Project
Larkspur Landing, a poorly leased, poorly maintained mixed use shopping center in an excellent supply constrained location adjoining the Ferry Terminal, benefited from Rockwood’s hands on repositioning and releasing efforts. We carried out an extensive renovation of the public areas and replaced an under-performing anchor with a strong Bed Bath and Beyond as the lead tenant. This change allowed us to bring in a higher caliber of small tenants and doubled the net operating income of the center.

Investment
The initial investment in the center was $23.5 million. Public space improvements and structural upgrading of many stores cost an additional $14 million for a total investment of $37.5 million.

Value Creation
Releasing of a failing grocery store to Bed Bath and Beyond increased the rent from $22 psf to $27 psf and the overall releasing program increased the net operating income from $2.3 million to $4.7 million.

The resulting strong center created then sold at an advantageous cap rate of 8% resulting in a capital gain created of $21 million.