Glimcher, Nomura recapitalize ownership of Seattle's SuperMall Marking its fourth entry into the value-oriented fashion and entertainment megamall category, Glimcher Properties Limited Partnership, the operating partnership of Glimcher Realty Trust, Columbus, Ohio, and Nomura Capital, New York, have formed a partnership to recapitalize the ownership of the SuperMall of the Great Northwest in Seattle for $103 million, consisting of $62.5 million in new debt and $40.4 million in new equity. Current SuperMall owner and developer Hapsmith Development Corp., Beverly Hills, Calif., and co-owner Rosche Capital Corp., Corpus Christi, Texas, will contribute interests to the partnership and will retain an interest.
Work to begin on $60 million lifestyle entertainment center Work will begin soon on Cities Pavillion, a 44-acre, 500,000 sq. ft. project that incorporates entertainment, sports, learning and retail activities on a site just north of the I-10 freeway in Redlands, Calif. Occupancy at the $60 million "lifestyle entertainment center" is anticipated for fall 1998. Timberlake Group International Inc. is the developer and Real Estate Portfolio Specialists Inc., Pasadena, Calif., is handling leasing.
Mesirow Financial closes on 16-store deal with Value City In the firm's largest sale-leaseback transaction to-date, Chicago-based Mesirow Financial's Realty Sale-Leaseback group was the principal investor purchasing 16 properties for $95 million from Value City and leasing them back under the terms of a 20-year bondable net lease. Value City's portfolio, consisting of 13 existing department stores and three warehouse facilities, totals 2.18 million sq. ft.
Industrial site finds new life as Linens 'N Things superstore Usually it's news when a vacant Big Box site finds re-use as another property type; this time, it's the other way around. Northland Investment Corp., Newton, Mass., has secured a long-term lease for 35,000 sq. ft. with Linens 'N Things for a new superstore at 260 Needham Street in Newton. Completed in 1954 as an industrial building, the facility was most recently occupied by Federal Express Corp. as a distribution facility.
UTF purchases 15 Rite Aid stores in sale-leaseback transaction United Trust Fund Limited Partnership, a Miami-based real estate investment firm specializing in the purchase of net leased corporate real estate, has purchased 15 Rite Aid Drug Stores for an aggregate purchase price of approximately $48 million. Simultaneous with the purchase, the stores were leased back to Rite Aid for an initial term of 22 years.
Faison starts Atlanta-area center after Gaylans, JCPenney sign on With two retailers on board, Faison, Atlanta, began work in November on Town Center Commons, a 163,000 sq. ft. shopping center on Barrett Parkway in Kennesaw, Ga. Gaylans, The Limited's new mega-sporting goods retailer, will take 81,000 sq. ft. in two stories, and JCPenney Home Store will occupy 43,000 sq. ft. The $16 million project is slated for completion in fall 1998.
McCarthy completes new Niketown at Caesar's Palace St. Louis-based McCarthy has completed a build-out for the new 43,000 sq. ft., $7 million Niketown store in an expansion of the Forum Shops at Caesar's Palace Hotel and Casino, in Las Vegas. Designed by BOORA Architects, Portland, Ore., the entertainment retail facility features an atrium, retail and museum space, custom glass elevators and lighted bridges.
IREM report analyzes operating data The down cycle for retail may be starting to turn, according to the new 1997 edition of Income/Expense Analysis(R): Shopping Centers, Open and Enclosed, a recently released study of retail property operating results from the Institute of Real Estate Management, Chicago.
After several years of flat or declining income performance, both enclosed malls and open shopping centers reported increases in net operating income in 1996. And operating expenses decreased for both types of centers, reversing the previous year's tendency, according to the survey, which analyzes the previous year's operating data for almost 800 open centers and enclosed malls throughout the country.
To order the report, which sells for $230.95 (plus shipping and handling), call IREM at (800) 837-0706, ext. 4650.
NREI welcomes your comments and news items.