Situation
Suntide was appointed receiver for Sunfish Commons, a 22,000 SF shopping center in Ramsey, Minnesota. When Suntide acquired management and leasing of the property, it was 80% vacant. When acquired, the property had one restaurant tenant and a liquor store that was about to close.
Challenges
Poor visibility from the highway. Sunfish Commons was struggling due to a median which had been recently installed on Sunfish Boulevard, that disrupted the flow and access of traffic into the center. Suntide met with governmental officials and neighbors of the building in effort to remove that median as it was reducing traffic flow and business to the area. The gas station, which was located on the corner of Highway 10 and Sunfish Boulevard, suffered so badly from this ingress-egress change that it was forced to close its doors. The City of Ramsey eventually purchased the gas station site and razed the building. Subsequently, this ended up being beneficial for Sunfish Commons, as traffic on Highway 10 then had a clear view of Sunfish Commons and its businesses.
Insufficient insulation. One of the earliest problems that Suntide discovered was with the plumbing on the north wall of the building. The north wall was not properly insulated, which had occasionally resulted in burst water pipes within the wall. Once the spaces became vacant and the temperature lowered, the pipes froze and broke causing severe water damage. Suntide’s in-house maintenance and construction teams rectified the underlying problem by adding insulation throughout the north wall, as well as insulating all water pipes. This allowed for us to reduce the heat in vacant suites, thus reducing utility usage and unrecoverable costs to the owner.
Several vacant spaces. Creative leasing became an important part of the receivership process. The two anchor suites were second-generation restaurant uses. Suntide’s brokerage team connected with a firm that specializes in restaurant uses, which allowed for us to secure Will McCoy’s as a long-term tenant on the west end of the shopping center.
Suntide’s next large success for Sunfish Commons was filling the anchor space at the opposite end of the shopping center. Aurelio’s Pizza was a well-known restaurant, originally from Roseville, which moved to Ramsey to take advantage of its dense residential neighborhood. Aurelio’s success with the space encouraged them to lease the adjacent in-line suite and build an event room, increasing sales and the flow of traffic to the shopping center.
Britos Tacos started their business in a food truck they had parked in a lot across Highway 10. Suntide contacted the operator with an opportunity for a sit-down location at Sunfish Commons. As a result, Britos Tacos opened their first brick-and-mortar location at the shopping center. Britos was so successful inside their new space that they opened 3 more restaurant locations around the Twin Cities.
Flexible Rates & Terms. During Suntide’s management tenure at Sunfish Commons, Suntide discovered that MnDOT had large plans to renovate and reroute Highway 10, which is the shopping center’s primary access for visitors and tenants of the building. In efforts to retain and entice new tenants, Suntide worked with the owner of the building to modify rates and terms of leases to accommodate the forthcoming construction. Long-term leases were negotiated to allow businesses the ability to ride out the disruption caused by the Highway 10 renovation project. This resulted in securing 4 more tenants: a tattoo parlor, smoke shop, staffing agency, and Lisa’s Catering. The new tenants provided the necessary cash flow for ownership to invest back into improvements benefiting the shopping center.
Dark and inefficient parking lot. Once the restaurant businesses opened, the parking lot quickly became full which resulted in the need for additional parking spaces. Suntide’s property management team obtained the necessary permits to remove the parking lot islands, which allowed for 12 additional parking spaces. Suntide also improved exterior lighting by installing additional light poles and retrofitting the existing lamps to LED. They also added additional fixtures over the tenants’ doorways to make the parking lot brighter and feel safer.
Crumbling Sidewalks. Property management repaired several of the sidewalks in front of the building that had become hazardous. The new sidewalks improved the curb appeal and brand perception for the tenants. Plans to sealcoat the parking lot and paint the exterior are set to be completed after the construction on Highway 10 is completed.
Result
Ultimately Suntide was able to bring Sunfish Commons from 20% occupancy to 100% in just a matter of time. Today, the retail center contains a full row of in-line tenants, as well as two popular restaurants which both serve as anchors. The property was sold to an investor in 2024 and Suntide proudly retained management. The completion of the roundabout which will connect Sunfish Blvd to Highway 10 is expected to take place in 2025.