TORONTO — Slate Retail REIT has reported during its second quarter earnings call that it experienced the best quarter of leasing since its founding in 2014. The Toronto-based company, which owns and operates 46 grocery-anchored shopping centers in the Southeastern United States, reports that it completed 464,326 square feet of lease renewals and 54,365 square feet of new leasing at its 70 total locations. The 518,691 square feet total is a 60 percent jump over second-quarter 2019. The REIT’s portfolio occupancy rate dropped 0.6 percent in the three months ending June 30 to 92.2 percent. Slate also reported that 62 percent of its tenant portfolio is deemed “essential” during the pandemic. These tenants include grocery stores, medical services and financial institutions. Slate was able to collect 89 percent of contractual rent for the second quarter. The company collected 91 percent of rent checks in July. The REIT expects to substantially collect outstanding billings through immediate cash collection or deferral programs. Furthermore, pending approval from the Toronto Stock Exchange (TSX), the company will rebrand to Slate Grocery REIT.
CHICAGO — McDonald’s Corp. has reported a 30 percent decrease in its consolidated revenue for the second quarter that ended June 30 due to coronavirus lockdowns. The global fast-food chain reported second-quarter net income of $483.8 million, compared with $1.5 billion for the same period a year ago. Chicago-based McDonald’s says it spent more than $200 million on marketing efforts to accelerate recovery from coronavirus losses, which contributed to the drop in net income. In the United States, 99 percent of McDonald’s restaurants were open as of June 30. About 2,000 dining rooms reopened with reduced seating capacity following temporary closures as a result of the COVID-19 pandemic. Chris Kempczinski, president and CEO, says that a strong drive-thru presence and investments in delivery and digital platforms have served the company well through this time.
OHIO, WISCONSIN, INDIANA AND MISSOURI — Gorjian Acquisitions has sold eight retail and mixed-use properties totaling more than 500,000 square feet for $25 million. The portfolio includes the following Midwest properties: Saint Clairsville Plaza in Saint Clairsville, Ohio; Bradley Square in Milwaukee; Cabool Center in Cabool, Mo.; a single-tenant Dunkin’ property in Gary, Ind.; and Lafayette Center in Indianapolis. The portfolio also includes a mixed-use building in Brooklyn, N.Y.; a single-tenant Family Dollar property in Danville, Va.; and Oglethorpe Plaza in Albany, Ga. Gorjian Acquisitions, based in Great Neck, N.Y., is led by Joel J. Gorjian. The privately held commercial real estate investment and management firm holds an ownership interest in 75 properties nationwide. Buyer information was not disclosed.
CHICAGO — Northwestern Cutlery has signed a 5,000-square-foot retail lease at 7138 W. Higgins Ave. in the Norwood Park neighborhood of Chicago. The kitchen supply store joins tenants such as Walter Lily Flowers, Made Men barber shop, Athletico Physical Therapy and Mather’s. Simeon Spirrison and George Spirrison of Adelphia Properties represented the undisclosed landlord in the lease transaction.
DENVER — ATE Ventures has completed the sale of a flex property located at 3819 Quentin St. in Denver. An undisclosed buyer acquired the building as an investment asset for $1.4 million. A local medical marijuana dispensary and cannabis grow operation occupies the 8,000-square-foot facility, which is situated on a half-acre lot. Greg Knott of Unique Properties/TNC Worldwide represented the seller, while Brian Basham of Basham Commercial represented the buyer in the deal.
DALLAS — A partnership between Texas-based Triten Real Estate Partners and Catlyn Capital will develop Work/Shop, a 216,500-square-foot office and retail project in the Prestonwood neighborhood of Dallas. The project will consist of two office buildings totaling 135,000 square feet and 81,500 square feet of ground-level retail space fronting Belt Line Road. The office and retail components will be connected by an outdoor plaza and green space totaling 30,000 square feet. O’Brien Architects is the project architect, and Venture Commercial Real Estate and Holt Lunsford Commercial will handle leasing for the retail and office portions of the project, respectively. Funding is in place, and the development team is in the process of securing various permits.
NEWNAN, GA. — Retail Value Inc. (RVI) has sold a Lowe’s Home Improvement store in Newnan for $15.6 million to an undisclosed buyer. The property is situated at 955 Bullsboro Drive, 35 miles southwest of downtown Atlanta. Lowe’s shadow anchors Newnan Crossing, which RVI sold to Halpern Enterprises for $11.6 million in January. Tenants at Newnan Crossing include Hobby Lobby, GNC, American Deli, Metro by T-Mobile, Sally Beauty and Edible Arrangements.
HOUSTON — NAI Partners has negotiated a 7,613-square-foot retail lease for Sally Beauty Holdings Inc. at Cypress Landing Shopping Center, located at 3040 FM 1960 E. in North Houston. According to LoopNet Inc., the property was built on 29.1 acres in 1980. Patrick Keegan and Jason Gaines of NAI Partners represented the landlord in the lease negotiations. The representative of the tenant was not disclosed.
SUGAR LAND, TEXAS — Marcus & Millichap has brokered the sale of a 1,875-square-foot retail property in the southwestern Houston suburb of Sugar Land that is net-leased to Starbucks Coffee. Justin Miller and Davis Hansen of Marcus & Millichap represented the seller, an out-of-state private investor, in the transaction. The duo also procured the locally based buyer. Both parties requested anonymity.
(Panelists, clockwise from top left) Adam Tiktin, Tiktin Real Estate Investment Services; Rod Castan, Courtelis Company; Lyle Stern, Koniver Stern Group; Philip Rosen, Becker (moderator); Duane Stiller, Woolbright Development. Last week, Shopping Center Business and Southeast Real Estate Business hosted “South Florida Retail Outlook: What is the Impact of COVID-19 on South Florida’s Retail Sector?” Listen as a panel of retail experts discusses their gameplans: working with tenants and their employees as the industry seeks to adapt. Hear about attitudes towards loans, rent reductions, property value, next steps and more. See a list of some topics covered and their timestamps below: (07:00): How are restaurants and experiential tenants faring? (09:29) Adapting for the challenges of COVID-19 (17:28) South Florida retail rent trends over the next 180 days? (24:32) What can owners do today to position themselves to succeed? (36:00) When might we start to see real loan defaults and real distressed assets? (42:55) Lessons learned from 2007-2008 financial crisis (53:56) Decisions made in the pre-COVID-19 world that have carried over well into our current environment Hear how South Florida retail professionals are approaching industry challenges and evolving to meet the needs of retailers. Panelists: Philip Rosen, Becker (moderator) Adam Tiktin, …