CASE STUDY The Shops at Franklin Place began for Devonshire as a 242,000 square foot Target-anchored community center purchased for $8.55M. At acquisition, the entrance to the center was dominated by a dilapidated and long vacant movie theater. Along with this eyesore, several vacancies large and small caused additional negative economic pressure on the center. As contracted, the property was cash flow negative, but by the closing date Devon- shire had a commitment in hand from Gabri- el Brothers, a regional clothing discounter new to Toledo, to fill a 52,000 square foot vacancy adjacent to Target. This lease was worth over $400k annually and pushed cash flow to a positive $290k. The movie theater was razed and a 75,000 square foot addition was added along the west side of the property. The new building is occupied by Marshalls, HomeGoods, PetSmart, OshKosh B’gosh, Carter’s and Five Below. As of April, 2015, the entire property was valued at almost $32M. With all develop- ment including the outlot complete and all rents stabilized, the value of the property is expected to be approximately $35.5M with over $1.3M in cash flow after debt service (CFADS). ValueDebtTotal CostCash RequiredDebt ServiceNet Operating Income (NOI)CFADSAT CONTRACT$8,550,000$5,000,000$8,550,000$3,550,000$700,000$604,047-$95,953AT CLOSE$12,500,000$5,000,000$8,550,000$3,550,000$700,000$991,047$291,047CURRENT$31,735,000$19,280,800$23,545,400$4,264,600$827,800$1,789,500$961,600PROJECTED$35,500,000$22,000,000$26,045,400$4,045,400$1,098,000$2,425,200$1,327,200 In the span of 18 months, and with less than $5M in investor capital, the Devonshire team has taken an $8.55M money losing eyesore and turned it into a $31M destina- tion shopping center churning out annual CFADS of almost $1,000,000 and creating over $8M in shareholder equity.