Drusilla Village is a four building, 134,200 square foot retail center which also includes a fast food restaurant on a ground lease, and a total of 31 lease agreements in place. Our valuation experience with this property dates to 2014, when a local investment group acquired the property as a value add play with the intention to renovate portions of the property and then re-lease units at higher rental rates. The scope of work called for an as-is valuation of the property based on its existing condition and the current rental rates as well as prospective market values upon completion of the proposed renovations and upon stabilization with due consideration for re-alignment of rents to market at numerous upcoming lease expirations in place. The prospective market valuation warranted a discounted cash flow analysis in which below market leases were run out for their remaining term and then re-alignment to market rates achievable following the renovation.
