Home 2 Suites by Hilton Coming to Fremaux Park in Slidell, Louisiana
Home 2 Suites By Hilton in Gonzales, Louisiana
Stirling Properties commercial real estate company announces that Home 2 Suites by Hilton is coming to Fremaux Park in Slidell, Louisiana. Fremaux Park is the mixed-use property surrounding the Fremaux Town Center retail development.
Stirling Properties recently closed on the sale of a 2.7-acre land parcel to a Developer for Home 2 Suites by Hilton for the construction of a four-story, 106-room hotel. The development will encompass 65,000 square feet of space located on the west side of Town Center Parkway, across from Fremaux Town Center. Groundbreaking and construction timing will be announced soon.
Home2 Suites by Hilton is a more affordable, all-suite extended-stay hotel featuring contemporary accommodations and customizable guest room design.
Ryan Pécot, Senior Retail Leasing and Development Advisor with Stirling Properties, represented the landlord in the transaction.
Fremaux Park is part of the roughly 350-acre regional mixed-use development located at the southwest corner of Interstate 10 and Fremaux Avenue in Slidell, Louisiana. It includes Retreat at Fremaux Town Center luxury residential apartments, Springhill Suites by Marriott (under construction), Waypoint apartment community (under construction), Saltgrass Steak House and Dana Inc. Service & Assembly Center (under construction). The adjoining Fremaux Town Center, anchored by Dillard’s, Dick’s Sporting Goods, Kohl’s and Best Buy, includes more than 640,000 square feet of retail and restaurant options. Additional phases are forthcoming with added residential, retail, industrial and office park.
For leasing or sales information, contact Ryan Pécot at 337.572.0246 / rpecot@stirlingprop.com or Bradley Cook at 985.246.3720 / bcook@stirlingprop.com.
Retail Site Selection for Fast Food Restaurants or QSRs
Retail Trends Have Changed
While smartphones and technological advances have created the convenience for consumers to do just about anything with the simple push of a button, somehow it seems our society has never been busier. We are always on the go. Studies have shown that on average, today’s consumer spends approximately 30% more time in their vehicles than ten years ago.
Part #2: Fast Food or Quick Serve Restaurant (QSR)
The one retail sector that has seen the greatest benefit from today’s hustle-and-bustle society is the Fast Food industry (or Quick Serve Restaurant (QSR)).
As mentioned in Part #1 of this blog series, all retailers rely on traffic counts and accessibility of their location. And, like convenience stores (C-Stores), QSRs benefit greatly from traffic counts, but they must also consider proximity to their customers.
Until recently, very few QSRs focused on the A.M. or “breakfast consumer.” For years, except for a handful of fast-food chains like McDonald’s, most QSRs only focused on the lunch and dinner or P.M. consumer. Therefore, being on the P.M. side of the road was a must.
However, with retail markets becoming heavily saturated with QSRs, coupled with the increased capital tied up in a restaurant, QSRs have been forced to start offering a breakfast menu. In some cases, the small margin of revenue that breakfast sales now provide has become a crucial component in a QSR’s profitability.
The one QSR statistic that has remained a constant, however, is that the P.M. consumer is most likely to visit a QSR within 1-2 miles (5-7 minutes) from their home.
Most experts contribute this trend to two major factors: familiarity of surroundings and being able to eat a hot meal at home. So, unlike C-Stores, proximity to rooftops must be considered when choosing a QSR site. While C-Stores can rely solely on traffic counts, QSRs cannot.
With the addition of breakfast menus, more and more QSRs that once wanted to be on the P.M. side of the road will now select the best site in a desired trade area. Therefore, working with a seasoned site selection advisor can be extremely helpful in determining and identifying the ideal location to best capitalize on the surrounding market.
Stay Tuned… Part #3 – Drug Stores
If you are interested in a site selection specialist, or for questions regarding your commercial real estate property, contact J. Collier Thornton at (225) 926-4481 or cthornton@stirlingprop.com.
HOTWORX Hits 100
Stirling Properties brokers 100th retail location milestone for fitness franchise as part of rapid expansion plan.
Stirling Properties announces that new fitness concept HOTWORX has secured its 100th retail location in Southlake, Texas. The fitness franchise, which opened its first store in 2017, now operates in 20 states across the country and anticipates another 75-100 national locations in the pipeline over the next year, as well as international growth.
Two years ago, Stirling Properties was selected to exclusively represent HOTWORX, a new-to-market fitness concept, in its aggressive expansion efforts across the U.S. Stirling Properties’ commercial advisors worked with the company to identify and secure retail locations in Alabama, Arkansas, California, Florida, Georgia, Indiana, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, Tennessee and Texas. Now, HOTWORX has its sight set on international expansion efforts. Last month, the company officially closed the deal with a Master Franchisee for Australia.
HOTWORX—founded in New Orleans, LA—is revolutionizing the fitness industry by providing the ultimate hot exercise experience and is the first to launch a 24/7 business franchise model using its proprietary patented technology. It is a virtually instructed exercise program created for users to experience the many benefits of infrared heat absorption while completing a 30-minute isometric workout or 15-minute high-intensity interval training (HIIT) session. As the infrared heat penetrates the body, the isometric postures further accelerate detoxification by physically removing toxins from organs through muscle contraction.
Joe Gardner, CCIM, and Thomas Bryan, Stirling Properties’ Advisors, serve as the exclusive national tenant rep brokers for HOTWORX. Utilizing the Retail Brokers Network (RBN) and the local knowledge of individual brokers across the country, the dynamic duo is working diligently to secure the ideal store locations for the fitness concept.
HOTWORX in Orlando, Florida
“HOTWORX provides a first-in-class fitness program in the niche infrared exercise market. The franchisor utilized a tremendous amount of knowledge and input to create a business model that minimizes risk and maximizes customer experience—you simply can’t order this type of service online. We are proud of the extraordinary success of our client and look forward to helping them bring more retail locations to market soon,” said Bryan.
“We are overwhelmed by the countless, positive testimonials we receive from our HOTWORX customers, and we are confident that increasing consumer access to the HOTWORX brand—by securing more locations across the country—will only create more stories to be celebrated. We’re excited to continue our successful partnership with Stirling Properties to grow our business,” said Stephen Smith, HOTWORX CEO.
“HOTWORX is growing faster than any other fitness concept in the country. One of the biggest attributes of this success is its desirability among landlords and property owners,” said Gardner. “Fitness is currently one of the most attractive space users in commercial real estate because of its ability to drive traffic to neighboring retailers and encourage repeat visits from customers.”
Fitness is driving growth in retail real estate. According to a report from ICSC (International Council of Shopping Centers), Mixed-Use Properties: A Convenient Option for Shoppers, from 2008 and 2018, the number of fitness centers in shopping centers (including traditional/boutique gyms, yoga, cross-fit and cycle studios) increased from 6,218 to 14,044.
Furthermore, incorporating a mix of tenant types, such as health and fitness centers alongside traditional retailers, draws additional, more frequent traffic—29% of consumers say the presence of non-retail tenants encourages more frequent shopping center trips—and creates excitement through one-of-a-kind experiences.
The health and fitness trend has taken the real estate business by storm, morphing into a more than $30 billion industry—with no signs of slowing down. New-to-market, niche concepts such as HOTWORX that are reinventing the way consumers exercise and even shop, have a bright future in the evolving retail landscape.
Retail Site Selection & Convenience Stores
Proximity & Accessibility of Retailers
Since the beginning of time, retailers have strategically positioned themselves in a manner where they could capitalize on the disposable dollars that their target market spends.
While technology advancements have enhanced the ability for consumers to buy certain products online and have them delivered right to their doorsteps, there are still several retail sectors that cannot be replaced by e-commerce.
This blog series will outline three of those retail sectors: 1) Convenience Stores (C-Stores), 2) Fast Food Restaurants (Quick Serve Restaurants or QSRs), and 3) Drug Stores, as well as the site selection criteria they require.
I started in the commercial real estate industry in 1996. At that time, “portable” phones were in a bag that had to be plugged into a cigarette lighter, the internet was in its infancy stage, and relationships required verbal communication only.
While so much has changed over the past 23 years, three primary demographic criteria have remained a constant for market-based retailers: traffic patterns/counts, population (existing and growth) and access.
All retailers benefit from customers passing their physical stores regularly and having a location that is easily accessed. However, extensive consumer studies have caused certain retailers to apply more weight to traffic patterns and population when evaluating a market. Let me explain.
Part #1: Convenience Stores (C-Stores)
C-Stores are the one retailer that relies most heavily on traffic counts, as opposed to population. Also, C-Stores typically position themselves to take advantage of P.M. traffic patterns.
I started doing commercial real estate site selection work for a regional C-Store in 2002. The Director of Real Estate had over 30+ years of experience at the time. In one of our first meetings, when asked what the most crucial criteria were when looking for a site (outside of immediate competition), he said without hesitation, “We need to be on P.M. traffic side of the road.”
When questioned why that criteria were so crucial, he responded, “If you think about it, most people are pressed for time in the mornings. So, they will typically stop and only put enough gas in their tank to get them to work. If they have a couple of minutes to come inside and buy something, it is usually a small ticket item like coffee or a pack of cigarettes.
On the other hand, P.M. customers are typically not pressed for time. In turn, they are more likely to stop and fill up their tank. Plus, a higher percentage will come inside and buy much larger ticket items, like a 12-pack of beer, a carton of cigarettes or food for dinner.
We have done extensive studies, and our P.M. customers generate 4-5 times larger ticket sales than our A.M. customers. You do the math. That is why we will always prefer our stores to be accessible to the P.M customer.”
Over the span of several years, I sold more than 15 locations to the same C-Store. At one point, the client gave me a trade area in which to find a site. To my surprise, the trade area he provided had very minimal rooftops, at best. Besides, it wasn’t in a high-growth area.
Despite being provided the sales numbers of an existing competitor in the market, the trade area was a mystery to me. Furthermore, the trade area to choose from was on the A.M. side of the road, yet the competitor’s C-Store had the 2nd highest sales out of 65 corporate locations.
I spent the better part of the next week sitting across the street from the competitor’s store and driving the trade area, trying to determine who their customer base was. I sat and watched the A.M., mid-day and P.M. traffic patterns. The store was packed the entire day.
In addition to a railroad track eliminating the P.M. side of the road from being developed, the road was a major thoroughfare to one of two bridges that crossed the Mississippi River. As a result, customers that lived up to 10+ miles away were forced to pass the location on a regular basis.
While the immediate area had limited rooftops, the competitor’s store had record sales based on traffic count alone.
Throughout the site selection process, sometimes the criteria evolve based on a specific market area. That’s why it’s important to consult a site selection specialist who can help you analyze the area and find the ideal location for your business.
Stay Tuned for Part #2 – Fast Food Restaurants or QSRs.
For questions regarding your commercial real estate property, contact J. Collier Thornton at (225) 926-4481 or cthornton@stirlingprop.com.
Stirling Properties Names Samantha Marshall As Relationship Manager – Finance and Development
Stirling Properties is pleased to announce that Samantha Marshall has been promoted to Relationship Manager – Finance and Development.
In this new role within the organization, Samantha will work to enhance the company’s investor relations, as well as play a more prominent role in securing debt and equity capital for its projects.
Samantha has been with Stirling Properties for over six years, and previously held the role of Paralegal / Document Manager. While she will be responsible for many of the same functions, she will also be handling new and expanded duties.
As Relationship Manager – Finance and Development, Samantha will continue to coordinate loan closings and remain point person with lenders, guarantors and investors. In addition, she will have more involvement with Stirling Properties’ lenders on the front end of securing loans for acquisition, development and refinancing. She will also be assigned various special projects within the Development Department, working directly with some of the company’s larger, long-term clients, as well as assisting with investor relations and equity raising as Stirling Properties continues to grow.
Samantha Marshall will work from Stirling Properties’ Covington, Louisiana, office. She can be reached at smarshall@stirlingprop.com or (985) 246-3726.
Stirling Properties’ 3rd Quarter Portfolio Report Shows Positive Outlook
As the commercial real estate industry endures unrelenting disruption—specifically in the retail and office market segments—we have seen glimpses of a silver lining.
Despite all the headwinds and negativity swirling, Stirling Properties’ outlook is optimistic moving into the 3rd quarter of 2019 compared to this time a year ago. A recent comparison of our overall commercial portfolio revealed positive key performance indicators in total rental income, rental and occupancy rates.
Mind you, these numbers may not reflect significant increases, but they do illustrate an upward trend. In fact, almost every key metric indicated a positive gain. A further breakdown shows both our office and retail properties are performing well with occupancy rates holding steady and rental rates up slightly, contrary to the ‘apocalyptic environment’ predicted in years past.
For Stirling Properties, our portfolio achievements are not the result of a magic wand or some sort of geographical shield. We attribute our continued success to proper management of our commercial properties.
Asset and Property Management is vital for the health of an asset and can significantly affect its worth. Yes, location is important, but a property can also increase in value just from being well maintained and, of course, the opposite is true as well. Management affects tenant and customer relationships, vendor relations, public perceptions, all the things that determine a properties’ success or failure.
With our properties, we focus on keeping rents at market level and our rental stream within reasonable expectations. We don’t overleverage. We concentrate on tenancy—the right tenancy—and we use our market knowledge to tailor each asset plan. Effective managers see headwinds coming and react accordingly to proactively overcome obstacles.
Knowledge and diversity of various property types and needs, as well as industry trends, are also critical. In today’s retail landscape, we’re seeing smaller footprints, the emergence of different tenant types and shifts in consumer demands. There is steady growth in the healthcare and industrial industries, and in some cases, they are merging with retail. In the office sector, users are looking for less square footage, more collaboration with open floor plans, and innovative trophy projects.
These trends in the commercial industry increase the need for more curated properties. Stirling Properties’ in-house operating, leasing and development resources allow us to be more strategic and forward-thinking with our managed properties. If a property is in a great location but is struggling with tenancy, perhaps a redevelopment would be effective. Does the building lack visual appeal, have a maintenance problem or even a marketing problem? Whatever the case, Stirling Properties’ comprehensive spectrum of services can tackle it.
Look at our current redevelopment of Cornerview Plaza in Gonzales, Louisiana. This retail center is in a great location but was struggling to backfill a nearly 90,000-square-foot vacancy left by its former anchor, Kmart. Stirling Properties’ team consisting of Asset Management, Development, Leasing and Financing worked with the Property Owner to redevelop the space into a multi-tenant, upscale Retail Center. We secured favorable financing for the ownership. This gave us the ability to move forward with an aggressive redevelopment plan, bringing on Marshalls, ULTA Beauty, Ross Dress for Less, Five Below and Aspen Dental to fill one-time anchor space, joining the existing grocery-anchor, Rouses Market, and AT&T.
Another notable example is DANA Incorporated. Our Leasing Team was enlisted to help the corporation locate an industrial space in the market for the relocation and expansion of their service and assembly center. After realizing their specific space needs, our Development Team was brought in to present build-to-suit options. We were able to help them locate land and manage the development of their new facility designed with ample flex space to meet their needs and accommodate future expansion.
Our all-inclusive approach showcases our diverse range of services we offer to our clients, allowing us to maximize the full potential of every property. And that commitment and dedication to our portfolio are reflected through consistent positive gains in leases, occupancy rates, rental rates and income.
Stirling Properties’ experienced management team serves more than 20 million square feet of property across the Gulf South, including some of the largest commercial properties in the Region. We fully understand geographic markets, diverse property types, a property’s unique requirements and marketability, specific financial situations, ownership goals and tenants’ needs. We consistently focus on cost-efficient operations and explore innovative concepts to improve the value of each asset. We pride ourselves on delivering results through diligence, professionalism, accountability, and good old-fashioned work ethic!
Now, all of this is not to say that more disruption and headwinds aren’t looming around the corner, but I am confident that we are prepared to handle it.
If you have any questions about your property or would like to discuss Asset Management options, please feel free to reach out.
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