LOS ANGELES — CIM Group, a Los Angeles-based real estate and infrastructure owner, operator, lender and developer, has announced that its open-end core real estate fund has been added to the National Council of Real Estate Investment Fiduciaries’ (NCREIF) Open-End Diversified Core Equity Index (NFI-ODCE). The fund’s inclusion started during fourth-quarter 2020. Launched on Dec. 31, 1977, the NFI-ODCE is a capitalization-weighted, gross of fee, time-weighted return index. As of Dec. 31, 2020, the index consisted of 26 funds, totaling $209 billion of net real estate assets. According to NCREIF, the term diversified core equity style typically reflects lower risk investment strategies utilizing low leverage and generally represented by equity ownership position in stable U.S. operating properties diversified across regions and property types.
NEW YORK CITY — Knotel Inc., a New York City-based flexible workspace provider, has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware. Knotel concurrently has agreed to sell the business to an affiliate of commercial real estate services firm Newmark Group Inc. (Nasdaq: NMRK), which is providing Knotel with $20 million of debtor-in-possession (DIP) financing to help fund day-to-operations. The DIP financing, provided by a Newmark-backed entity known as Digiatech LLC, is subject to court approval. Founded in 2016, Knotel provides custom offices for company’s using an in-house team of architects, interior designers and workplace strategists. The total number of existing Knotel locations was not available, but Knotel has a presence in several global cities, including Amsterdam, Atlanta, Berlin, Boston, Dublin, London, Los Angeles, New York, Paris, San Francisco, Tokyo, Toronto and Washington, D.C. Amol Sarva, co-founder and CEO of Knotel, cites the COVID-19 pandemic as a black swan event for his firm, which was hampered by companies opting to work from home during the outbreak. “The pandemic created a uniquely challenging operating environment, with significant impacts on leasing velocity and the rate of renewals in key markets, particularly New York …
NEW YORK CITY — New York City-based mortgage banking firm Meridian Capital Group and global investment manager Barings have launched a new multifamily lending platform that will be headed by former Freddie Mac CEO David Brickman, who left the agency late last year. Under the terms of the agreement, the joint venture will acquire the assets and liabilities of Barings Multifamily Capital and operate that entity’s origination and servicing businesses for its portfolio of agency loans. The philosophy behind the new venture centers on leveraging the depth and reach of the platform of Meridian Capital, which in 2020 closed approximately $40 billion in loans via deals with more than 250 unique lenders. The newly created platform will be operated as a standalone business under its own name and branding, which will be announced prior to the transaction closing. Meridian will own a majority of the newly created platform, the day-to-day operations of which will be overseen by Brickman. “Our partnership with Barings will enable us to join forces with one of the world’s leading asset managers and reintroduce Meridian to the direct agency lending arena,” said Ralph Herzka, chairman and CEO of Meridian Capital. “The addition of David Brickman to our executive …
NEWARK, N.J. — The U.S. arm of beauty retailer L’Occitane en Provence has filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the District of New Jersey and announced plans to close several stores in an effort to optimize the company’s U.S. footprint. L’Occitane currently operates 166 stores nationally. At least 23 stores are being targeted for closure in the U.S. and the company is taking a closer look at its other leases in hopes of better positioning L’Occitane for success over the next few years, according to reports by the New York Business Journal. Stores are set to remain open through the restructuring process. L’Occitane is the latest regional mall mainstay to struggle under strain caused by the COVID-19 pandemic. The company was recently sued by Simon Property Group — one of the largest shopping mall operators in the U.S. — for more than $3.7 million in back rent, according to reports by Crain’s New York Business. While L’Occitane has seen year-over-year growth in online sales, the business continues to feel the impact of high rent obligations, which the company deems no longer tenable. “Today’s action is a pivotal step forward in achieving the full potential of …
STOCKHOLM AND CONSHOHOCKEN, PA. — EQT AB, a private equity firm based in Stockholm, has agreed to purchase Exeter Property Group, an industrial real estate owner and developer based in the Philadelphia suburb of Conshohocken. EQT plans to purchase Exeter using $800 million in EQT shares and nearly $1.1 billion in cash for a total acquisition price of nearly $1.9 billion, including the refinancing of Exeter’s existing $300 million in debt. Founded in 2006, Exeter has approximately $10 billion in assets under management. In addition to industrial properties, Exeter also owns life sciences and office space in the United States and Europe. Exeter has 37 offices in North America, Europe and Asia. EQT expects Exeter’s revenue in 2020 to total $135 million. Exeter’s recent acquisitions include Creekview Corporate Center in metro Dallas, a 193,000-square-foot industrial building in Illinois and a new distribution center in Pennsylvania totaling 1.2 million square feet. The company also recently developed a 673,920-square-foot speculative industrial building in the St. Louis suburb of Edwardsville, Ill. Upon completion of the transaction, Exeter will operate as EQT Exeter and will be part of the EQT Real Estate Assets division, which comprises EQT Infrastructure and EQT Real Estate. EQT Exeter …
LADERA RANCH, CALIF. — Money360, a Ladera Beach-based commercial real estate direct lender, has promoted Tom MacManus to president and chief executive office (CEO). Current CEO Evan Gentry will step back from day-to-day operations and transition responsibilities effective April 5, 2021. MacManus joined Money360 as president in October 2020 with more than 30 years of experience in commercial real estate, including serving as president of GMAC Commercial Mortgage and CEO of North American operations. In his current role, he is responsible for leading the company’s sales team, driving strategic growth and broadening its origination network. Since MacManus joined the company, Money360 has hired four new executives to its originations team and funded loan volume in December 2020 of over $110 million. Money360 expects to fund more than $1 billion in loans in 2021. “I look forward to expanding my role at Money360 and further accelerating our growth during this unique period of opportunity for bridge lending,” says MacManus. “As other private lenders and some traditional banks have pulled back from the market amid the pandemic, there is a significant opportunity for us to grow market share by meeting the robust pent-up demand for transitional capital.”
JACKSONVILLE, FLA. — Southeastern Grocers Inc., the Jacksonville-based parent company of grocery brands Winn-Dixie, BI-LO, Fresco y Mas and Harveys Supermarket, is moving forward with its initial public offering (IPO) that it filed in mid-October. Founded in 1924, Southeastern Grocers operates 638 grocery stores, pharmacies and liquor stores across Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina and South Carolina. According to Market Watch, the company has 36,000 employees and its expected listing date for its shares of common stock is next week under the symbol “SEGR” on the New York Stock Exchange (NYSE). Southeastern Grocers is launching its IPO for 8.9 million shares of its common stock to be sold at an anticipated price between $14 and $16 per share. BofA Securities and Goldman Sachs & Co. LLC are acting as joint lead book-running managers and as representatives of the underwriters for the IPO. Deutsche Bank Securities Inc., BMO Capital Markets and Wells Fargo Securities are acting as book-running managers for the IPO. Truist Securities is acting as co-manager for the offering.
HOUSTON — Apparel and accessories retailer Francesca’s has received approval from the U.S. Bankruptcy Court for the District of Delaware to enter into a sale agreement with TerraMar Capital and Tiger Capital Group. Under the new ownership, the Houston-based retailer will keep about 275 stores, or roughly half its total count, open for business and retain its current management team, according to The Wall Street Journal. Under the terms of the agreement, known as a stalking horse asset purchase agreement, the buyers have agreed to purchase substantially all of the Francesca’s assets for approximately $17 million in cash. Francesca’s declared bankruptcy in December, prompting reports of a buyout offer from TerraMar Capital; the retailer subsequently entered into a letter of intent with the Los Angeles-based investment firm. According to investopedia.com, a stalking horse bid is an initial bid on the assets of a bankrupt company that sets a minimum price threshold for subsequent bids.
PITTSBURGH — American Eagle Outfitters, Inc. (NYSE: AEO) has announced plans to close hundreds of its flagship American Eagle stores over the course of the next few years, while seeking to grow the company’s more successful lingerie and active-wear brand, Aerie, into a $2 billion business. The Pittsburgh-based company’s chief financial officer, Michael Mathias, announced plans to close 200 to 225 of the company’s 880 existing American Eagle locations over the next two to three years during a virtual investor meeting held Thursday, Jan. 21. “Our primary focus for the next few years with American Eagle will be to build on our large cashflow base by focusing on inventory efficiency, improving merchandise margins, managing expenses and closing stores to strengthen profit flow-through,” said Mathias. The company’s American Eagle banner anticipates roughly flat growth compared to 2019, with an expected revenue of approximately $3.5 billion. By contrast, Aerie revenue is anticipated to grow at a mid-20 percent compounded annual growth rate. The company hopes to open 60 to 75 brick-and-mortar Aerie locations each of the next several years, with Houston and Los Angeles listed as targeted growth markets. “Plans for the Aerie brand through 2023 include doubling revenue to $2 billion, …
FARMERS BRANCH, TEXAS — A partnership between North Texas-based M2G Ventures and Austin-based private equity firm Pennybacker Capital has purchased the 1.2 million-square-foot former distribution center of Tuesday Morning. The sale also included Tuesday Morning’s 105,000-square-foot headquarters office located at 6250 LBJ Freeway. The five-building industrial complex is situated on 46.7 acres in the northern Dallas metro of Farmers Branch. The Dallas-based retailer, which filed for Chapter 11 bankruptcy last May, had previously entered into an agreement to sell these assets to Miami-based Rialto Capital for $60 million. Stephen Williamson and Adam Graham of Lee & Associates represented the partnership in the transaction.