Top Stories

Women’s Fashion Chain Avenue to Close All 222 Stores Across 33 States

by Alex Tostado August 15, 2019

ROCHELLE PARK, N.J. — Avenue Stores LLC will close all 222 of its Avenue stores across 33 states after failing to procure a buyer for the plus-size women’s clothing chain. It was not made immediately clear if the retailer will continue to operate its e-commerce platform. Philadelphia-based Versa Capital Management acquired Avenue Stores LLC in bankruptcy in 2012 when the retailer operated 433 stores. Avenue will hold liquidation sales in all of its stores, offering 30 to 50 percent off clothes, accessories and even store fixtures. Hilco Merchant Resources and Gordon Brothers have been hired to oversee the inventory sales. Footwear News reported that Rochelle Park, N.J.-based Avenue Stores LLC filed a Worker Adjustment and Retraining Notification (WARN) with the New Jersey Department of Labor in early August. WARN requires employers to provide 60 days’ notice in advance of mass layoffs. According to Coresight Research, there has already been 29 percent more store closures in 2019 than in all of 2018. The Avenue store closing announcement comes on the heels of Barneys New York filing for bankruptcy in early August. Additionally, in July, GNC and Charming Charlie announced they would close hundreds of stores. Versa Capital, a Philadelphia-based private equity …

August 15, 2019

New York Northeast Office Top Stories

WeWork Files for IPO, Reveals Revenue and Losses

by Kristin Harlow August 14, 2019

NEW YORK CITY — WeWork’s parent company, The We Co., has filed for its initial public offering. The coworking giant has not yet provided details on the number of shares it will offer or the expected pricing. We’s public filing would enable the company to debut as early as September. We has been valued as high as $47 billion in the private markets, according to The Wall Street Journal. We’s total revenue increased $771.6 million in the first six months of 2019 to $1.5 billion, primarily driven by an increase in membership and service revenue, according to the company’s filing with the Securities and Exchange Commission. On the flip side, We posted a net loss of $689.7 million for the first six months of the year. Total revenue in 2018 was $1.8 billion, but total losses were $1.6 billion. In the filing, We stated that average revenue per WeWork membership has experienced a decline, citing continued expansion into new global markets with different pricing structures and discounts to encourage longer contract terms. In 2010, WeWork opened its first location at 154 Grand St. in New York City. In the early years, WeWork members consisted of mostly freelancers, start-ups and small …

August 14, 2019

Acquisitions Colorado Multifamily New York Northeast Top Stories Western

UDR, MetLife to Swap Stakes in Joint Venture Multifamily Portfolio Valued at $1.8B

by John Nelson August 13, 2019

DENVER AND NEW YORK CITY — UDR Inc. (NYSE: UDR), a multifamily REIT based in Denver, has struck an agreement with its joint venture partner MetLife Investment Management to swap their interests in a national multifamily portfolio in a deal valued at nearly $1.8 billion. As part of the agreement, UDR will buy out MetLife’s stake in 10 apartment communities, one property under construction and four development land sites that are collectively valued at $1.1 billion. The 10 properties total 3,321 units and include Strata in San Diego; Crescent Falls Church in Falls Church, Va.; Charles River Landing, Lodge at Ames Pond and Lenox Farms in metro Boston; Towson Promenade in Towson, Md.; and the 1,513-unit, four-property Vitruvian Park campus in Addison, Texas. The assets have an average age of eight years and 95.7 percent occupancy at the time of this announcement. “The acquired communities are primarily located in markets targeted for expansion, are immediately accretive to our earnings, have operational upside and improve the diversification of our portfolio,” says Tom Toomey, chairman and CEO of UDR. Also as part of the agreement, MetLife Investment Management will purchase UDR’s stake in five apartment communities valued at a combined $645 million. …

August 13, 2019

Loans Multifamily New York Northeast Top Stories

Hunt Provides $192.2M in Acquisition, Rehabilitation Financing for Brooklyn Apartment Portfolio

by Taylor Williams August 12, 2019

NEW YORK CITY — Hunt Real Estate Capital has provided a $192.2 million financing package for the acquisition and rehabilitation of a 1,321-unit affordable housing portfolio located in Brooklyn. The borrower was a joint venture between Acacia Network, Hunt affiliate and multifamily developer Pennrose and the New York City Housing Authority. The borrower will use portions of the proceeds to retire existing construction debt and fund property renovations and upgrades. The portfolio comprises seven properties, all of which were built in the 1980s in garden-style formats in Brooklyn’s Bushwick neighborhood. Floor plans across the portfolio include studio, one-, two-, three- and four-bedroom units. Twenty percent of the units are reserved for renters earning 50 percent or less of the area median income (AMI), and the remainder are restricted to households earning 80 percent or less of AMI. The renovations will include repairs and upgrades to landscaping, building exteriors, building interiors, lobbies, unit interiors and common areas. Rehabilitation efforts will also replace or upgrade the properties’ utility and elevator systems. The transaction consists of two loans, one of which totals $118.5 million and the other totals $73.7 million. Both loans carry 30-year terms, fixed interest rates and 40-year amortization schedules. Both loans …

August 12, 2019

Company News Restaurant Retail Top Stories

Pizza Hut to Close 500 Stores Over Next 24 Months

by Taylor Williams August 9, 2019

LOUISVILLE, KY. — Pizza Hut will close as many as 500 dine-in stores over the next 24 months as part of a broader strategy to bolster its delivery and carryout services, company executives said during the second-quarter earnings call. Food Business News first reported the announcement. Pizza Hut, which is owned by Louisville, Ky.-based YUM! Brands (NYSE: YUM), operates about 7,500 locations across the United States and 18,000 worldwide. In the United States, roughly 6,100 of the company’s locations are dine-in restaurants. The remaining locations are express units, which feature limited menus and minimal to no in-store seating to prioritize delivery and takeout services. All shuttered stores will be dine-in locations. “We plan to accelerate the transition of our Pizza Hut assets to a more modern delivery carryout and delivery asset base,” YUM! Brands CEO Greg Creed said on the call. “We are excited about collaborating with franchisees who have a growth mindset to accelerate the closure of underperforming dining stores and replacement with new delivery or fast-casual delivery assets.” YUM! Brands owns Pizza Hut and several other restaurant chains, including Kentucky Fried Chicken, Taco Bell and Wingstreet. Pizza Hut express units sometimes share building space with these concepts. All …

August 9, 2019

Acquisitions Florida Hospitality Southeast Top Stories

Joint Venture Expands Beachfront Footprint with Acquisition of Two Hotels in Miami Beach for $139.9M

by Alex Tostado August 8, 2019

MIAMI BEACH, FLA. — A joint venture between SHVO, Bilgili Group and Deutsche Finance Group (DFG) has acquired the Richmond Hotel, Richmond Apartments and South Seas Hotel for a total of $139.9 million. The companies purchased South Seas Hotel from Majestic Hotel Corp. for $52 million. Along with direct access to the beach, the hotel offers amenities such as a swimming pool, poolside café and bar, business center, complimentary breakfast and concierge service. South Seas is located at 1751 Collins Ave., directly next to Richmond Hotel. Included in the $87.9 million Richmond Hotel sale was Richmond Apartments, an 18-unit apartment complex located at 1757 James Ave., one block from the two hotels, and the apartment’s parking lot. The joint venture bought Richmond Hotel, which has been family owned and operated since 1941, from Patti and Allan Herbert. The hotel is located at 1757 Collins Ave., directly next door to The Raleigh, which the joint venture acquired in February for $103 million. Lotus Capital Partners arranged a $100 million acquisition loan on behalf of the buyers from California-based Acore Capital for the purchase of Richmond and South Seas. These purchases mark the fourth and fifth purchases between SHVO, Bilgili Group and DFG. The joint …

August 8, 2019

Acquisitions Development District of Columbia Mixed-Use Southeast Top Stories

Lowe Acquires Former School Site in Washington, D.C., Plans 500,000 SF Art Museum-Anchored Development

by Kristin Harlow August 7, 2019

WASHINGTON, D.C. — Lowe, a national real estate investor, developer and manager, has acquired the former Randall School site at 65 I St. SW in Washington, D.C. Lowe plans to redevelop the 2.7-acre site into a 500,000-square-foot mixed-use project featuring a contemporary art museum. Lowe had first come on as partner for the project in 2017 but is now assuming control of the development from TRSW, a partnership between Telesis Corp., a national affordable housing developer, and the Rubell family, long-standing collectors and patrons of the arts. Lowe intends for the project to create an arts and cultural anchor in the Southwest neighborhood. The designated Arts District will provide a second home for the Miami-based Rubell Family Collection, an internationally acclaimed contemporary art collection that draws visitors from around the world, according to Mark Rivers, executive vice president at Lowe. At the core of the project is the restoration and repositioning of the school’s three buildings, of which two will be transformed into an approximately 31,000-square-foot art museum housing the Rubell Family Collection. Entry to the museum will be free of charge to all residents of the District. The West Randall building will be reconfigured as an 18,000-square-foot creative office …

August 7, 2019

Company News New York Northeast Retail Top Stories

Barneys New York Files for Bankruptcy, Will Keep Some Stores Open

by John Nelson August 6, 2019

NEW YORK CITY — Luxury department store retailer Barneys New York has voluntarily filed for bankruptcy protection and has disclosed plans to close 15 of its 22 brick-and-mortar stores. The Chapter 11 filing in the U.S. Bankruptcy Court of the Southern District of New York indicated that Barneys had more than $100 million in assets and more than $100 million in debts, according to The Wall Street Journal. Barneys plans to keep five of its flagship locations open, including its famous Madison Avenue store. The retailer will also continue operating its downtown Manhattan, Beverly Hills, San Francisco and Boston stores. The company will also keep two Barneys Warehouse locations open in Woodbury, N.Y., and Livermore, Calif., as well as the Barneys.com and BarneysWarehouse.com websites. Barneys will close all other locations, including flagship stores in Chicago, Seattle, Las Vegas, Brooklyn, Philadelphia, Los Angeles and Santa Monica, Calif. This is the second high-end retail concept to file for bankruptcy this week, the other being luxury movie theater company IPIC Entertainment. Veteran retail consultant Jeff Green says that American shoppers are shying away from uber-luxury retailers like Barneys and IPIC, which saw its same-store sales drop 21.7 percent in first-quarter 2019 compared to …

August 6, 2019

Acquisitions Georgia Multifamily Southeast Top Stories

RSE Capital, Carter Multifamily Acquire Georgia Apartment Portfolio for $202.5M

by Taylor Williams August 5, 2019

GEORGIA — A joint venture between Washington, D.C.-based RSE Capital Partners and Tampa-based Carter Multifamily has acquired a portfolio of 11 apartment communities located across five cities in Georgia for $202.5 million. The seller was Savannah-based Kole Management. The new ownership will undertake a capital improvement program that will upgrade the properties’ unit interiors and amenity space. In announcing the value-add deal, the joint venture cited the strong job growth that is occurring throughout Georgia and the limited supply of quality workforce housing as the key driving forces behind the acquisition. The portfolio totals 1,966 units in the Class B and C spaces. Specifically, three of the properties totaling 438 units are in Savannah; three communities featuring 382 units are in Garden City; three assets comprising 716 units are in Macon; one property totaling 240 units is in Canton; and one community featuring 200 units is in Augusta. The Savannah properties were all built between 1969 and 1978 and feature amenities such as pools and playgrounds. Each of the Garden City communities was built in the late 1980s and offers amenities such as pools, playgrounds, sport courts and fitness centers. Garden City is located along the eastern coast near Savannah. …

August 5, 2019

Broward County Convention Center rendering

Civic Development Florida Hospitality Southeast Top Stories

Balfour Beatty to Build $1B Broward County Convention Center Expansion in Fort Lauderdale

by Jeff Shaw August 2, 2019

FORT LAUDERDALE, FLA. — General contractor Balfour Beatty has signed a $780 million agreement with developer Matthews Southwest, making Balfour Beatty the design-build lead for the over $1 billion expansion of the Broward County Convention Center in Fort Lauderdale. The project will add 525,000 square feet of meeting space to the complex, plus a 29-story, 800-room Omni Hotel. Located on Florida’s southeastern coast approximately 25 miles north of Miami, the completed convention center will total 1.2 million square feet. The expanded property will include 350,000 square feet of contiguous exhibition space, a 65,000-square-foot waterfront ballroom, modern technology, new dining concepts, enhanced water taxi access and a waterfront plaza with public access. The Omni Hotel will add 73,000 square feet of meeting and ballroom space; multiple restaurant options including a rooftop bar; an 11,000-square-foot, full-service spa and fitness center; and over 30,000 square feet of pool decks. The hotel will be positioned along the city’s famed Intracoastal Waterway with a scenic view of the Atlantic Ocean. Matthews Southwest has called on London-based firm Balfour Beatty for projects in the United States before. The company was hired by Matthews Southwest to build the Omni convention center hotel in Dallas and a residential …

August 2, 2019

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