This case study explores the successful transformation of a 4 ½ acre land parcel originally planned for a small service-oriented retail center into a profitable pad development project in McKinney, Texas. Ms. Bender, in collaboration with her partners, recognized the need to adapt to changing market conditions, leading to the project’s successful re-positioning.
The Initial Plan and Objectives
Upon securing the land with partners in 2021, the original plan for the site was to develop a service-oriented retail center spanning 15,000 sq. ft. The location in McKinney, a rapidly growing area in the Dallas-Fort Worth region, seemed promising for such a venture. Ms. Bender worked diligently with the construction and engineering teams to obtain city approval for the envisioned shopping center.
Re-positioning for Pad Development
Ms. Bender, along with her listing brokers, shifted gears and repositioned the development for pad development.
After careful analysis and in-depth market research, Ms. Bender and her team decided to re-position the project as a pad development. Rather than constructing a full-scale retail center, they would develop individual pads that accommodate various businesses. This shift allowed potential tenants more flexibility and reduced upfront capital, making the project more attractive to investors.
Results
As a result of the strategic pivot towards pad development, Ms. Bender is working toward success. One pad is about to close, indicating strong demand from potential tenants, while a second pad is already under contract. The project’s financial outlook improved significantly.
