SouthPark Mall - Outparcel Monetization & Control Recapture

Reclaiming Control And Monetizing Underutilized Outparcel at Southpark Mall

Executive Summary

Spinoso Real Estate Group specializes in unlocking value where others see constraints, applying a disciplined, solutions-oriented approach to complex real estate challenges. By identifying structural barriers that limit asset performance and proactively resolving them, Spinoso REG repositions properties to capture full market potential. The SouthPark Mall outparcel transformation highlights this capability, converting a restricted, non-performing asset into a high-value, income-generating component of our portfolio through strategic negotiation, repositioning, and execution.

Execution you can trust.

Results you can Measure.

Strategic Approach

Spinoso Real Estate Group identified a strategically located outparcel at SouthPark Mall that was materially underutilized due to legacy ground-lease restrictions. Prior to acquisition, the box was subleased by OfficeMax under a ground lease that severely limited permissible use to office-supply retail, materially constraining re-tenanting flexibility and long-term value.

Following acquisition, OfficeMax closed the location in 2022, leaving the 27,180-square-foot building vacant and functionally unleaseable under the existing sublease structure. The vacancy represented both a near-term drag on income and a longer-term impediment to value creation unless control of the asset could be reestablished.

The primary challenge was structural rather than market-driven.

The ground lease restricted use, rent potential, and deal flexibility—effectively preventing a market reset despite strong location fundamentals. Any value creation strategy required terminating or restructuring the existing sublease, a process that typically involves cost, timing risk, and legal complexity.

At the same time, the asset needed to be repositioned in a manner that maximized rent, diversified tenancy, and aligned with institutional underwriting standards for durability and credit quality.

Monetized

0 SF

Increase Over Prior Ground Rent

0 %

Spinoso REG successfully negotiated with the ground lessee to terminate the existing sublease, reclaiming full control of the 27,180 SF outparcel at zero cost. With control restored, the team executed a competitive leasing strategy, generating significant interest from national and regional operators, including high-credit users.

Ultimately, Spinoso REG split the former single-tenant box into two leases with first-to-market tenants, completing both transactions in 2024 and materially enhancing income and asset value:

Boot Barn

12,064 SF
Publicly traded western wear retailer with 459 stores with major growth plans
First Cleveland, OH location

Activate Games

15,116 SF
International interactive entertainment concept with 51 locations
First Cleveland, OH location

Key Impact

This transaction exemplifies Spinoso REG’s ability to unlock hidden value through structural problem-solving, negotiate complex control issues, and execute high-impact leasing strategies that materially enhance income and institutional asset quality.

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