Case Study VIII

The Problem

A Connecticut retail mall was suffering cash flow deficiencies as a result of rising costs and poorly constructed leases which were inherited from the previous owner. The mall was on the verge of bankruptcy.

The Work

A.L. Piccolo & Co., Inc.’s real estate specialist performed a complete diagnosis of the mall. The management was replaced with A.L. Piccolo & Co., Inc. acting as managing agent. Costs were cut drastically, and leases were restructured. In addition, a refinancing of the mall was undertaken.

The Result

The client turned a positive cash flow after just 1 year. Over time, higher end tenants replaced the older, inherited tenants. Efficiencies were implemented and the mall was beautified. After several years, A.L. Piccolo & Co., Inc. arranged for its sale at a very high multiple of its improved cash flow.