Les Schwab Tire Center

By this point in my relationship with Les Schwab Tires, I had developed a pretty good feel for the type of locations that worked for them. One property that caught my eye was a large outlot in front of a Menards along Arrowhead Parkway in Sioux Falls, a high-traffic corridor with excellent visibility and strong retail synergy.

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The parcel was nearly three acres, which was more land than we needed. Les Schwab’s prototype works best on about 1.5 acres. I called the owner, a seasoned commercial real estate investor, and explained the concept. Fortunately, he was open to carving the property in half and selling me the portion we needed. We negotiated quickly and reached an agreement.

Les Schwab toured the site and immediately loved it. Everything was moving along smoothly toward closing.

 

Then the curveball came.

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Just before signing the closing documents, the seller told me he wouldn’t proceed unless an issue buried in the shopping center’s underlying documents was cleaned up. It involved a road maintenance provision in the center’s CCRs that he had long disliked. The clause didn’t even affect the parcel we were buying, but because of his history with Menards, he wanted it amended before he would close.

 

In other words, if I wanted the deal done, I had to convince three other property owners in the center—Menards, the adjacent credit union, and a sit-down restaurant—to agree to amend the CCRs.

 

It wasn’t something I had planned on doing, and I wasn’t thrilled about it. But I also knew Les Schwab had found the right site, and I wasn’t going to let the deal die over a document issue.

 

So I did what I always do. I picked up the phone.

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I called the restaurant owner and explained how a Les Schwab store would bring employees and customers into the center every day, many of whom would be waiting while their cars were serviced. That meant people walking across the parking lot looking for lunch or coffee.

 

I called the credit union and explained that a nationally recognized brand moving into the center would only strengthen the retail mix and drive additional traffic to the property.

 

Menards already knew me from prior interactions and was willing to help. With their cooperation—and a lot of coordination between all the parties—we were able to finalize the amendment and clear the path to closing.

 

The deal ultimately came together, Les Schwab secured a prime location along one of Sioux Falls’ busiest corridors, and the store opened to strong community interest and great fanfare.

 

Sometimes the hardest part of a deal isn’t finding the site. It’s solving the unexpected problems that appear right before the finish line.