Anchor Tenant

A shopping centre developer in Phoenix had 25 million to deploy. She could build a new property, spend five years filling it, hope for 60% occupancy, or follow the regional grosses playbook. Sprout's farmers market was planning 12 new locations in Arizona. They wanted street visibility, high traffic intersections, and places to anchor a centre without competing against themselves. They had capital, but not unlimited locations. The developer approached Sprout's real estate team directly. She offered a build-to-suit lease. She would construct a custom 30,000 square foot space to their specifications for $16 per square foot annually. In return, they committed to 15 years. Once Sprout signed, everything changed. The development loan became viable.