ISSAQUAH, WASH. — Issaquah-based Costco Wholesale Corp. has acquired Innovel Solutions, a provider of third-party logistics solutions with nationwide capabilities, for $1 billion. Innovel was a subsidiary of Transform Holdco, which operates Sears and Kmart stores. The acquisition was funded with the company’s existing cash balances. Innovel provides last-mile delivery, complete installation and white glove capabilities for large and/or bulky products. Its network offers coverage to nearly 95 percent of the United States and Puerto Rico. Products served through Innovel include major appliances, furniture, mattresses, televisions, grills, patios, fitness equipment and wine cellars. Innovel employs over 1,500 people and operates 11 distribution and fulfillment center, as well as more than 100 final-mile, cross-dock centers with over 15 million square feet of warehouse space. The company also operates dedicated call centers. Costco has been a customer of Innovel since 2015, and under Costco’s ownership Innovel will continue to serve Sears and other existing third-party customers. “We have a great relationship with Innovel and share a philosophy of taking care of our members,” says Craig Jelinek, Costco’s CEO, “We believe the acquisition will allow us to grow our e-commerce sales of ‘big and bulky’ items at a faster rate.” Costco currently operates …
LEAWOOD, KAN. — AMC Theatres (NYSE: AMC) has closed all 630 AMC locations in the United States for at least six to 12 weeks, in compliance with local, state and federal directives, and as a precaution to help ensure the health and safety of moviegoers and theater staff amid the coronavirus pandemic. The company says it will continue to monitor the situation closely and remain flexible on reopening in accordance with the Centers for Disease Control and Prevention recommendations and governmental directives. More than a dozen states and major markets have mandated that movie theaters, bars and restaurants close as a result of the COVID-19 outbreak. The federal government has recommended that no public gatherings take place that are larger than 10 people. AMC customers are encouraged to utilize AMC Theatres on Demand, which enables them to rent or buy movies from a selection of more than 3,500 titles. Kansas-based AMC maintains approximately 1,000 theaters and 11,000 screens worldwide.
MILWAUKEE — Solidcore has leased a 2,540-square-foot retail space at the Dye House within Milwaukee’s Historic Third Ward neighborhood. Ned Purtell, John Davis and Hakan Hare of Founders 3 Real Estate Services represented the landlord, Singerman Real Estate. Solidcore is a fitness concept offering 50-minute workout classes featuring high-intensity, low-impact training. Dating back to 1922, the Dye House is listed on the National Register of Historic Places. It once housed the dyeing operation for Phoenix Knitting Co., but now features office, retail and residential space.
INDIANAPOLIS AND LOS ANGELES — Simon Property Group and Unibail-Rodamco-Westfield (URW) have announced they will temporarily close their respective shopping centers across the United States amid the worldwide COVID-19 outbreak. Simon (NYSE: SPG) closed all of its U.S. properties at 7 p.m. local time Wednesday. URW will close its properties starting today. URW, which is headquartered in Paris and has offices in Los Angeles and New York City, operates 47 properties in the U.S. Due to European governments implementing crowd bans, URW began shuttering centers in France, Spain, Poland, Austria, the Czech Republic and Slovakia on March 16. In a corresponding move, the company began actively reducing non-staff expenses and deferring non-essential capital expenditure. Unless instructed otherwise by local authorities, URW will reopen its properties March 29. URW says “essential” retailers will remain open. Essential stores are typically defined as grocery stores, pharmacies, convenient stores, etc. “We have not made this decision lightly and believe this is in the best interest of protecting our various stakeholders. We look forward to reopening these centers in the very near future,” says Jean-Marie Tritant, U.S. President of URW. “In the meantime, we are doing everything possible to make sure that ‘essential’ retail outlets …
In 2019, the Twin Cities net lease retail market experienced a historic year, benefitting significantly from aggressive western U.S. capital. The Twin Cities saw an unprecedented number of buyers from the western United States who were willing to pay a premium above local buyers for quality net leased real estate. There were 95 net lease transactions in the Twin Cities in 2019 that sold below a 7.5 percent cap rate, according to CoStar Group. Of those transactions, 33 percent were sold to buyers based in the West Coast. What’s more, of the net lease properties that sold below a 6.25 percent cap rate, nearly 50 percent were sold to buyers based in the western U.S. In comparison, in 2018, only 25 percent of the net leased properties below a 6.25 percent cap rate in the Twin Cities sold to buyers based in the western U.S. This trend helped average cap rates compress for both net lease multi-tenant pad/strip centers as well as single-tenant cap rates between 2018 and 2019. The average multi-tenant net lease cap rate in 2018 was 7.25 percent versus 7.1 percent in 2019. The average single-tenant cap rate in 2018 was 6.7 percent versus 6.6 percent in …
DALEVILLE, VA. — Cushman & Wakefield | Thalhimer has arranged the $8 million sale of Orchard Marketplace, a 46,552-square-foot, grocery-anchored shopping center in Daleville. Located at 50-110 Marketplace Center Way, about 12 miles north of downtown Roanoke, the property was fully leased at the time of sale to tenants including Food Lion and Carilion Health Systems. Eric Robison, Catharine Spangler and Jessica Johnson of Cushman & Wakefield | Thalhimer represented the sellers, Orchard Anchor LLC and New Orchard Marketplace LLC, in the transaction. Club Forest Guardian LLC acquired the property.
ATLANTIC CITY, N.J. — Eldorado Resorts has temporarily closed its 2,379-room Tropicana Atlantic City casino and hotel in New Jersey. In an effort to limit the spread of COVID-19, the disease caused by the coronavirus, the company is complying with an order from the governments of New Jersey, New York and Connecticut to temporarily close movie theaters, gyms and casinos in the Tri-State area. The property features 125,935 square feet of casino space, 20 restaurants, 18 bars and amenities including a fitness center, indoor and outdoor pools and full-service spa.
READING, PA. — The Boulder Group has negotiated the $1.6 million sale of a single-tenant retail property net-leased to Dunkin in Reading, located approximately 60 miles northwest of Philadelphia. The property is located at 1350 Carbon St. in close proximity to the 910,000-square-foot Berkshire Mall, as well as a Walmart Supercenter, Home Depot and Best Buy. Randy Blankstein and Jimmy Goodman of The Boulder Group represented the Pennsylvania-based seller in the transaction. The buyer was a private investor. Both parties requested anonymity.
MAPLEWOOD, MINN. — The Boulder Group has arranged the $3.3 million sale of a newly constructed retail property net leased to AT&T in Maplewood, just east of St. Paul. The 4,305-square-foot building is located at 3070 White Bear Ave. across from Maplewood Mall. Jimmy Goodman and Randy Blankstein of Boulder represented the seller, a Midwest-based developer. An individual investor purchased the asset. The tenant, New Cingular Wireless PCS, is a wholly owned subsidiary of AT&T Corp. New Cingular Wireless is the primary corporate entity for AT&T’s retail stores with over 2,200 locations worldwide.
GRAND RAPIDS, MICH. — Daniel Gracie Grand Rapids, a Brazilian Jiu Jitsu academy, has leased a 3,750-square-foot space at 131 Division Ave. in Grand Rapids. The academy will offer a variety of classes for all ages. Todd Leinberger, Mary Anne Wisinski-Rosely and Jason Makowski of NAI Wisinski of West Michigan represented the tenant in the lease transaction with the undisclosed landlord. Cody Hier and Miguel Diaz, both professional MMA fighters, are the co-owners of the studio.