The Challenge
H. G. Hill Realty Company owned a small grocery store in an obsolete facility on a key retail corner of a densely populated area. There were several retailers interested in the site; however, it was too small to accommodate most of their needs. The surrounding neighborhood was politically active and opposed to any change, especially one that might deprive them of their neighborhood grocery. BSM needed assemble a larger site and secure a tenant who could pay the rent for this location. The tenant would also need to be acceptable to the neighborhood.
Our Strategy
Carl Storey served as a valuable member of the team. He successfully executed the acquisition and the rezoning of additional property needed for the development of a new Harris Teeter grocery store.
The neighboring property owner was very reluctant to sell because of the tax consequences and concerns about the time constraints that were associated with a conventional exchange. On H. G. Hill’s behalf, Carl Storey designed a unique short term ground lease which gave the seller more time to identify a suitable exchange. This gave H. G. Hill fee simple ownership within a relatively short time frame. Carl served in an advisory role during the entitlement process working with neighborhood groups and public officials.
Results
H. G. Hill Realty Company was able to increase the size and value of their holdings at this key intersection. The neighborhood groups, who were initially opposed to any change at all, warmly embraced the final concept of a mixed use facility that provided a new modern grocery with office space on the upper level. This unique project is frequently referred to by local planning officials as a model of cooperation between government, neighborhood groups and a development team.