Derby Retail

~79%

Sale price above purchase price

THE OPPORTUNITY

In August 2024 PETRA acquired two neighborhood retail centers in Derby, Kansas, off-market: nine suites and about 14,700 square feet on N. Rock Road and N. Baltimore.

The locations were good. The management was not. That gap was the opportunity.

THE CHALLENGE

Many tenants were month-to-month. Modified gross leases left the owner absorbing every increase in taxes, insurance and maintenance. Rents trailed the Derby market, one suite sat vacant, and the older building needed a new roof.

WHAT WE DID

Rewrote every lease. Within five months of closing, PETRA presented new agreements across both centers, bringing rents to market and converting to NNN terms. By early 2025 every remaining tenant had signed.

Backfilled and reinvested. Two tenants chose to leave, and PETRA backfilled each space. The Rock Road roof was replaced, both lots were sealcoated and restriped, exteriors were repainted and stucco was repaired.

Simplified the debt. Two layers of debt were refinanced into one loan with lower payments.

Sold when the plan was achieved. With both centers fully leased in February 2026, PETRA took them to market rather than hold for its own sake.

THE OUTCOME

PETRA sold both centers to a repeat PETRA buyer in August 2026, two years after acquisition and a year ahead of the planned hold, at about 79% above the purchase price and about 13% above the refinance appraisal.

Derby kept two fully leased neighborhood centers serving local businesses.

WHY IT MATTERS

Derby Retail shows that value often sits in the paperwork as much as the property. Fixing the leases, caring for the buildings and treating every tenant fairly turned two tired centers into assets a repeat buyer was glad to own.

This case study describes a single project and is for informational purposes only. It is not an offer to sell or a solicitation of an offer to buy any security. Past performance does not guarantee future results.