffin, Chris Tucker, Bruce Bruce, and more have graced its stage. Chuckles Comedy House currently operates two additional locations in Memphis, Tennessee, and Jackson, Mississippi.
“Chuckles Comedy House was created to fill a void in the entertainment industry. At Chuckles, we know comedy, we know excitement, we know a good time,” said Darvis Harvey, COO of Chuckles Comedy House, New Orleans. “We are thrilled to have the opportunity to bring our exclusive concept to the Gretna community and surrounding New Orleans area, and give the people something we all love, laughter—all year round!”
“We are excited to be able to open our third Chuckles Comedy House in Gretna, and to establish a potential flagship location for our brand here in the greater New Orleans area,” said Michael Ware, Sr., CEO & Founder of Chuckles Comedy House. “We have always had a deep, personal love for the New Orleans region—visiting many times over the years—and we look forward to finally being a part of this vibrant, fun-loving community.”
Stirling Properties’ Senior Advisor Joe Gardner, CCIM represented Chuckles Comedy House in securing the lease and serves as the company’s tenant representative broker. Joe Brown, with Brookfield Properties, represented the property owner in the transaction.
“Stirling Properties is excited to welcome Chuckles Comedy House—the first of its kind in our area—to Oakwood Center and the Gretna community. Today’s consumers want entertainment and unique experiences, and we are confident this innovative concept will be a welcomed and successful addition to the greater New Orleans region, and will greatly complement the surrounding retail and restaurant establishments,” said Gardner.
Oakwood Center is a 907,145-square-foot shopping center located at the foot of the Crescent City Connection, which links the West Bank to downtown New Orleans and the historic French Quarter. The center offers a dynamic shopping experience, with a retail lineup including department stores such as Dillard’s and JCPenney alongside ALDO, Bath & Body Works, H&M, ULTA BEAUTY and more than 80 other retail and restaurant options, as well as a 380-seat foot court and children’s soft play area.
