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.”
PITTSBURGH — Dick’s Sporting Goods (NYSE: DKS) reported 19.3 percent growth in same-store sales for its fiscal fourth quarter, which ended on Jan. 30, 2021, as well as a record-setting 9.3 percent sales growth for the full year 2020. In addition to posting healthy sales within its brick-and-mortar stores as customers sought home workout equipment in lieu of visiting gyms amid the COVID-19 pandemic, the Pittsburgh-based retailer also reported year-over-year growth of 100 percent across its online sales platform. E-commerce sales increased by 57 percent alone in the fourth quarter, though this figure represents a decline from the 95 percent growth in e-commerce sales that Dick’s Sporting Goods posted in its fiscal third quarter. The company recorded quarterly net sales of approximately $3.1 billion, nearly a 20 percent increase from the fourth quarter of 2019. Dick’s Sporting Goods also opened a number of new stores in 2020 in markets such as Houston, San Antonio, Atlanta, Cape Cod and metro Boston and now operates about 730 stores throughout the country. The company’s stock price opened at $72 per share on Thursday, March 11, up from $30.56 per share a year ago. “We’ve never had a year quite like 2020,” said Ed …
HOUSTON — Berkadia has added a new multifamily investment sales team to its Houston office with the hiring of Chris Curry, Todd Marix, Joey Rippel and Chris Young, all of whom are joining the company from JLL. The team works with a diverse client base, including institutions, private capital, developers, special servicers and government institutions across all multifamily asset classes. Berkadia’s hiring of a new Houston multifamily investment sales team from JLL follows the departure of a longstanding, eight-member team to Walker & Dunlop earlier this month.
AUSTIN, TEXAS — Alamo Drafthouse Cinema has filed for Chapter 11 bankruptcy protection and entered into an asset purchase agreement with its group of senior lenders that is led by California-based Altamont Capital Partners and Fortress Investment Group. The agreement involves the sale of “substantially all” of the company’s assets, though it remains unclear how many of its 41 theaters Alamo Drafthouse plans to close. As part of its filing, Alamo Drafthouse has asked the U.S. Bankruptcy Court for the District of Delaware to approve a 75-day timeline for restructuring its debt and has secured $20 million in debtor-in-possession financing from its creditors to cover operational costs during that period. The company, which operates some of its theaters and franchises others, cited the COVID-19 pandemic’s “unprecedented and outsized impact upon the movie theater and dining industries” as the central driver behind its decision. Alamo Drafthouse, founded in Austin in 1997, was one of first entertainment concepts to bring elevated food and beverage offerings into the theater space.
IRVING, TEXAS — Affiliates of Apollo Global Management Inc. (NYSE: APO) have entered into an agreement to buy discount retailer Michaels (NASDAQ: MIK) and take the company private in a deal that is valued at approximately $5 billion. Under the terms of the agreement, Apollo will tender an offer to acquire all outstanding shares of Michaels common stock for $22 per share in cash. The purchase price represents a 47 percent premium over the Irving-based arts and crafts retailer’s closing stock price on Feb. 26, the last trading day prior to press speculation about a potential transaction involving Michaels. The deal is expected to close during the first half of Michaels’ fiscal year. “Michaels has continued to elevate its position as the leading player in the exciting arts and crafts industry,” said Andrew Jhawar, Apollo Global Management’s senior partner and head of retail and consumer group. “We believe there is a significant opportunity to enhance the Michaels brand, store experience and omnichannel offering to its customers across North America.” Michaels currently operates about 1,250 stores across the United States and Canada and employs approximately 45,000 people.
HOUSTON — Walker & Dunlop has hired a former Berkadia multifamily investment sales team to its Houston office that consists of Ryan Epstein, Jennifer Ray, Nathan Jones, Scott Bray, Leslie Ginzel, Lauren Ehlers, Jamie VanWunnik and Chris Cassidy. The team, led by Epstein and Ray, brings approximately 30 years of multifamily investment sales experience within the Houston market to Walker & Dunlop. Epstein and Ray have transacted more than $7.5 billion in apartment sales over the course of their careers.
NEWPORT BEACH, CALIF. — CapRock Partners has acquired, leased or sold nearly 10 million square feet of industrial space across the Western United States and opened two offices in Phoenix and Northern California, welcoming 26 new employees, according to the Newport Beach-based firm. CapRock Partners signed 10 leases totaling more than 5.3 million square feet; acquired eight properties and land sites totaling 4.2 million square feet; and sold 196,534 square feet across two properties. Additionally, an institutional investor retained the company to manage a six-asset, 1.9 million-square-foot industrial real estate portfolio that spans four markets. These transactions bring CapRock’s total investment, development and asset management pipeline to more than 25 million total square feet since inception in 2009. On the development side, the company completed more than 4.1 million square feet of Class A industrial product across the Las Vegas basin and Inland Empire, including the 3 million-square-foot Commerce Center in Ontario, California, which CapRock developed on behalf of Ivanhoé Cambridge. Since March 2020, the company started construction of an additional 2.8 million square feet and successfully received entitlements for over 3 million square feet in multiple projects across the Inland Empire. This brings CapRock’s total either recently constructed or …