WASHINGTON, D.C. — The American Hotel & Lodging Association (AHLA) has released what it called a “Roadmap to Recovery” for the hotel sector in the United States. In the document, AHLA notes that the April jobs report issued by the U.S. Bureau of Labor Statistics (BLS) says the hotel industry was hit the hardest of any sector tracked, losing 7.7 million jobs. The AHLA wrote a letter on behalf of its members to the U.S. Congress urging it to prioritize hotel workers and small businesses during the next stimulus package and to provide immediate assistance in four areas: help hotels retain and rehire employees by extending the Paycheck Protection Program, (PPP) offering employees direct tuition assistance or tax credits and expanding the Employee Retention Credit; protect employees and guests through tax credits for cleaning equipment and personal protective equipment (PPE); keep hotel doors open by providing relief for hotel commercial mortgages and increasing the size and flexibility of PPP loans; and incentivize Americans to travel again when it’s safe with a new, temporary travel tax credit and restoring the entertainment business expense deduction. “The hospitality industry is in a fight for survival,” says Chip Rogers, president and CEO of Washington, D.C.-based …
FORT WORTH, TEXAS — Pier 1 Imports Inc. has filed a motion in U.S. Bankruptcy Court to begin the process of closing all of its remaining stores and liquidating its assets, including its intellectual property and e-commerce business, the Fort Worth-based home goods retailer said on Tuesday. Pier 1 closed about 450 stores in January and filed for Chapter 11 bankruptcy in mid-February prior to the outbreak of COVID-19. However, CEO Robert Riesbeck said in the statement that the pandemic had amplified the company’s struggles to restructure debt and secure investment that would keep the business afloat. Pier 1 intends to initiate store closing efforts and liquidation sales once stores can reopen, in compliance with COVID-19 guidelines from local government and health officials. Pier 1 was founded in 1962 and operated about 1,300 stores at the height of its expansion in 2006.
BENTONVILLE, ARK. AND ATLANTA — Retailers Walmart and The Home Depot have reported increased sales during their respective first quarters. Bentonville-based Walmart, which operates on a fiscal year calendar running from Feb. 1 to Jan. 31, reported a spike of 74 percent in its e-commerce department, and an overall growth of 10 percent. Walmart’s total revenue reached $136.4 billion, which was 8.6 percent higher than first-quarter 2019. The uptick from e-commerce was mostly due to grocery pick-up and delivery services. Additionally, overall sales for Sam’s Club was up 12 percent and e-commerce demand for the Walmart-owned brand jumped 40 percent. The Home Depot, which is based in Atlanta, reported sales reached $28.3 billion, which was 7.1 percent higher than its first-quarter 2019. The Home Depot’s fiscal year ends Feb. 2. Despite the increased sales, the company’s revenue dipped by $300 million from first-quarter 2019 due to expanded benefits for its employees. Some of the benefits include extra time off for hourly employees, more still for associates 65 years of age and older, doubled overtimes rate, weekly bonuses for hourly employees and extended dependent care benefits and waived related co-pays.
WASHINGTON, D.C. — Vogel Realty has voluntarily implemented plans to install new heating and air conditioning systems designed to minimize airborne viruses and bacteria at Chelsea Gardens in Washington, D.C. The 105-year-old mixed-use building has been closed since D.C. Mayor Muriel Bowser announced stay-at-home orders for the District. Vogel Realty also plans to install handwashing stations and anti-microbial surfaces in the building before it can reopen on Saturday, May 30. The new HVAC systems will limit airflow between workspaces, bring more fresh air into units and neutralize viruses and bacteria. Chelsea Gardens was originally built as an office building in 1905 and was renovated 20 years ago to include retail and residential space.
PLANO, TEXAS — Renovo Financial, a Chicago-based private equity lender, has expanded into the Texas market with the opening of a new office in metro Dallas. The firm primarily focuses on providing financial solutions to borrowers that are targeting ground-up or rehabilitation construction projects. Jon Shipley, a real estate professional who previously worked for a regional private lender in Texas, will lead the firm’s new office as managing director. The new office is located at 5700 Tennyson Parkway in Plano.
ELK GROVE, CALIF. — Seattle-based Amazon will open a 111,500-square-foot distribution center at 9501 Union Parkway in Elk Grove, approximately 15 miles southeast of Sacramento. Currently under construction, the $21.3 million project is slated to open later this year. Irvine, Calif.-based Panattoni is developing the facility with Sacramento-based Alston Construction serving as general contractor. Sacramento-based Fite Development Co. sold the 17-acre industrial site to Panattoni in December and construction for the 111,500-square-foot distribution center commenced in January.
PLANO, TEXAS — J.C. Penney Co. (NYSE: JCP) has filed for Chapter 11 bankruptcy protection in a bid to strengthen its finances through an extensive debt restructuring. The company filed on the evening of Friday, May 15 in the U.S. Bankruptcy Court for the Southern District of Texas, located in Corpus Christi. The Plano-based retailer has secured $900 million in debtor-in-possession financing from its existing first-lien lenders that is expected to knock several billion dollars off its total debt load. J.C. Penney, a company with a 118-year operating history, said that it would disclose in the coming weeks the number and locations of which stores would be closing. Currently, due to the coronavirus pandemic, about 40 of J.C. Penney’s approximately 850 U.S. stores are open, with another dozen or so offering curbside pickup only. In mid-March, the retailer began furloughing workers at its supply chain and distribution centers in response to the outbreak of COVID-19. Furloughs of store associates and corporate staff followed two weeks later. “While we had been working in parallel on options to strengthen our balance sheet and extend our financial runway, the closure of our stores due to the pandemic necessitated a more fulsome review to …
WASHINGTON, D.C. — CoStar Group Inc. (NASDAQ: CSGP) has agreed to purchase Ten-X for $190 million. The all-cash deal is expected to close in the third quarter of this year. Irvine, Calif.-based Ten-X was launched in 2009 with the goal of providing a digital platform to complete commercial real estate transactions during the Great Recession. Since its founding, nearly $24 billion worth of commercial real estate transactions have been completed on the site. Companies such as Fannie Mae, Bank of America, JP Morgan Chase, Blackstone, Starwood, BlackRock, Capital One, MetLife, LNR, UBS and PNC have used the website to complete transactions. CoStar hopes the acquisition will position the combined company as a major player in the distressed commercial property market that COVID-19 is expected to leave in its wake. “We believe that the volume of distressed properties coming to market will surge and that this combined platform will support the market’s recovery,” says CoStar CEO Andrew Florance regarding the acquisition. Echoing Florance’s sentiment, Ten-X CEO Steve Jacobs says, “Just like CoStar Group, we are focused on driving volume and efficiency and have devoted ourselves to addressing the massive, untapped demand for digital commercial real estate solutions. We see significant demand …
WASHINGTON, D.C. — In the midst of the COVID-19 pandemic, Peterson Cos. has unveiled its plans for welcoming back tenants and customers, once permitted to do so. Peterson owns and operates open-air, mixed-use and power center properties. The company will implement the plan across several of its properties, including at National Harbor, Downtown Silver Spring, Rio in Gaithersburg, Fairfax Corner and Fair Lakes. Virginia Gov. Ralph Northam says he wants to slowly begin reopening retail businesses in the state, but he will allow northern Virginia to move at its own pace given the elevated number of COVID-19 cases in the region. Maryland Gov. Larry Hogan allowed the reopenings of parks and public spaces last week, but has not yet released guidelines on retail businesses. Washington, D.C. Mayor Muriel Bowser also released guidelines for residents to participate in outdoor activities but not retail-specific guidelines. Some of the new operations that the shopping centers will implement include hand sanitizing stations located throughout centers, especially in high-traffic, high-touch areas such as elevator lobbies, breezeways, restrooms, outdoor plazas and gathering areas; social distancing signage will remind customers and employees to stay six feet apart; curbside pickup areas will remain throughout the properties and will …
BEND, Ore. — Sunshine Retirement Living, a Bend-based seniors housing operator with 32 communities in 16 states, now offers FDA-approved “Respira-ID” testing for COVID-19 at all its properties. Residents and employees that are exhibiting symptoms will now all be tested, as well as any new residents moving in regardless of symptoms. Produced by Vikor Scientific, Respira-ID tests for over 40 pathogens known to cause respiratory illness including COVID-19. The manufacturer will provide in-depth virtual training to the community nursing staff, which will administer the tests and oversee the shipment of samples for analysis within 24 hours.