(For more retail coverage, click GlobeSt.com/RETAIL.)
OAK BROOK, IL-Inland Western Retail Real Estate Trust, Inc. has picked up 25 Mervyns stores totaling 1.9 million sf for $221.8 million. Two of the stores are in Texas, while the remaining 23 are in California.
As part of the deal, Mervyns will sign leases through 2025 at all 25 locations with the owners of Mervyns, Capital Partners Inc., Cerberus Capital Management, LP, and Lubert-Adler and Klaff Partners. "Mervyns department stores have become increasingly profitable since transitioning to private ownership, and we expect these locations to be steady sources of rental income for a long time to come," says Inland Real Estate Acquisitions, Inc. chairman Joe Cosenza, who negotiated on behalf of the REIT.
While the deal works out to $117 per sf, the current rent will be $9.03 per sf. "The aggregate annual rent will be in excess of $17 million and the lease provides for 1.2% annual rent increases over the 20-year lease term," Cosenza says.
The most valuable locations are in San Diego, Escondido, CA and Oceanside, CA. The San Diego property was valued at $13.1 million in the deal while the Escondido and Oceanside locations commanded $12.6 million each.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
