Case Study: Chester Springs Shopping Center, Morris County, NJ

Active Management of Retail Center Provides Black Creek Group with Successful Returns

Creating value through active management of real estate requires a hands-on approach by experienced asset management professionals.

This concept is particularly apparent in retail real estate, as owners of multi-tenant centers strive for the optimal tenant mix that provides long-term performance through growing consumer demand and consistent rent growth.

In 2015, Black Creek acquired Chester Springs Shopping Center, a 222,000 square foot, high-quality, neighborhood retail center in Morris County, New Jersey.

222,930 SF Retail Center
41,000 SF Of New Leases

The multi-tenant property had strong anchor tenants and good fundamentals, but historically was occupied by lower-quality in-line retail tenants and appeared to be under managed based on tenant mix, rental rates and regular maintenance. Black Creek’s retail team identified an opportunity to pursue higher-quality tenants that would drive the center’s leasing demand as well as grow rental rates.

The team began to proactively upgrade tenancy, negotiating an early lease termination with an underperforming anchor tenant and replacing them with a leading discount home furnishing store, a more desirable anchor for the community and other retailers, alike. All of which increased rents by 23 percent, which is substantially higher than what could have been achieved leaving the existing tenancy in place.


Positive Returns

Since its acquisition, the company has executed more than 41,000 square feet of new leases, which includes significant tenant upgrades with national retailers who transformed the center into a thriving shopping destination – adding value for both the local community as well as Black Creek’s investors.

Current Tenants

Chester Springs Shopping Center now boasts top-tier anchor tenants such as:

  • ShopRite
  • HomeGoods
  • Ulta
  • Marshalls
  • CVS
  • Chipotle
  • Five Guys
  • European Wax
  • And more
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