The Houston Retail Outlook— How is the Houston Market Responding to the Pandemic? webinar, hosted by Shopping Center Business and Texas Real Estate Business, covers the impacts of COVID-19 and how retail experts are bringing creativity to challenging situations. Houston boasts a dynamic retail and restaurant scene that has been a requisite landing spot for new shopping, dining and entertainment users over the last few years. With a plethora of new mixed-use destinations in development or coming on line, can the market continue to absorb the new retail space despite pandemic-related restrictions and reduced occupancies? See a list of some topics covered below: What initiatives have retail landlords and operators taken to mitigate the disruption brought on by COVID-19? What is the outlook in terms of leasing for the Houston market over the next six months? What kinds of retail deals are capital sources targeting right now, and what is the Houston market seeing in terms of deal velocity and volume? How will broader expectations for the Houston economy impact the performance of the retail market in the coming months? Panelists: Jake Donaldson (moderator), Method Architecture Emily Durham, Waterman Steele Real Estate Advisors Lacee Jacobs, Midway David Luther, NewQuest Properties Jonathan Hicks, …
WASHINGTON, D.C. — Retail sales have been increasing month-over-month and year-over-year for every month since June, according to the National Retail Federation’s (NRF) Monthly Economic Review. Retail sales in October were up 1.9 percent over September, which beat expectations from economists surveyed by Dow Jones. Additionally, October retail sales were up 8.6 percent since January 2020, according to research from Harvard University’s Opportunity Insights Economic Tracker. NRF’s chief economist Jack Kleinhenz notes in the monthly report that the rebounding sales were a positive indicator for retailers that are hoping for a robust sales performance this holiday season. “Strong growth in retail sales during the last few months points to the resiliency of consumers even in this disruptive pandemic environment,” says Kleinhenz. The economist also pointed to additional stimulus money could help keep the U.S. economy on track. NRF’s report pointed to increasing retail sales stemming from an uptick in disposal personal income, which was up 5.4 percent year-over-year as of August, and a savings rate of 14.4 percent that has remained in double digits for six straight months. Clothes and accessories sales jumped by 11 percent, while sales of sporting goods, music and books grew 5.7 percent. Also in the …
SANTA MONICA, CALIF. — ValueRock Realty has purchased Mel’s Drive-In, an iconic restaurant building in Santa Monica, for $6.2 million. The name of the seller was not released. Situated on a 22,344-square-foot land parcel on Lincoln Boulevard, the 4,717-square-foot building offers on-site parking and is considered a historic landmark within the Santa Monica community. Restaurant and dental office tenants have occupied the property since 1959.
WILBRAHAM, MASS. — FIC Restaurants Inc., which operates the Friendly’s brand, has filed for Chapter 11 bankruptcy and entered in an agreement to sell all of its assets to Amici Partners Group LLC. Nearly all of Friendly’s 130 corporate-owned and franchised restaurant locations, known for burgers, sandwiches and ice cream, are expected to remain open subject to COVID-19 limitations. Friendly’s stated that it has sufficient cash on hand to continue operations, meet its obligations to employees, franchisees and vendors. Upon the sale closing, Amici expects to retain most employees at Friendly’s corporate-owned restaurant locations. Amici is an affiliate of BRIX Holdings, an owner-operator whose brands include Red Mango Yogurt Café Smoothie & Juice Bar, Smoothie Factory Juice Bar, RedBrick Pizza Kitchen Café and Souper Salad.
PHILADELPHIA — Pennsylvania Real Estate Investment Trust (PREIT) has filed for Chapter 11 bankruptcy as of Sunday, Nov. 1. PREIT (NYSE: PEI), which is based in Philadelphia, owns and operates 22.5 million square feet of retail space including 19 mall properties in New Jersey, Pennsylvania, Massachusetts, Maryland, Virginia, Michigan, North Carolina and South Carolina. PREIT has reached a Restructuring Support Agreement (RSA) with its bank lenders, under which an additional $150 million will be committed to recapitalize the business and extend its debt maturities. The announcement coincides with the Chapter 11 filing of Tennessee-based CBL & Associates (NYSE: CBL), which owns and manages a portfolio of 107 properties totaling 66.7 million square feet across 26 states, including 65 enclosed, outlet and open-air retail centers and eight properties managed for third parties. “Today’s announcement has no impact on our operations — our employees, tenants, vendors and the communities we serve — and we remain committed to continuing to deliver top-tier experiences and improving our portfolio,” says Joseph Coradino, CEO of PREIT. “With the overwhelming support of our lenders, we look forward to quickly emerging from this process as a financially stronger company.” DLA Piper LLP and Wachtell, Lipton, Rosen & Katz are …
ONTARIO, OHIO — Upland Real Estate Group Inc. has brokered the $1.6 million sale of a 3,662-square-foot property occupied by Arby’s in Ontario near Mansfield. The building is situated on an outparcel to Richland Mall. Keith Sturm, Deborah Vannelli and Amanda Leathers of Upland represented the undisclosed seller. An all-cash buyer purchased the asset and completed a 1031 exchange.
CANTON, MASS. — Shares of Dunkin’ Brands Group Inc. (NASDAQ: DNKN) rose by more than 15 percent yesterday as the Massachusetts-based coffee and breakfast chain moved forward with talks to be acquired by Atlanta-based Inspire Brands, the parent company of chains like Arby’s and Jimmy John’s. The New York Post reports that the deal, which would take Dunkin’ private is valued at $8.8 billion. Dunkin’s stock price closed at $89.80 per share on Friday, October 23 and peaked at $104.87 per share in yesterday’s trading before closing just below that mark. Dunkin’ opened at $101.69 per share today, up nearly 30 percent from a year ago. The New York Times reports that Inspire Brands has offered to purchase Dunkin’, which will release its latest earnings report on Thursday, at $106.50 per share.
WHITTIER, CALIF. — Buchanan Mortgage Holdings has provided a $25 million construction loan for the development of Whittier Retail Center, a family-oriented shopping center at the entrance of The Groves residential community in Whittier. The 16-acre retail site will feature a Stater Bros. Markets, In-N-Out Burger, Raising Cane’s Chicken Fingers, Chipotle Mexican Grill, EOS Fitness and a public food market.
LOS ANGELES — Primestor Development, along with Nadel Architecture + Planning as architect, has completed the development of Freedom Plaza, the retail component of the Jordan Downs mixed-use community in Los Angeles’ Watts neighborhood. Located at 9901 S. Alameda St., Freedom Plaza features 114,431 square feet of retail space for stores and restaurants, as well as landscaped promenades and community gathering spaces. Tenants at the plaza include Smart & Final Extra!, Blink Fitness, Nike, Ross Dress for Less, Starbucks Coffee and The Habit. The property also features an architectural fountain designed and constructed by OTL, based on a general concept by landscape architects Fong Hart Schneider-Partners. The water feature incorporates a public art piece titled “Instill,” which is composed of dark gray polished natural basalt columns with hidden lights. The art installation fulfills a 1% for Art Programs ordinance by the City of Los Angeles mandating that 1 percent of the cost of any public works capital-improvement project be set aside for an art component.
NEWPORT BEACH, CALIF. — Year-over-year revenue for Chipotle Mexican Grill (NYSE: CMG) increased 14.1 percent to $1.6 billion for third-quarter 2020. Digital sales soared 202.5 percent to $776.4 million, accounting for 48.8 percent of sales for the period. The company’s net income was $80.2 million. Despite the sales increase, the net income is a decrease from $98.6 million in third-quarter 2019 as expenses increased during the COVID-19 pandemic. In addition to increased revenue, the Newport Beach-based fast-casual chain opened 44 new restaurants and closed three locations during the third quarter, bringing the total restaurant count to 2,710. The company rolled out its “Chipotlane” drive thru at 26 of the 44 new restaurants. The chain also saw its restaurant-level operating margin dip to 19.5 percent, a decrease from 20.8 percent in third-quarter 2019. As of Sept. 30, Chipotle has $1.1 billion in cash, investments and restricted cash, and no debt, along with a $600 million untapped credit facility with which to continue to navigate impacts of the COVID-19 pandemic.