Alabama CCIM Chapter

Pickleball, a lease buyout, and a $9.2M shopping center sale... the CRE trifecta! In a market with no box vacancy, high construction costs, and limited land for development, it’s more important than ever for retailers to get creative.?That was the case in Vestavia Hills, AL, with Picklr - a fast-growing pickleball entertainment and retail brand. Picklr identified the closed, 28,000 square-foot former Sprouts box our team was marketing for sublease (Sprouts was still paying rent), but the sublease terms didn’t align with their vision. The solution??It’s all about control: if Picklr controlled the whole property, then they could control the lease buyout process with Sprouts, gain control of the box, and therefore control their own lease terms for a long-term investment. And that's what happened.?Picklr, along with their preferred developer, worked with our team at The Retail Companies to negotiate and coordinate a lease buyout between Sprouts contingent upon them acquiring the entire fully-leased, 33,400 square-foot shopping center.?The Picklr team purchased the fully-leased property for $9.2M.?At closing the contingent lease buyout took effect, and Picklr was in the driver's seat having gained control of the property they desired.?Picklr is now on track to serve up their first store in the Birmingham MSA. This property drew strong interest across the board due to its prime location on the high-traffic U.S. Highway 31 corridor. The sale not only reflects the property’s value but also highlights the strategic moves made by the buyer to secure long-term control of the site. This was a deal showcasing both creative deal-making and the high demand for premium retail space in a tight market. A golf clap to Bill Clements, CCIM, as he was a master in getting this one done for TRC!