CASE STUDY 02

ADAPTIVE REUSE

From Vacant Feed Store to National Franchise Tenant

The Opportunity

An underutilized, vacant farm cooperative store in Staunton, Virginia sat dormant despite strong underlying real estate fundamentals. The structure was sound, but its former use limited demand and perceived value.

Simultaneously, our brokerage team identified Dave’s Hot Chicken seeking expansion into the Western Virginia market.

The Strategy

Recognizing the site’s location strength, visibility, and traffic patterns, our team repositioned the property for adaptive reuse. We:

  • Conducted feasibility and site analysis
  • Negotiated franchise requirements and footprint needs
  • Value-engineered buildout costs to meet target rent thresholds
  • Structured improvements to achieve required tenant economics
  • Leveraged the existing structure to reduce redevelopment cost per square foot

By creatively aligning construction scope with the tenant’s required rent metrics, we were able to deliver a cost basis that supported a sub-market leading valuation.

The Outcome

The repositioned asset stabilized at a ~5% capitalization rate, transforming a dormant agricultural property into a high-performing national franchise location.

The project created:

  • Higher net operating income
  • Long-term lease stability
  • Increased asset valuation
  • Revitalization of a previously underutilized corridor

This was a strategic example of market awareness, brokerage alignment, and disciplined value engineering.