At RockStep Capital, we go beyond just property acquisition. We leverage our more than 270 years of combined experience to focus on community growth and modern customer experiences. Achieving this objective involves a strategic mix of redevelopment, repositioning, merchandising, expense control and innovative marketing.
In 2021, we acquired Uptown Rapid (formerly known as Rushmore Mall) in Rapid City, South Dakota. Keep reading for an analysis of our investment in this property thus far.
RockStep worked with a local lender and 7 local investors to purchase the property at less than a 20% replacement cost. Since then, we’ve made improvements to the roof, parking lot, lighting, new signage and food court interior.
Development is never done, which is why we’re continuing to expand our leasing options and have opened up 8 new tenants since the acquisition. This includes re-tenanting the vacant, underutilized department store space with 2 separate tenants. Additionally, we sold one restaurant pad (with two more in earlier stages of the same process), all at very attractive cap rates. To maximize efficiencies, we’re selling the adjacent Hobby Lobby and vacant land at the rear of the property.
See Uptown Rapid’s up-to-date tenant list here.
If our target plan is achieved, RockStep will exceed an IRR well in excess of the 18% target.
RockStep capitalized on the location and target market of this property to revitalize the surrounding area and enrich the customer experience for locals and visitors alike. With new tenants and renovated spaces, Uptown Rapid keeps bringing customers back. We look forward to identifying new opportunities for this property and others, bringing continued success to RockStep properties for years to come.
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