With its fully integrated in-house development capacity, Petrovich Development Company is ideally structured to be the lead development partner where an equity fund wants to acquire a retail portfolio that desires to partner with an ethical, established, agile, highly experienced, in place, boots on the ground development team with over three decades of successful experience in developing and entitling infill retail projects. PDC is also the best at developing sites in the western United States for retail tenants who want to deeply penetrate the core of a trade area as opposed to simply dotting the perimeter with below average stores.
To date, Petrovich Development Company has primarily performed these services for multiple locations such as Safeway, Costco, Rite Aid, Walgreen’s and the associated tenants that accompany these successful retailers such as Kohl’s, Best Buy, Michael’s, Sport’s Authority, Toys R Us and many more. PDC has emerged from the Great Recession stronger than ever and is already developing new projects totaling more than $400 million. Below is a list of our in-house departments and expertise:
Due diligence and Acquisition of land and/or existing buildings for redevelopment
PDC has the experience and capability to analyze complex investment properties for acquisition, determining correct market assumptions, purchasing existing shopping centers for re-use, partial demolition and acquiring vacant land with entitlement issues. We are particularly good at expanding the potentials of a site by solving issues such as offering creative deal structures to stubborn sellers who have been entrenched for decades. Transaction creativity has been the hallmark of our company
Acquiring key properties to fit our needs and those of our retailers is one of our strong suits. We have acquired as many as 13 parcels to create a 10-acre neighborhood shopping center for a trade area that was greatly under served. We did this for Safeway at a deep infill location with an 80,000 car per day traffic count and high income levels which is now meeting and exceeding its potential. It is also one of the most stunning neighborhood shopping centers built in Northern California. PDC has created numerous developments for Rite Aid, Walgreen’s and Costco and positions them in extraordinary locations, many of which are their highest volume stores in their entire chain.
With our key personnel having 15 years of experience, serving on planning commissions and planning countless sites, we are able to maximize the utilization of the properties we develop, making them timeless in design, layout, and guaranteed to avoid obsolescence.
We are CEQA experts who have an abnormal success rate in reaching the finish line involving the most contentious and highly documented non-governmental Environmental Impact Reports and associated entitlements in California’s history. With an impeccable record, PDC has never lost an entitlement process thanks to its ability to answer the concerns of the community coupled with the outstanding personal relationships with all governmental staff and elected politicians. We have a reputation of over delivering what we promise and set out to do for all stakeholders involved in our projects.
PDC has maintained outstanding relationships with nearly all commercial lending institutions doing business in Northern California. The company is 100% owned by Paul and Cheryl Petrovich and there are no outside investors to influence or fracture the decision making process which could otherwise occur to the detriment of our clients.
PDC’s in house construction managers have overseen almost $1 billion of construction, including major backbone utility infrastructure as well as vertical development. We know how to value engineer a project and give specific guidance to our architects and engineer’s before they start our construction documents rather than waiting until a project is permitted before bidding only to find out we have a bust in the budget. This enables us to deliver the greatest value to ourselves and our retailers. PDC sets the mark for quality construction in our industry and we have found that it is key to higher volumes for our retailers; results in less turn over and higher returns on sale. Shoppers choose to go where they feel safe and where the quality of their shopping experience is higher than any other to spend their precious dollars.
In House Leasing
If a retailer happens to have vacant locations or simply wants to downsize due to the advent of internet shopping, we have professional-highly talented leasing personnel who have managed to keep PDC’s portfolio at least 97% leased during even the toughest of economic cycles without sacrificing our returns.
Visit any of our projects to experience the difference. Each of our locations is superbly well maintained, free of any signs of vandalism or graffiti. As importantly, our properties are the safest of any in the region and can be visited with confidence during any time of day. Our high level of maintenance is amazingly achieved with some of the lowest triple net charges in the industry. How? We hold our vendors accountable for the job they are contracted to do and we oversee and supplement their work with our own maintenance team. Many of our older projects look less than five years old due to our impeccable property management practices. At Petrovich Development Company we do not defer maintenance.
Petrovich Development Company’s property managers have over 50 years of combined experience and focus on balancing the needs of the tenant with the desires of the consumers to create extremely well designed centers that are impeccably maintained to ensure a secure and enjoyable shopping experience. State-of-the-art financial reporting systems provide managers and tenants with timely and accurate information.
We manage only our own development projects, enabling us to develop close relationships with our tenants, thereby ensuring their success and the success of our centers. Our property managers are also experts in spending precious common area money more judiciously than any of our peers which results in higher quality maintenance-usually for below market comparison triple net charges. Our staff is on a first name basis with the tax assessors due to our vigilance while managing our assessed property values. Further, since PDC rarely sells its assets, our property taxes are usually the lowest in the region for comparably sized and aged properties.
In House Legal
PDC has extremely intelligent and talented transactional lawyers who are specialists in what we develop. Normally we will turn around major drafts of anchor leases within 72 hours and usually the same day when the process reaches its mid point.