Retail

What Are the Prospects for an Amazon Merger With Target? Analysts Weigh In

by Jeff Shaw January 4, 2018

When Gene Munster, managing partner of Minneapolis-based venture capital firm Loup Ventures, predicted that e-commerce giant Amazon (NASDAQ: AMZN) would buy department store chain Target (NYSE: TGT) this year, he knew such a declaration would make waves. In a New Year’s Day post on the Loup Ventures website titled “8 Tech Predictions for 2018,” Munster admitted it was his “boldest prediction.” “Seeing the value of the combination is easy. Amazon believes the future of retail is a mix of mostly online and some offline,” wrote Munster. “Target is the ideal offline partner for Amazon for two reasons: shared demographics and a manageable-but-comprehensive store count.” Business websites and magazines were quick to respond with skepticism, authoring headlines such as “Stop The Insanity Amazon Will Not Be Buying Target” (TheStreet), “Amazon Buying Target Isn’t as Likely as One Tech Analyst Seems to Think” (Adweek) and “No, Amazon Isn’t Buying Target in 2018” (Forbes). Garrick Brown, vice president of retail research for the Americas with Cushman & Wakefield, says “the rumor’s been floating around for a while” that Amazon is looking to buy Target. He estimates the odds of the deal happening at between 25 percent and 33 percent. Jeff Green, president and …

January 4, 2018

Market Reports Midwest Midwest Market Reports Missouri Retail

Mixed-Use Projects Breathe New Life Into Kansas City Retail Market

by Kristin Harlow January 4, 2018

The overall Kansas City retail market remains very healthy and active. As retailers continue to navigate through e-commerce challenges, developers continue to get creative with the redevelopment of existing centers, adding mixed-use components and consolidation of big box vacancies. Restaurants and hospitality seem to be catalysts in helping to kick-start these redevelopments from the retail side. Over the past year, retail spending in Kansas City has continued to increase, but there remains a limited amount of speculative construction in the market. Therefore, the vacancy rate has dropped from 6.2 percent in 2016 to 5.7 percent as of the third quarter of 2017. The average rental rate has increased from $12.85 to $13.05 per square foot as of the third quarter. Solid job creation from major employers like Cerner and Garmin has helped the unemployment rate of 3.7 percent stay below the national average of 4.1 percent. The restaurant sector is in the process of evolving just as the retail sector is. We are seeing a lot of the major chains slowly shuttering locations where the larger footprint is no longer viable. These properties are getting backfilled fairly quickly by retailers and smaller local restaurant groups. Retail investors have stayed active. …

January 4, 2018

Midwest Minnesota Retail

ARA Acquires 403,219 SF Retail Center in Eagan, Minnesota

by Kristin Harlow January 3, 2018

EAGAN, MINN. — American Realty Advisors (ARA) has acquired Central Park Commons in Eagan. The sales price was $126.3 million, according to the Minneapolis Business Journal. The 403,219-square-foot retail center is currently 97 percent occupied by tenants including Hy-Vee, HomeGoods, Marshalls, Hobby Lobby, Ulta and Petco. The newly constructed property, located at 3333 Pilot Knob Road, also includes medical office space. Bob Mahoney of CBRE represented the seller, a joint venture between CSM Corp. and John Johannson.

January 3, 2018

Loans Midwest Ohio Retail

Dougherty Provides $2.7M Refinancing for Shopping Mall in Elyria, Ohio

by Kristin Harlow January 3, 2018

ELYRIA, OHIO — Dougherty Funding LLC has provided a $2.7 million loan for the refinancing of Midway Mall in Elyria, about 30 miles southwest of Cleveland. The retail center encompasses 585,606 square feet of gross leasable area. The mall is approximately 80 percent occupied by 75 tenants, and is comprised of a mix of national, regional and local tenants. Elyria Realty LLC, Midway CH LLC and Midway Nassim LLC were the borrowers. Dougherty served as lead lender and is servicing the loan.

January 3, 2018

Michigan Midwest Retail

BlackBird East to Open 2,744 SF Retail Store in Grand Rapids, Michigan

by Kristin Harlow January 3, 2018

GRAND RAPIDS, MICH. — BlackBird East will open a retail store in the Gas Light Village district of Grand Rapids. The men and women’s clothing store will occupy 2,744 square feet at 2166 Wealthy St. Renovations are currently being made to transform the space from a gym to the retail shop. BlackBird East anticipates opening by early March 2018. Bill Tyson of NAI Wisinski of West Michigan represented the landlord in the lease transaction. Dave Kwekel of Dave Kwekel Development LLC represented the tenant.

January 3, 2018

Office Retail Texas

Gaedeke Group Inks Four Office, Retail Leases in Uptown Dallas

by John Nelson January 3, 2018

DALLAS — Gaedeke Group has signed four tenants to leases at three of its office towers in Uptown Dallas. The transactions include Bain & Co. expanding its footprint at 17Seventeen McKinney by 15,122 square feet; Native International Realty leasing 7,000 square feet of office space and Sallio Itallio leasing 5,216 square feet of dining space at One McKinney Plaza; and Priority Management Services leasing 6,780 square feet of office space at Regency Plaza. Elliott Prieur and Allison Johnston represented Gaedeke internally in all four transactions. The tenant representation in all four deals include Charlie Morris of Avison Young representing Bain & Co., Duke Biggers of Swearingen Realty Group representing Native International, Kimberly Rote of Allie Beth Allman & Associates representing Priority Management and John Evans and Emilie Gioia of John T. Evans Co. representing Sallio Itallio. Dallas-based Gaedeke Group’s portfolio spans 3.4 million square feet of Class A office buildings in Arizona, Florida, Tennessee, Texas and Washington, D.C.

January 3, 2018

Civic Mixed-Use New York Northeast Retail

TerraCRG Arranges $53M Sale of 165,000 SF Mixed-Use Property in Brooklyn

by Amy Works January 2, 2018

NEW YORK CITY — TerraCRG has brokered the sale of 1501 Pitkin Avenue, a 165,000-square-foot mixed-use building in Brooklyn. POKO Partners sold the property to an undisclosed buyer for $53 million. Built in 1929, the former movie theater has been redeveloped into a mixed-use property featuring retail and educational space. The building features 12,371 square feet of retail space occupied by Pizza Hut, Subway and Dollar Tree, and a 152,404-square-foot charter school that serves 1,000 students. Ofer Cohen, Dan Marks, Matt Cosentino, Fred Bijou and Eric Satanovsky of TerraCRG brokered the deal.

January 2, 2018

New York Northeast Retail

Forest City Realty Trust Converts Ownership of 10 Retail Centers in Metro New York City

by Amy Works January 2, 2018

NEW YORK CITY — Forest City Realty Trust has completed the conversion of its common ownership interest to preferred interest in 10 specialty retail centers in the New York City metro area. The closing covers 10 of the 13 centers that are part of a joint venture between Forest City and Madison International Realty. Final closings on each of the individual centers are expected to occur as Forest City secures replacement assets into which to redeploy its preferred interest. The properties included in this round of closings are Shops at Gun Hill Road (Waring), Shops at Gun Hill Road (Ely) and Castle Center in the Bronx; Harlem Center in Manhattan; The Heights, Atlantic Terminal Mall and Atlantic Center in Brooklyn; Forest Avenue and Shops at Richmond Avenue in Staten Island; and Columbia Park Center in North Bergen, N.J. Closings on the conversions on the remaining two centers — Shops at Northern Boulevard and Queens Place — are expected by the end of the first quarter of 2018. The last center in the joint venture, a retail/entertainment complex on 42nd Street, is expected to transact at a later date upon resolution of the ground lease dispute with the city of New …

January 2, 2018

Illinois Midwest Retail

Marcus & Millichap Arranges $4.5M Sale of Retail Property in New Lenox, Illinois

by Kristin Harlow January 2, 2018

NEW LENOX, ILL. — Marcus & Millichap has arranged the sale of Calistoga Plaza in New Lenox, about 40 miles southwest of Chicago, for $4.5 million. The 36,839-square-foot retail property is located at 2001-2131 Calistoga Drive. Tenants include Honeycuts, Grapple Games, Italian Fiesta Pizzeria, Arrowhead Ales, Badda Bings, Cedar Way Veterinary Clinic and Tuckers Doggy Delights. All of the tenants are currently operating under net leases. Sean R. Sharko, Austin Weisenbeck and Joseph Sigal of Marcus & Millichap marketed the property on behalf of the seller, a fund manager. Brian Parmacek, also of Marcus & Millichap, secured and represented the buyer, a limited liability company.

January 2, 2018

Retail Texas

Mattress Firm to Close 200 Stores Over Next 18 Months

by John Nelson January 2, 2018

HOUSTON — Mattress Firm has announced plans to close 200 underperforming stores over the next 18 months. The retailer currently operates approximately 3,400 stores across the United States. Steinhoff International Holdings N.V., the parent company of the Houston-based retailer, made the announcement at a Dec. 19 lenders’ meeting. The locations to be shuttered have not yet been made public. The company said it will invest $200 million this year to continue restructuring, which includes reorganizing sales operations, upgrading internal leadership positions and removing leftover products from Tempur-Sealy International Inc., which cancelled its contracts with Mattress Firm in 2017. In addition to eliminating stores, the company announced it will increase its private labels, boost online presence and improve customer service, in an effort to reach its revenue goals. Mattress Firm currently generates $3.3 billion in revenue annually, and is aiming to reach more than $4 billion over the next five years. Additionally, Mattress Firm recently entered into a revolving credit facility for up to $225 million with Barclays for working capital needs and other general corporate purposes.

January 2, 2018

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