Company News

Data Center Merger: Digital Realty to Acquire DuPont Fabros in $7.6B Deal

by Taylor Williams June 12, 2017

SAN FRANCISCO AND WASHINGTON, D.C. — Data center REIT Digital Realty Trust Inc., (NYSE: DLR) has entered into an agreement to acquire competitor DuPont Fabros Technology Inc. (NYSE: DFT) in an all-stock merger with an enterprise value of $7.6 billion. The deal’s enterprise value includes $1.6 billion of assumed debt that is expected to be refinanced with a combination of investment-grade corporate bonds, among other securities. The merger is expected to close during the third or fourth quarter. Under the terms of the agreement, DuPont Fabros’ shareholders will receive 0.545 shares of Digital Realty stock for each share of DuPont Fabros stock. The merger is expected to generate as much as $18 million in overhead savings per year. “We are excited to execute two of the strategic objectives embodied in our corporate vision — diversifying our customer base and expanding our geographic presence,” says A. William Stein, CEO of San Francisco-based Digital Realty. “We believe this combination will enhance our ability to create significant long-term value for both sets of shareholders.” According to the company’s annual report, Digital Realty’s portfolio consists of 145 properties totaling roughly 23 million square feet across 33 global metropolitan areas. As of June 1, 2017, …

June 12, 2017

USC Lusk Center Names Two Successors to Chairman Ross

by Nellie Day June 1, 2017

LOS ANGELES — The University of Southern California’s (USC) Lusk Center for Real Estate has announced the retirement of longtime chairman Stan Ross and the appointment of his successors, Emile Haddad and Bill Witte. Ross chaired the Lusk Center advisory board for the past 18 years. He became chairman after retiring as vice chairman of E&Y Kenneth Leventhal Real Estate Group. Ross has enjoyed a career in real estate that spans more than 60 years. Haddad is chairman and CEO of FivePoint Holdings. He will serve as the new chair, while Witte, chairman and CEO of Related California, will act as the new vice chair. The longtime members of the Lusk Center’s advisory board assume their new leadership duties July 1. Haddad and Witte will work together to guide the Lusk Center’s programs, as well as its support for research and academics, while continuing in their current roles with their respective companies.

June 1, 2017

California Company News Retail Western

Gymboree Names New President, CEO

by Nellie Day May 23, 2017

SAN FRANCISCO — The Gymboree Corporation has appointed Daniel Griesemer as the company’s new president and chief executive officer. Griesemer joins Gymboree after a five-year tenure leading Tilly’s, an action sports-inspired teen and young adult apparel retailer where he served as president and CEO. Griesemer assumes his responsibilities from interim CEO Mark Weikel, who will continue his role as a member of the board of directors. In addition to his experience at Tilly’s, Griesemer previously served as president and CEO at Coldwater Creek, a women’s clothier, and held executive leadership positions at Gap Inc., GapKids and Gap Inc. International division. Griesemer began his career with Macy’s Stores. As of April 29, 2017, the The Gymboree Corporation operated 1,281 retail stores: 582 Gymboree stores, 172 Gymboree Outlet stores, 149 Janie and Jack shops and 378 Crazy 8 stores.

May 23, 2017

Company News Northeast Pennsylvania Retail

Rue21 Files Chapter 11 Bankruptcy

by Haisten Willis May 17, 2017

WARRENDALE, PA. — Teen apparel retailer Rue21 filed Chapter 11 bankruptcy on Monday, May 15 with plans to reorganize and restructure its assets and debts. In April, the company began to close approximately 400 underperforming stores of the 1,179 stores that it operates. The company stated Monday that it may evaluate further store closures as it continues to manage its real estate lease portfolio. The company expects to emerge from Chapter 11 in fall 2017 with a significantly deleveraged balance sheet. The company has obtained $125 million in debtor-in-possession financing, enabling it to continue day-to-day operations, including payment of employee wages, payment of vendors and honoring customer programs, such as gift cards. Kirkland & Ellis LLP is Rue21’s legal advisor, Rothschild Inc., as its investment banker and financial advisor and Berkeley Research Group as its restructuring advisor.

May 17, 2017

Company News Idaho Retail Western

Albertsons Names New President, COO

by Nellie Day April 21, 2017

BOISE, IDAHO — Albertsons Cos. has promoted its executive vice president and chief operating officer, Wayne Denningham, to president and chief operating officer. Bob Miller remains chairman and CEO, a role he has held since April 2015. Denningham will continue to lead store operations with added oversight of marketing and merchandising, supply chain, manufacturing and integration, all of which will continue under their current leadership. Denningham began his career with Albertsons in 1977 as a clerk and worked his way up in the organization. He eventually served as both executive vice president of marketing and merchandising and executive vice president of operations. Albertsons is one of the largest food and drug retailers in the United States, with stores in 35 states and the District of Columbia under 19 banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs.

April 21, 2017

Company News Indiana Midwest Retail

On Heels of Bankruptcy Filing, hhgregg to Liquidate Assets

by Kristin Harlow April 11, 2017

INDIANAPOLIS — Appliance, electronics and furniture retailer hhgregg Inc. is liquidating its assets. The United States Bankruptcy Court for the Southern District of Indiana approved the initiation of the liquidation process, which began April 8. As previously announced, Tiger Capital Group LLC and Great American Group LLC will conduct a sale of the merchandise and equipment located at the company’s retail stores and distribution centers. Headquartered in Indianapolis, hhgregg was unable to secure a buyer within the expedited timeline set by creditors after previously filing for Chapter 11 bankruptcy on March 6. The company expects to close all 220 stores by the end of May, resulting in about 5,000 layoffs across the country, according to The Indianapolis Star, the local newspaper. hhgregg has not disclosed a complete list of stores, but click here to see the previously announced store closings listed as part of the bankruptcy filing. Approximately 60 hhgregg stores are located in the Midwest.

April 11, 2017

Company News Kansas Midwest Retail Top Stories

Payless ShoeSource Files for Bankruptcy, Plans to Close 400 Stores

by Nellie Day April 5, 2017

TOPEKA, KAN. — Payless ShoeSource has filed for Chapter 11 bankruptcy and announced plans to immediately close nearly 400 underperforming stores. The company, which bills itself as the largest specialty family footwear retailer in the Western Hemisphere, currently operates approximately 4,400 stores in more than 30 countries. The shoes and accessory retailer was founded in 1956 in Topeka, Kan. “This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify,” says W. Paul Jones, the company’s CEO. “We will build a stronger Payless.” Payless has entered into a Plan Support Agreement (PSA) with its lenders to reduce its debt load by almost 50 percent. The plan will also allow Payless to lower its annual cash interest costs, access additional capital and provide a path to emergence from Chapter 11 with a sustainable capital structure. The agreement will also allow Payless to invest in areas that may provide further growth, including omnichannel expansion, product and inventory initiatives, and international expansion in Latin America and elsewhere. The company plans to optimize its store footprint through the immediate store closures, as well as managing its existing real estate lease portfolio. This may include modifying …

April 5, 2017

Company News Industrial Office Retail Texas

BH Properties Buys Former Golfsmith HQs in Austin Out of Bankruptcy for $20.5M

by Amy Works January 31, 2017

AUSTIN, TEXAS — Los Angeles-based BH Properties has acquired the former Golfsmith International Holdings Inc. headquarters facility in Austin out of Golfsmith’s bankruptcy liquidation process for $20.5 million. Situated on 40 acres, the four-building, 332,345-square-foot property features a 93,000-square-foot building, which housed retail and office space, and three manufacturing and distribution facilities totaling 239,000 square feet. BH Properties was represented in-house, while Michael Jerbich of A&G Realty Partners represented Golfsmith in the deal.

January 31, 2017

California Company News Retail Western

Banana Republic Brand President to Depart Gap Inc.

by Nellie Day January 30, 2017

SAN FRANCISCO — Andi Owen, global brand president of Banana Republic, will leave Gap Inc. in late February. While a search is underway for Banana Republic’s next president, Gap Inc. CEO Art Peck will directly oversee the brand. Since joining Gap Inc. in 1991, Owen has held a variety of leadership roles at the company, including executive vice president and general manager for Gap Global Outlet and senior vice president and general manager for Banana Republic Factory Stores. San Francisco-based Gap Inc. oversees the Gap, Banana Republic, Old Navy, Athleta and Intermix brands. Gap Inc. has approximately 3,300 company-operated stores, 450 franchise stores and e-commerce sites.

January 30, 2017

Company News Multifamily Seniors Housing Southeast Virginia

WM Dougherty Buys Memory Care Project in Virginia Out of Bankruptcy for $7.5M

by Katie Sloan September 26, 2016

WILLIAMSBURG, VA. — WM Dougherty & Co. LLC has acquired an unfinished memory care community in Williamsburg for $7.5 million. The Jacksonville, Fla.-based investment bank and brokerage firm will open the community as Berkeley Oaks. Solvere Senior Living, a New Jersey-based operator, will manage the property upon completion. New Dawn Assisted Living was developing the community before the project declared bankruptcy in late 2015. In addition to the purchase price, WM Dougherty plans to invest $2 million in the community. When completed, Berkeley Oaks will offer 48 memory care units divided into three 16-unit buildings that will operate as separate neighborhoods. Architectural firm Lantz-Boggio designed the project, which is scheduled to open in February 2017. Berkeley Oaks will be the fourth developer-operator partnership between Dougherty and Solvere.

September 26, 2016

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