Understanding what drew AmREIT to Casa Linda requires a bit of knowledge about the company’s history. Although the company purchased the shopping center two years ago from fellow retail REIT Regency Centers (NYSE: REG), the decision to buy and redevelop the property actually has its roots in a European adventure that took place 35 years ago.

Situated on three of four corners at the intersection of Garland Rd. and Buckner Blvd, Casa Linda Plaza serves some of Dallas’ best established neighborhoods including Lake Highlands, Forest Hills and Lakewood.

Company legend has it that founder H. Kerr Taylor developed his vision for AmREIT’s distinctive operating strategy on the seat of his Triumph motorcycle in 1973 while touring some of Europe’s historical sites—Paris, Madrid, Florence and Rome, to name a few. Along the way, Taylor developed a unique theory: the life of these legendary cities all revolved around their indelible commercial corners.

Taylor also observed that such sites were often owned by civic patricians who passed the properties down between generations. As a result, it became an ad hoc tradition for families to constantly look for ways to improve such sites to suit the needs of the surrounding community.

Taylor founded AmREIT in 1985, eventually building up his company from a team of three to a staff of 70 who manage $1 billion in assets. Hefner articulates the upshot of the lessons Taylor learned on his European odyssey as, “the quality of the location is what makes the real estate valuable.” Today, this revelation clearly influences AmREIT’s “Irreplaceable Corners” operating philosophy. (See sidebar for further details.)

A Surge of Good Vibrations

Originally built in 1945, Casa Linda stands today as the second oldest retail center in the Dallas area. Hefner notes that the property certainly fits the Irreplaceable Corners vision.

“At Casa Linda, we saw a quality corner in a vibrant area where we could make something good happen,” he says.

The 325,000-square foot facility sits inside the I-635 highway loop. Two of Dallas’ major thoroughfares, Garland Road and Buckner Boulevard, intersect at Casa Linda, dividing the property’s facilities among three of the intersection’s four corners.

Casa Linda Plaza has tremendous traffic counts, a high populated area surrounding it, significant barriers to entry and an emerging demographic.

Hefner notes that the area surrounding Casa Linda currently is experiencing an “infill population surge.” In fact, the Casa Linda site is located in close proximity to some of Dallas’ upscale neighborhoods: Forest Hills, Lake Highlands and Lakewood. More than 145,000 households with nearly 400,000 residents lie within fives miles of the property. In the one-mile radius closest to Casa Linda, inhabitants have an average household income of close to $65,000.

Casa Linda also offers the advantage of being located near two of Dallas’ most prominent attractions. To the west of the property is White Rock Lake, the city’s largest public park. Casa Linda shoppers also can visit the Dallas Arboretum by heading just a few miles south down Garland Road. Additionally, Doctors Hospital occupies the southwest corner of the Garland-Buckner intersection.

It’s not just the location that attracted AmREIT to Casa Linda, however. The property’s original developers incorporated Spanish Colonial Revival-style themes into the property’s striking architectural design, featuring aggregate tile roofs and clay-colored stucco buildings. The eye-catching look and feel, which was particularly popular in the early half of 20th century, harkens back to the property’s roots and gives Casa Linda a Southwestern sensibility befitting its Texas home.

Additionally, the shopping center offers a diverse group of tenants, ranging from health and wellness storefronts to national banks to independent restaurants. The property is anchored by a 60,000-square foot Albertson’s grocery store, and it also features a 24,000-square foot 24-Hour Fitness site and a 12,000-square foot Petco outlet. The entire property consists of 77 retail units and is approximately 80 percent full at present.

Civic Pride

Almost immediately after acquiring Casa Linda, AmREIT began making cosmetic improvements to the grounds and property, such as tree-trimming and shrub removal, as well as adding landscaping enhancements. AmREIT also hired The Weitzman Group, a major commercial real estate services firm in Texas, to manage Casa Linda’s leasing. Design plans for the renovation of the property were completed in late 2007, and AmREIT began actual construction on the redevelopment in April.

“We plan to bring the grandeur of Casa Linda Plaza back architecturally, as well as modernize the conveniences of the property,” Hefner says.

You're Irreplaceable The Irreplaceable Corners principles establish a set of criteria for AmREIT acquisitions, including: • located on corners in major metropolitan area; • high barriers to entry; • substantial daytime and evening population; • a large amount of daily car traffic; and • a high average household income within a 3- to 5-mile radius of the property.

To do so, AmREIT’s designers took pains to incorporate the local community’s feedback throughout the redevelopment planning. For example, residents expressed a strong desire to update the property’s landscaping and facilities while also maintaining Casa Linda’s distinct architectural style. They also requested that Casa Linda maintain a strong mix of both national and local businesses throughout the shopping center and that AmREIT take steps to improve the site’s parking logistics and traffic flow.

Hefner says the value of the input received from Casa Linda’s neighbors has spurred AmREIT to continue soliciting such feedback on the company’s future projects when appropriate. Judging by Hefner’s take on the role of the Casa Linda’s neighbors in the redevelopment process, the emphasis that AmREIT puts on benefits of community involvement in these projects becomes clear.

“AmREIT went to the community because this shopping center is their shopping center, too,” he says.