Stirling Properties Announces New Tenants at Hammond Square
Redevelopment of former Sears and Rite Aid stores into multi-tenant retail space.
Stirling Properties commercial real estate company is thrilled to announce that Michaels, HomeGoods, Five Below and PetSmart will join the tenant lineup at Hammond Square shopping center in Hammond, Louisiana.
Rhonda Sharkawy, Senior Retail Leasing & Development Advisor with Stirling Properties, handled the lease transactions on behalf of the landlord.
Michaels, HomeGoods and Five Below will occupy a newly constructed multi-tenant building on the parcel formerly occupied by Sears and Rite Aid. Michaels will lease 21,000 square feet, HomeGoods will lease 22,000 square feet and Five Below will lease 8,300 square feet. PetSmart will occupy approximately 15,000-square-foot store adjacent to Hibbett Sports. There will be a newly created outparcel at the corner of Hammond Square Drive and Palace Drive, near the entrance of the retail center. This outparcel is available for a future retail or restaurant up to 6,000 square feet.
Demolition of the former Sears and Rite Aid buildings was completed earlier this year to make way for the $15 million redevelopment project. Construction of the new space has commenced, and developers are recycling the crushed concrete from the building demolition to use for paving base material. Buildout is expected to be completed in the first quarter of 2020 with the new retail tenants anticipated to open in the second quarter of 2020.
Also new to Hammond Square, Old Navy celebrated its grand opening this past spring. The new-to-market fashion retailer is located on Palace Drive between Zales and Shoe Dept. Encore. Poké City recently announced that it would open its 2nd Louisiana location at Hammond Square. The restaurant, serving Hawaiian-inspired food bowls, will occupy the former Which Wich location on Palace Drive between Menchie’s and GNC. It is expected to open this August.
“Stirling Properties is excited to welcome these first-class retailers to Hammond Square. They are all new to the Hammond market, and we are confident they will be extremely well-received by the surrounding Tangipahoa community. They complement our existing tenant mix perfectly—even further positioning Hammond Square as a leading shopping destination in the region. In addition, our leasing team is still working to secure additional retailers and restaurant options that we hope to be able to announce very soon,” said Grady Brame, Executive Vice President with Stirling Properties.
Hammond Square is Tangipahoa Parish’s premier shopping destination, located on approximately 100 acres at the northwest corner of Interstate 12 and US Highway 51 Business (SW Railroad Avenue) in Hammond, Louisiana. It is the 2nd largest open-air center in Louisiana encompassing over 902,000-square-feet of more than 40 national and local retailers, shops and restaurants, including Dillard’s, Target, The Home Depot, JCPenney, Academy Sports+Outdoors and AMC Theatres. Stirling Properties redeveloped Hammond Square and currently manages and leases the center.
For more information on Hammond Square, visit www.hammondsquare.com or facebook.com/hammondsquare. For leasing and sales information, contact Rhonda Sharkawy at (504) 620-8145 or rsharkawy@stirlingprop.com.
President’s Message: Don’t just paint it on the wall
Company culture has become a catchphrase, often overused and undervalued. Its meaning and relevance in today’s workplace are fading.
However, to me, company culture is not a buzzword. It’s not a byline or a slogan painted on the wall, or merely words printed on a t-shirt. It’s an attitude that is lived and nurtured every day.
A company’s culture is a shared set of values, beliefs, practices and purposes of the organization. It’s who you are, what you stand for, what you won’t stand for, and why people want to be associated with you. You can’t see or touch a culture, but you can certainly feel it. It affects every aspect of a business, from its employees to customers to public image, and it is evident in every action.
Stirling Properties’ ethos has been ingrained here throughout the decades. Our culture is the personality of our company and determines how we interact and work together as a team to accomplish our shared goals. These ideals motivate and shape the way we conduct ourselves and our business every day.
We place great emphasis on our team and our bench strength of up-and-coming new talent across all departments and geographical markets, as well as cross-training and expanding individual skillsets. Stirling Properties has hired over 50 new people in the past two years alone, and more than half of our team has joined in the last five years!
Every business evolves. People change, demographics change, beliefs and practices change. That’s precisely why it’s essential to have an entrenched company culture that everyone shares and buys into. Now, that’s not to say that company culture can’t adapt—it can, and it should, but it should never be abandoned.
The Millennial generation is driving significant change in workplace culture. They pursue jobs that offer purpose, meaning and flexibility that aligns with their personal beliefs and lifestyles. Companies that show commitment to social responsibility and professional development are more appealing to this demographic. As the largest cohort in the workforce today, this is especially important to consider.
At Stirling Properties, we’ve been successful in attracting this new generation of talent because I believe we live and breathe our company culture. Our culture was said to be our #1 asset by an outside consultant recently.
One of the hallmarks of our company culture is giving back. With the help of our Stewardship Committee, Stirling Properties provides charitable funding and volunteer support for numerous nonprofit organizations and community groups across our entire footprint that reflect our motto of #BeTheChange: Helping others is a work of heart.
Community spirit and generosity are evident not only on a corporate level but through individual involvement as well. Stirling Properties encourages its people to get involved and volunteer for philanthropic, civic, and cultural endeavors that impact our communities. Many members of our team generously give their time and resources to nonprofit organizations that hold a special place in their hearts.
What amazes me most is not the numbers or dollars of what is given, but rather the pride, enthusiasm, energy and heart that they commit to these causes. Also, I am humbled by their appreciation for the support that our company provides them to do so.
New Orleans Saints great Drew Brees recently said during an award acceptance speech, “Gratitude, humility and respect are the three greatest qualities you can have as a human being.” He went on to say that he works every day to instill those qualities in his children—his team off the field.
I think those same qualities can also be applied to a company and its team as a benchmark for culture. At Stirling Properties, I’m grateful for what we have and what we are able to give back, humbled by the outpouring of generosity and kindness by our team, and respectful of the cultural environment that is deep-rooted here, even amid more than forty-three years of demographic changes.
Company culture has always been an integral part of our business, but it’s more important now than ever. We need to be cognizant of and adapt to the needs of the next generation of people who are shaping our future workforce, while still staying true to the underlying principles and values that define our company.
Company culture is not a buzzword but a compass that will navigate a business towards success or failure. So, paint it on the wall, or print it on a t-shirt, but whatever you do, make it front and center in your company’s day-to-day activities.
How Do I Calculate the Value of My Commercial Real Estate Property?
Whether you are looking to buy or sell a commercial real estate property, it’s important to be very clear on its value. Value is defined as the most feasible price the property could reasonably earn in an active, open, and competitive market when the transaction is approached fairly and knowledgeably by both buyer and seller. There are three different approaches that are typically used to appraise a commercial property and choosing the right method for your particular investment is essential to ensuring that it is priced correctly. Let’s look at these three approaches separately.
The Income Approach
Also referred to as the Income Capitalization Approach, this tactic is the one most commonly used in commercial real estate transactions. The value is established here by estimating the property’s income using the capitalization rate (commonly referred to as merely the cap rate). The cap rate is the net operating income of the property divided by its current market value (or sales price).
An example might look something like this: Take a property with a gross potential income of $500,000, subtract a 10% vacancy factor of $50,000 and you will be left with an effective gross income of $450,000. Deducting from this the operating expenses of the property (we’ll say $150,000) will help you to arrive at a Net Operating Income (or NOI) of $300,000. Divide this by the cap rate (8%), and you will come to your fair market value price of $3,750,000.
The Replacement Cost Approach
Frequently shortened to The Cost Approach, this is a much more complicated route of valuing commercial real estate properties. It first considers the value of the land on which a building exists (value without the inclusion of the building). It then factors in what costs would be incurred to build an exact reproduction of the current existing building and adds that number onto the land value. Lastly, the depreciated value is considered, and the actual property value number adjusted accordingly.
The Market Value Approach
Sometimes called the Sales Comparison Approach or the Comparable Approach, the Market Value Approach is quite arguably the simplest method to determine the value of a commercial real estate property. This type of method compares the property in question to other properties of similar use and size, which have been sold or placed on the market in the surrounding area. A range of value is established from the findings of the market research, and from there, the number is adjusted based on the physical characteristics of the property being valued.
Factors that will likely be considered are discrepancies in the dates of the sale, age and condition of the property, square footage of the actual building and size of surrounding land, location, land to building ratio, local tax policies, and other physical characteristics based on the importance they hold in the current market and the effect they have on the particular property being valued. Basically, this number is determined by what a purchaser is likely willing to pay in an open, fair, and competitive market at any given time. A buyer may put a less or greater personal value on a property based on how it serves their needs, but this is an easy way to determine a baseline to begin negotiations between two parties.
Which Approach is Right for Me?
Now that you have a much clearer picture of each of these fundamental valuation tools, you may be wondering which method is right for your commercial real estate property. The short answer is that each of these modalities is valuable depending on your situation. For example, it’s going to be harder to determine cap rates and comparable selling prices for a property that is located further away from similar properties; in which case, The Replacement Cost Approach may make the most sense. If you have access to the data needed to determine the cap rate, The Income Approach will be sufficient. If you have a property where vacancy rates fluctuate (such as a multifamily building), this may not work out so well; in which case, you might consider The Market Value Approach of using comparables.
Looking for Commercial Real Estate in the Gulf South region?
If you’re ready to sell your commercial real estate property or looking to invest, it’s imperative that you are clear on a property’s actual worth. Working with a professional can help you avoid mistakes and pitfalls. At Stirling Properties, our experienced team of commercial advisors is here to make your venture a success. With offices throughout Louisiana, Mississippi, Alabama and the Florida Panhandle, we have specialists in all aspects of commercial real estate including retail, office, industrial, healthcare and multifamily sectors. You can’t go wrong having us on your side. Please take a look at our extensive database of commercial properties and contact one of our expert team members today!
Stirling Properties Hires Veteran Real Estate Broker Austin Earhart as Senior Advisor
Stirling Properties announces that veteran real estate broker Austin Earhart has joined its commercial team as Senior Advisor. He will work from the company’s Baton Rouge office located at 6160 Perkins Road, Suite 200.
With over 20 years of experience in commercial real estate, Earhart has become one of the region’s foremost retail experts specializing in tenant and landlord representation, lease negotiation, site selection, and dispositions for local and national retailers. He has been a multi-million-dollar producer in Louisiana, and regularly closes deals in all aspects of commercial properties including industrial, office, land, and investment sales.
Earhart’s landlord representation includes institutional and local owners with retail portfolios ranging from 5,000 square feet up to major power centers. He has worked with many of the nation’s leading retailers including Walmart, Lowe’s, Whitney National Bank, AmSouth Bank, MidSouth Bank, FedEx Kinko’s, Starbucks, Xerox, Best Buy, Eatel, Rally’s/Checkers, Walgreens, Papa John’s, Nextel, and Hobby Lobby.
Before joining Stirling Properties, Earhart was an agent with Beau Box Commercial Real Estate company, where he served the Baton Rouge, Louisiana, community for 12 years.
Earhart attended the University of Mississippi and is a Certified Commercial Investment Member (CCIM) candidate. He is affiliated with ICSC (International Council of Shopping Centers) and the National Association of Realtors (NAR). He is also an active member of the Greater Baton Rouge Association of Realtors (GBRAR), where he serves on the Trends Retail Board Committee and is a past board member of the Commercial Investment Division (CID). He is a regularly published writer as a retail expert in national trade magazines.
“I’m excited to join Stirling Properties. Their excellent reputation, national reach, and comprehensive industry knowledge are attractive—and evident in the more than $1.64 billion worth of third-party transactions they have closed in the last five years alone,” said Earhart. “I look forward to better serving the real estate needs of my clients—not only in brokerage but by utilizing the full gamut of commercial services available through Stirling Properties.”
“Stirling Properties is thrilled to welcome Austin Earhart to our team of commercial advisors. His extensive experience and market insight will help us continue to grow our services in the Greater Baton Rouge region and across the Gulf South, and further position us as a leader in the market,” said Chris Abadie, Vice President and Manager of Commercial Brokerage with Stirling Properties.
Austin Earhart can be reached at aearhart@stirlingprop.com or (225) 926-4481.
Springhill Suites by Marriott Breaking Ground at Fremaux Park in Slidell, Louisiana
Anticipated opening scheduled for late 2020
Q Hotels and Stirling Properties are pleased to announce that Springhill Suites by Marriott is breaking ground at Fremaux Park in Slidell, Louisiana. Fremaux Park is the mixed-use property surrounding the Fremaux Town Center retail development.
Q Hotels, a LaPlace, Louisiana-based hospitality development and management company, previously purchased the 1.87-acre parcel of land, and the company is now ready to begin construction of a four-story, 88-room hotel under the Marriott flag. The hotel will encompass 57,000 square feet of space located on the south side of the W-14 canal at the corner of Ruth Garrett Way and Bill Garrett Road (I-10 Service Rd.). Groundbreaking and site work began this week. Springhill Suites by Marriott is expected to open in the fourth quarter of 2020.
“We are truly excited to continue expanding our portfolio to be the newest member of the Slidell community! The Springhill Suites by Marriott will be a great addition to the Fremaux development and complement its dynamic tenant mix by offering an upscale, all-suite option for travelers and visitors of the Northshore area,” said Rachael Brockhoeft Burns, Regional Director of Operations, Q Hotel Management.
Q Hotels’ development arm, Velocity Builders, will serve as the contractor and developer of Springhill Suites by Marriott; its management arm, Q Hotel Management, will handle hotel operations. Q Hotels currently owns and manages 12 hotels with brands ranging from Hilton, Marriott, IHG and Best Western across Louisiana and Texas, as well as multifamily and retail properties.
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.
New Fashion Retailer, Physical Therapy and Multifamily Development Coming To Fremaux Town Center & Fremaux Park
Stirling Properties is pleased to announce new tenants and development updates at Fremaux Town Center and the surrounding Fremaux Park mixed-use project in Slidell, Louisiana.
Old Navy is coming to Fremaux Town Center. The fashion retailer will occupy 12,500 square feet of store space on Levis Lane between Dillard’s and Capital One Bank. Construction of the building will commence this week, with plans to open in the spring of 2020. Old Navy provides the latest fashions at great prices for the whole family, including men’s, women’s, women’s plus, kids’, baby and maternity wear.
This marks the 3rd Old Navy location for the Northshore region, with other retail stores operating at Stirling Properties’ Premier Center development in Mandeville and Hammond Square development in Hammond.
PT Solutions physical therapy provider is also leasing 2,617 square feet of retail space in Fremaux Town Center located on Town Center Parkway between Aveda and Bath & Body Works. Buildout of the space began recently, with plans to open in mid-July.
Ryan Pécot, Senior Retail Leasing & Development Executive with Stirling Properties, handled the lease transactions for both retailers.
(Waypoint multifamily apartment units)
Stirling Properties recently closed on the sale of a 20-acre site to multifamily developer, Waypoint, for a luxury apartment community in Fremaux Park. The 276-unit multifamily development will consist of eight detached buildings that will be located along Town Center Parkway on the south side of the W-14 canal. Construction is scheduled to begin in the next couple of weeks.
The developer for the Marriott Springhill Suites has started construction this month with site clearing and site work now underway. The hotel is expected to open in 2020.
Fremaux Town Center, anchored by Dillard’s, Dick’s Sporting Goods, Kohl’s, and Best Buy, 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. The retail center includes more than 640,000 square feet of shopping and restaurant options and is jointly owned and operated by CBL Properties and Stirling Properties.
Tenants include Albasha Greek & Lebanese Restaurant, Allure Spa, Aveda, Bath & Body Works, Bellagio Nail Spa, Best Buy, BJ’s Restaurant & Brewhouse, Books-A-Million, Buckle, Capital One, Carter’s, Cheddar’s, Chico’s, Chipotle Mexican Grill, Claire’s, Dentists of Slidell, Dick’s Sporting Goods, Dillard’s, dressbarn, Exit 16 Boutique, European Wax Center, Five Below, Five Guys Burgers & Fries, Forever 21 Red, Francesca’s, GNC, Goodyear, Great American Cookie Company, Journeys, Kay Jewelers, Kirkland’s, Kohl’s, LA Fitness, Lane Bryant, LensCrafters, LOFT, Longhorn Steakhouse, The Lost Cajun, Luxe 83, Marble Slab, Massage Envy, Mattress Direct, Men’s Wearhouse, Michaels, Off Broadway Shoe Warehouse, Old Navy (coming soon), Panera Bread, Payless Shoes, PetSmart, Pier 1 Imports, Pizza Platoon, PT Solutions (coming soon), Rack Room Shoes, Red Robin, Rock N Roll Sushi, rue21, Saltgrass Steak House, Smoothie King, Sports Clips, Starbucks, Tesla (charging stations), T.J.Maxx, Torrid, ULTA Beauty, Verizon Wireless, Versona, Victoria’s Secret, Walk-On’s Bistreaux & Bar (coming soon), Which Wich, and Zales.
The adjoining Fremaux Park includes Retreat at Fremaux Town Center luxury residential apartment units, Springhill Suites by Marriott (coming soon), Waypoint apartment community (coming soon), Saltgrass Steak House, and Dana Inc. Service & Assembly Center (coming soon). Additional phases are forthcoming with added residential, retail, industrial and office park. Fremaux Park is a Stirling Properties mixed-use development.
For leasing information, contact Ryan Pécot at 337.572.0246 / rpecot@stirlingprop.com or Michael Oswald at 423.490.8272 / mike.oswald@cblproperties.com.
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