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Pier 1, Chesapeake Ink $104M Sale-Leaseback

FORT WORTH-After months of speculation, Pier I Imports finds a buyer for its 460,000-sf HQ. The definitive agreement includes a 250,000-sf lease for seven years with options.

By Connie Gore | Updated on March 31, 2008

FORT WORTH-Pier 1 Imports Inc. plans to sell its 460,000-sf landmark headquarters campus for $104 million to Oklahoma City-based Chesapeake Energy Corp. The sale-leaseback, long rumored in the market, is expected to close before June 30.

In this morning’s press release, Alex Smith, president and CEO of the Fort Worth-based Pier 1, says the agreement calls for a seven-year lease for 250,000 sf to be signed in tandem with the sale. Pier 1 developed the 14.6-acre Downtown campus at 100 Pier 1 Place in 2004. According to an SEC filing, the lease terms include one three-year renewal option and the right to terminate the agreement at the end of the pact’s fifth year.

Smith says the executive team has spent the past year “evaluating options” for its headquarters. “We had three goals in mind: recouping our investment, minimizing on-going costs and finding a quality business partner for a leasing relationship,” he says.

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