New England Grocery Chain
New England Grocery Chain
Helping an owner value and sell a 2.5 million SF bankruptcy portfolio
The Challenge
When the national supermarket chain filed for bankruptcy in Rhode Island and Massachusetts, the second largest food distributor in North America inherited 16 shopping centers throughout Southern New England. The new owners needed to quickly determine the present value of the sites in order to incorporate them on their balance sheet. That’s when they hired Capstone Properties.
The Assignment
To represent the single largest owner of the real estate of a bankrupt Rhode Island food store chain in the strategic disposition of 2.5 million square feet of retail space.
The Solution
Capstone provided an opinion of value on the entire 2.5 million SF portfolio.Our study included market evaluation, site analysis, condition of the property portfolio, and net present value of potential investment income.Because the sizes and locations of many of the supermarkets were incompatible with current industry trends, Capstone used the redevelopment value or blocking strategy value as a key factor in determining portfolio value.
The Result
Capstone’s estimates were adopted as the client’s “book value” and this information facilitated a quick “bulk sale” by the food distributor to a national REIT.