There usually are no second acts in real estate. If you develop a property and it does not pan out like you thought, usually another firm gets a chance to clean up the mess. That’s what makes the case of the 305,303 sq. ft. Woodbury Lakes open-air lifestyle center in Woodbury, Minn., a bit unusual.
Woodbury Lakes opened in 2005 as a joint venture project built by RED Development and Opus Northwest. The joint venture sold Woodbury Lakes to Cornerstone Real Estate Advisers the following year.
Then things turned sour. The property became one of many lifestyle centers to face significant challenges during the Great Recession. Ultimately, the project ended up 25% vacant, and Cornerstone turned over the property’s keys to its special servicer, LNR Partners Inc.
But that’s where the story takes a twist. In July, RED re-entered the picture. It teamed up with Fortress Investment Group to buy back the property. Now, RED is already beginning to turn things around and is getting a second chance to succeed with the center.