NEW YORK CITY — New York City-based institutional investment firm BentallGreenOak has closed on its acquisition of Metropolitan Real Estate Equity Management LLC, formerly a division of Washington, D.C.-based global private equity firm The Carlyle Group. The deal creates an entity with approximately $55 billion in assets under management. Moving forward, Metropolitan will operate under the name BGO Strategic Capital Partners.
KATY, TEXAS — Academy Sports + Outdoors Inc. (NASDAQ: ASO) reported a record $1.6 billion in net sales for its fiscal fourth quarter that ended on Jan. 31, 2021, a figure that represents a 16.6 percent year-over-year increase. E-commerce contributed significantly to this growth, rising 60.7 percent year-over-year as customers increasingly shopped online and either picked up their goods in stores or had them delivered. For the fiscal year 2020, the metro Houston-based retailer reported total revenue of approximately $5.7 billion, an increase of 17.8 percent from fiscal 2019. The company’s stock price opened at $25.78 per share on Wednesday, March 31, up from the closing price $12.99 per share on Oct. 2, 2020, shortly after the company went public. Academy Sports + Outdoors operates more than 250 stores across 16 states.
MENLO PARK, CALIF. AND NEW YORK CITY — Flexible office space provider WeWork has entered into an agreement with special purpose acquisition company (SPAC) BowX Acquisition Corp. (NASDAQ: BOWX) to be taken public at an initial valuation of $9 billion. A SPAC is a business entity with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring other companies. Menlo Park, Calif.-based BowX Acquisition Corp. is an affiliate of Bow Capital, a venture capital firm begun by Vivek Ranadive, the founder of TIBCO software and owner of the NBA’s Sacramento Kings. The transaction, which is expected to close by the third quarter, will provide New York City-based WeWork with approximately $1.3 billion of cash to fund future growth initiatives. The transaction will be funded with BowX’s $483 million of cash in trust, in addition to $800 million in private investment from capital sources such as Insight Partners, funds managed by Starwood Capital Group and others. SPACs have recently grown in popularity among private and institutional investors alike as vehicles for taking companies public. According to Forbes, which recently analyzed the U.S. activity of SPACs, these entities raised as much …
ORLANDO — Darden Restaurants reported quarterly earnings and revenue on Thursday that were higher than the Wall Street analysts’ predictions, though they remain down year-over-year. The company’s net income was $128.7 million for its fiscal third quarter that ended Feb. 28, 2021. According to the CNBC, analysts surveyed by Refinitiv had predicted earnings of 69 cents per share, versus the 98 cents that the company received. Net sales decreased by 26.1 percent to $1.73 billion year-over-year, but this number was larger than the expected value of $1.63 billion. Olive Garden accounts for half of Darden’s revenue, and the Italian restaurant saw a same-store sales decline of 25.8 percent. However, LongHorn Steakhouse had a same-store decline of only 12.6 percent. The Darden restaurant chain that was hit the hardest was The Capital Grille, which had same-store sales decline of 45.2 percent. Darden Restaurants is hopeful for the fiscal fourth quarter of the year, as the company is predicting total sales of $2.1 billion and earnings per share up to $1.70. In fiscal 2022, the company predicts to open about 35 restaurants. The company also wants hike wages for its hourly restaurant workers by spending around $17 million in a one-time bonus. …
CHATTANOOGA, TENN. — CBL Properties, a Chattanooga-based mall owner that declared for Chapter 11 bankruptcy in November, has reached an agreement with its credit facility lenders and unsecured note holders that would eliminate a significant amount of debt, pending bankruptcy court approval. The amended restructuring support agreement (RSA) provides for the elimination of more than $1.6 billion of debt and preferred obligations, as well as a reduction in interest expense. In exchange for their approximately $1.4 billion in principal amount of unsecured notes and $133 million in principal amount of the secured credit facility, noteholders will receive in aggregate $95 million in cash, $555 million of new senior secured notes (of which up to $100 million may be received in the form of new convertible secured notes) and 89 percent in common equity of the newly reorganized company. Existing common and preferred stakeholders in CBL Properties are expected to receive up to 11 percent of common equity in the newly reorganized company. “This agreement is a major step forward for CBL’s restructuring plan,” says Stephen Lebovitz, CEO of CBL Properties. “The plan we are announcing today achieves all of the major objectives we have set for CBL post-emergence, including greater …
MIAMI — Commercial real estate services firm NAI Miami has doubled its ownership group from four primary shareholders to eight. Jeff Buell, Joseph Gallaher, Jackie Larkin and Timothy Merriman Jr. are the newest shareholders of the Miami-based firm. These four individuals will now be a part of setting policy and objectives for the company annually. Jeff Buell joined NAI Miami in 2001 as a member of the company’s maintenance department. Buell then became the director of property maintenance before moving to property management, where he currently directs the management of nearly 1.8 million square feet of commercial space throughout South Florida. Joseph Gallaher joined NAI Miami in 2007 as a sales associate. Gallaher has expertise in retail site identification, investment analysis and property acquisition. He has a tenured relationship with Auto Zone, where he recently closed $8.1 million lease value to open a 39,603-square-foot Auto Zone flagship store in South Dade. Jackie Larkin joined NAI Miami in 2012 as a marketing coordinator and has since been promoted to director of operations and marketing. Larkin works to coordinate marketing and administrative efforts for 90-plus properties with a commission value of $11 million for NAI Miami. Larkin is responsible for all the …
AUSTIN, TEXAS AND ATLANTA — Austin-based Roscoe Property Management (RPM) and Atlanta-based CF Real Estate Services (CF) have merged to create an entity that will provide third-party property management services to a portfolio of more than 84,000 multifamily units across 17 states. The combined organization will have more than 1,800 employees with nine regional offices across the country. RPM, the acquiring entity, will remain headquartered in Austin. “This merger truly expands our geographic reach, strengthens our organizations and provides significant opportunities for the future,” said Jason Berkowitz, president and founder of RPM. “While we will operate under the RPM brand nationally, leaders from both companies have formed a collective executive team that will guide the organization under our shared alignment of a ‘people-first culture.’”
NEW YORK CITY — WHP Global, a New York City-based firm that acquires global consumer brands, has purchased a controlling stake in Tru Kids Inc., the parent company of Toys ‘R’ Us. WHP Global joins a group of institutional shareholders that includes funds managed by Solus Alternative Asset Management and Ares Management Corp. Going forward, WHP will manage Tru Kids’ global business and direct its strategic expansion, which according to CNBC will include the reopening of some U.S. stores. Neither the network nor the companies involved in the deal specified how many U.S. stores would open or in what markets the reopenings would occur. New Jersey-based Tru Kids announced in 2018 that it would be closing and/or selling off all 735 Toys ‘R’ Us stores in the United States. However, the chain and its sister brand, Babies ‘R’ Us, still operate roughly 900 stores and e-commerce sites in other parts of North America, as well as in Africa, Asia, Europe, Australia and the Middle East. “Our investment in Toys ‘R’Us reflects our belief and passion for the brand,” said Yehuda Shmidman, chairman and CEO at WHP Global. “We are thrilled to be taking the reins of the world’s leading toy …
CHARLOTTE, N.C. — Blackstone Real Estate Partners and Starwood Capital Group have agreed to form a 50/50 joint venture to acquire Extended Stay America (NYSE: STAY) in a deal valued at $6 billion. Barry Sternlicht, CEO of Starwood Capital (NYSE: STWD), cited Extended Stay America’s performance amid the COVID-19 pandemic as a key factor behind the acquisition. “Extended Stay has demonstrated resilience over the past year despite persistent challenges due to government lockdowns and travel restrictions,” says Sternlicht. “We are excited about the company’s growth opportunity as restrictions ease and we’re confident that, in partnership with Blackstone, our team has the right experience to drive continued success.” “Travel and leisure is one of Blackstone’s highest conviction investment themes, and we have confidence in the extended stay model,” adds Tyler Henritze, Blackstone’s head of U.S. acquisitions. The Charlotte-based hotel owner operates 649 Extended Stay America hotels in the United States spanning over 69,000 rooms. The company’s subsidiary, hospitality REIT ESH Hospitality Inc., owns 563 of those hotels. The remaining 86 properties are franchised, according to Extended Stay America’s fourth-quarter 2020 earnings report. Blackstone and Starwood Capital’s cash offer is for $19.50 per share, a premium of 15.1 percent to Extended Stay …
CARLSBAD, CALIF. AND DALLAS — Carlsbad, Calif.-based equipment and apparel manufacturer Callaway Golf Co. (NYSE: ELY) has completed its merger with Topgolf Entertainment Group. The deal was originally announced in October 2020. Under the terms of the merger agreement, Callaway issued approximately 90 million shares of its common stock to the shareholders of Topgolf, excluding Callaway, which previously held approximately 14 percent of Topgolf’s outstanding shares. Callaway shareholders now own approximately 51.3 percent of the outstanding shares of the newly combined entity, and former Topgolf shareholders (excluding Callaway) own approximately 48.7 percent. Both firms have strong real estate ties to Texas. Topgolf Is based in Dallas and operates approximately 15 percent of its 80 venues across the country in Texas markets. Callaway has been a longstanding industrial user at AllianceTexas in Fort Worth, recently expanding its total footprint at the Hillwood-owned development to roughly 784,000 square feet. “Callaway and Topgolf are just better together,” said Chip Brewer, president and CEO of Callaway. “Callaway’s leadership in the global golf equipment market and geographic diversity, combined with Topgolf’s revolutionary technology platform and access to golfers of all abilities, will allow both companies to accelerate growth and create competitive advantages.”