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210,000-SF HQ Purchase a Unique Deal

PLYMOUTH, MN-Retailer Christopher & Banks pays $8.8 million to Prudential Insurance Co. of America for its headquarters building but will continue leasing space into 2005 because of an advantageous sublease deal.

By Jim McCartney | Updated on May 14, 2001

PLYMOUTH, MN-While sale-leasebacks are still common, Christopher & Banks recently completed a purchase-leaseout-leaseback-sublease. The women’s retailer, formerly called Braun’s Fashions Corp., says it paid $8.8 million to Prudential Insurance Co. of America to buy the 210,000-sf facility here where it has its headquarters and distribution center.

Christopher & Banks has been subleasing its space — now at 100,000 sf — in the building for seven years from another company, who has a lease with Prudential that expires in 2005, says Andy Moller, chief financial officer at the retailer. Moller would not identify the company from whom the retailer is subleasing space. Christopher & Banks was paying less on its sublease than the unidentified company pays on its lease, so Moller says Christopher & Banks found it advantageous to keep the leases in place.

That’s why, after the purchase, Christopher & Banks will continue to lease the entire facility to the unidentified third party and sublease it back.

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