LOS ANGELES AND DENVER — A subsidiary of Los Angeles-based Ares Management has agreed to acquire 100 percent of Denver-based Black Creek Group’s U.S. real estate investment advisory and distribution business. Black Creek Group had approximately $11.6 billion assets under management as of March 31 in core/core-plus real estate strategies across two non-traded REITs and various institutional fund vehicles and spanning industrial, multifamily, office and retail property types. Additionally, the firm’s senior management team has an average of 25 years of experience in sourcing, acquiring, operating and developing properties in the United States. The transaction is expected to expand the Ares Real Estate Capital’s existing capabilities and product offerings. The buyers says the deal will also broaden its real estate platform with vehicles that complement the firm’s existing real estate debt and U.S. and European value-add and opportunistic funds. The combined real estate group will have approximately $29 billion assets under management and the transaction will boost Ares’ non-traded REIT capital by $5.1 billion. Upon closing, key members of the Black Creek leadership team will remain in place and become part of the Ares Real Estate Group, which Bill Benjamin leads. “[This transaction] further scales our real estate business, expands …
BALTIMORE — Athletic apparel giant Under Armour Inc. (NYSE: UA) has reported $1.3 billion in sales in its fiscal first quarter of 2021, a 35 percent jump from last year’s first-quarter sales. The Baltimore-based company’s fiscal first quarter ended on March 31. Under Armour’s earnings in the quarter totaled 16 cents per share, which far surpasses the 3 cents expected by analysts, according to CNBC. The company reported an increase of $1.26 billion in revenue from the $930.2 million recorded in the first quarter of 2020. Additionally, the brand’s net income increased to 17 cents per share, or $77.8 million. Last year, the company experienced a loss of $589.7 million. Under Armour expects its sales to increase by 70 percent in the second quarter compared with second-quarter 2020, the period in which the U.S. economy took the full brunt of the COVID-19 pandemic. As of March 31, Under Armour operated 426 stores. Under Armour’s stock price closed on Wednesday, May 19 at $18.26 per share, up from $7.70 a year ago, a 57.8 percent increase.
NEW YORK CITY — Macy’s Inc. (NYSE: M) reported approximately $4.7 billion in net sales for its 2021 fiscal first quarter that ended on May 1, an increase of about 56 percent from $3 billion in net sales during that period last year. Macy’s CEO Jeff Gennette cited the windfalls of federal stimulus funds and the expanding vaccine rollout as key to the company exceeding expectations. In addition, Gennette said that more Macy’s customers are engaging with its online platform, enabling the New York City-based retailer to post a 34 percent increase in digital sales from the first quarter of 2020. Macy’s has revised its full-year guidance and is now projecting to generate between approximately $21.7 billion and $22.2 billion in net sales this year; previously it had estimated that range to be roughly $19.7 billion to $20.7 billion. Macy’s stock price opened at $19.44 per share on Tuesday, May 18, up from $5.55 per share a year ago.
SEATTLE — Amazon (NASDAQ: AMZN) is planning to hire 75,000 employees in its fulfillment and logistics network across the U.S. and Canada as the company continues to expand its footprint. Hiring is currently underway with the most openings in Arizona, California, Colorado, Georgia, Illinois, Kentucky, Maryland, Michigan, Minnesota, New Jersey, Pennsylvania, Tennessee, Washington and Wisconsin. Amazon also announced pay increases across its fulfillment and transportation networks with these roles offering an average pay of more than $17 per hour, plus sign-on bonuses in many locations of up to $1,000. Additionally, the company offers full-time employees benefits, including health, vision and dental insurance, 401(k) with 50 percent company match, paid parental leave and access to various company-funded learning opportunities that includes Amazon’s Career Choice program, which prepays 95 percent of tuition for courses in high-demand fields. Amazon is also offering $100 to any new hires who show proof of COVID-19 vaccinations. In late March, the company began rolling out on-site vaccination events at fulfillment centers in Missouri, Nevada and Kansas. The program has now expanded to more than 250 locations across the U.S. and Canada and offers access to the COVID-19 vaccine for more than half a million front-line employees, contractors …
CHICAGO, NEW YORK CITY AND LONDON — Elliott Investment Management LP, the parent company of Barnes & Noble, has entered into a definitive agreement to acquire the assets and business operations of Paper Source. The Seattle Times reports that the purchase price was approximately $91.5 million. The acquisition will allow the Chicago-based stationery and party supplies retailer to emerge from Chapter 11 bankruptcy and to continue to operate 130 stores across the country, as well as its wholesale division, Waste Not Paper by Paper Source. James Daunt, CEO of New York City-based Barnes & Noble, will oversee daily operations of both companies. While Paper Source and Barnes & Noble will continue to function as separate businesses, executives involved in the deal noted that the complementary nature of the two retail operations creates potential for future partnerships. Elliott Investment Management originally acquired Barnes & Noble in September 2019.
NEWPORT BEACH, CALIF. — Chipotle Mexican Grill (NYSE: CMG) is increasing its restaurant wages, resulting in an $15 average hourly wage by the end of June, according to the Newport Beach-based company. Additionally, the Chipotle employees can advance to a “restaurateur” status, the highest general manager position, in approximately three-and-a-half years, with average compensation of $100,000. Wage increases for new and existing hourly and salaried restaurant employees will be rolled out over the next few weeks and will result in hourly crew member starting wages ranging from $11 to $18 per hour. The company has also launched a $200 employee referral bonus for crew members and a $750 referral bonus for apprentices and general managers. With approximately 200 restaurants slated to open this year coupled with continued growth and demand, Chipotle plans to hire 20,000 new team members across the United States. The company will host a virtual career fair on Discord on May 13.
SAN FRANCISCO — M. Art Gensler Jr., founder of San Francisco-based global design firm Gensler, passed away on Monday. At the age of 85, Gensler died at his Mill Creek, Calif., home following an 18-month battle with lung disease, according to the San Francisco Chronicle. In 1965, along with his wife Drucilla Cortell Gensler and James Follett, Gensler co-founded the design firm M. Arthur Gensler Jr. & Associates in San Francisco. Since its founding, the firm has grown from a three-person operation to more than 5,000 employees across 50 locations globally. “Art didn’t want to be a ‘starchitect,’” says Andy Cohen, Gensler co-CEO. “In fact, what he built was a constellation of stars by hiring smart people and getting out of their way. It’s why Gensler is a pioneer in our industry, and Art’s legacy will remain embedded in our firm’s unique culture.”
BETHESDA, MD. — Marriott International Inc. (Nasdaq: MAR) posted a net loss of $11 million in first-quarter 2021, a notable shift from last year when the firm generated $31 million in earnings, though that quarter did not experience the full shock of the COVID-19 pandemic. Marriott’s earnings were adjusted to 10 cents a share, which was higher than what Wall Street estimated at 3 cents per share, according to The Wall Street Journal. Marriott’s revenue decreased from $4.7 billion in first-quarter 2020 to $2.3 billion in first-quarter 2021 as worldwide RevPAR (revenue per available room) dipped 46.3 percent year-over-year. Additionally, the company saw an adjusted net income of $34 million, which is roughly 79 percent lower than the first quarter of last year ($160 million). Marriott’s CEO Tony Capuano predicts the company’s earnings to bounce back due to a higher demand for travel in the United States and Canada following the widespread implementation of the three COVID-19 vaccines. “As vaccines roll out around the world and government restrictions ease, I am optimistic that demand will continue to strengthen,” says Capuano. According to Capuano, who took over a few months ago from the late Arne Sorenson, the company saw an uptick …
SAN DIEGO and PHOENIX — Realty Income Corp. (NYSE: O), a San Diego-based real estate investment trust active in the net lease sector, has agreed to acquire VEREIT (NYSE: VER), a Phoenix-based real estate investment trust in the single-tenant net lease sector. The all-stock transaction will create a combined company dominant in the net lease space with an enterprise value of approximately $50 billion, making it one of the largest real estate investment trusts. VEREIT shareholders will receive 0.705 shares of Realty Income stock for every share of VEREIT stock they own. After the merger agreement closes, the combined company — operating as Realty Income — plans to create a taxable spin-off of substantially all of the office properties of both companies into a new, self-managed, publicly traded REIT known as SpinCo. Realty Income and former VEREIT shareholders are expected to own about 70 percent of Realty Income and 30 percent of SpinCo. “This is a huge game changer for the REIT market,” says Scott Merkle, managing partner of SLB Capital Advisors, which specializes in net lease transactions. “It creates the sixth largest REIT, makes Realty Income multiples larger than the nearest net lease competitor, and allows them to become …
ATLANTA — The Atlanta Braves and Atlanta United FC, the city’s professional baseball and soccer clubs, plan a return to 100 percent attendance at their respective home stadiums, Truist Park and Mercedes-Benz Stadium. Both teams plan to increase their seating capacities to pre-pandemic levels. At Truist Park in Cobb County, the Braves plan to bring the stadium to full capacity to about 41,000 seats. Starting with the May 7 game against the Philadelphia Phillies, the Braves says Truist Park will be at full capacity. Atlanta United will also bring its home games to 100 percent capacity, which will be about 42,500 seats. According to the Atlanta Braves’ website, all health and safety procedures will still be intact, including face masks, cashless concessions, mobile ticketing and ordering and a no bag policy. The Mercedes-Benz Stadium says their health and safety procedures will also be maintained, such as face masks requirements, areas with hand sanitization stands and cleaning procedures before, during and after events.