Old Wal-Mart buyer steps forward
By Melissa Topey, mtopey@advertiser-tribune.com
POSTED: January 11, 2008
Article Photos
U.S. Properties Group is in the process of acquiring the former Wal-Mart property from the Chicago-based Inland Real Estate Group. Donn Davids, vice president of leasing and redevelopment, Midwest region, said he expects the property transfer to be complete in the next 60 days, but it could be earlier then that.
“Tiffin’s a good place to be,” Davids said.
Tiffin’s law director, Brent Howard, has been working to keep the sale on track.
“They have been very cooperative and very willing to donate to the city the property for the construction of the road,” Howard said.
Plans are moving forward on a proposed road, named South Shaffer Park Drive, to run between the old Ames site and the former Wal-Mart property that is to connect US 224 and West Market Street.
USPG has a process of redeveloping abandoned buildings and markets them to an existing network of established retailers such as Kohl’s; Ashley Furniture; Bed, Bath and Beyond; Target; and Best Buy. The company calls it upcycling.
Commercial buildings that are not being used start to deteriorate and can be difficult to market.
“We’re trying to bring new life to old property,” Davids said.
Most developers salvage what they can from a building to reuse and recycle, such as copper piping. Davids said they work hard at being environmentally conscious, but not everything is financially recyclable. Sometimes there are no facilities in the area, making it cost prohibitive.
But sometimes it is. In Oshkosh, Wis., the company tried to reclaim a building, but had to tear it down. USPG managed to recycle 94.4 percent of the material, going so far as to grind up the demolished cement blocks and add it to the concrete being used to construct a base for the new building, Davids said. Normally 50-70 percent of construction debris from a torn-down building will end up in a landfill.
If the sale goes through, it could take USPG time to bring in a tenant. The entire process on average takes more than two years. Davids said, at times, they have marketed a building much quicker.
The first step is to analyze the building, and that takes time. The company determines what needs to be done to get the building ready from the roof to the walls to the floor.
Once that is complete, Davids said in 90 days he could have the building remodeled and ready for a tenant to start to move in.
At that point USPG will start marketing the site to the client base, mostly retail, they already have established.
Davids said at this time he is working on several active prospects that could become tenants if the purchase goes through, but with no commitments he would not name potential tenants.
USPG was formed five years ago and is based in Gahanna, a suburb of Columbus. They own property in 10 states.
Inland Real Estate Group spokesman Joel Cunningham reported Thursday the closing price for the Wal-Mart property was $1,707,500 in its sale to USPG Holdings. The anticipated closing date is expected to be within the next 30 days.
Cunningham said the property had been leased by Wal-Mart, and the lease was up at the end of January, when Wal-Mart would cease paying the rent.
