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Weekly Perl: A Commercial Real Estate News Recap 4/26/2024

With $191B To Spend, Blackstone Thinks Real Estate Has Hit Bottom

 

Blackstone sees a recovery in the commercial real estate market coming and is acting accordingly, making major investments in the sector, most notably in multifamily rentals. But the shift in outlook about when interest rates might begin to come down has somewhat tempered spending of the firm’s $191B of dry powder. 

 


Iconic PCH diner, Patrick’s Roadhouse closed, campaign launched to save it


Legendary Pacific Coast Highway (PCH) diner, Patrick’s Roadhouse has closed and current owner, Anthony Fischler, is attempting to renegotiate a new, long-term lease with the building’s landlord. However, he needs $250,000 to cover back rent and building maintenance, which he hopes to raise through a GoFundMe campaign.



Pollo Campero expanding; to more than double U.S. footprint by 2028


Pollo Campero opened its 100th location, in Miami Gardens, Fla. on April 10 as part of a $190 million commitment by parent company CMI Foods to grow the brand. Founded in 1971 as a family-owned restaurant in Guatemala, Pollo Campero opened Its first U.S. location in 2002. CMI Foods is planning to open at least 25 new U.S. restaurants by the end of this year, and aiming to grow its U.S. footprint to a total of 250 locations by 2028. 



Report: FTC may block sale of Michael Kors parent to Coach parent Tapestry

 

The Federal Trade Commission (FTC) is getting ready to sue to block the proposed merger of Tapestry Inc. and Capri Holdings, reported the New York Times Deal/Book, citing people familiar with the matter. Tapestry, whose portfolio includes Coach, Kate Spade and Stuart Weitzman, entered into an agreement in August 2023 to acquire Capri Holdings, which is made up of Michael Kors, Versace and Jimmy Choo in a deal with an enterprise value of  approximately $8.5 billion. 



Express files Chapter 11, plans to close over 100 stores


Apparel retailer Express filed for Chapter 11 bankruptcy protection on Monday and plans to close 95 Express stores and all of its UpWest locations, the company said. The retailer said in bankruptcy court documents filed in Delaware that its assets and liabilities ranged from $1 billion to $10 billion. Its top five creditors are collectively owed nearly $70 million. 



Why Dollar General is winning with store count


Dollar General reached a milestone in February with the opening of its 20,000th store in southeastern Texas. And the retailer wants to keep growing. During an earnings call in March, Dollar General said it expects to complete 2,385 real estate-related projects this year. That includes opening 800 more new stores, remodeling 1,500 locations, and relocating 85 stores. 



Jack in the Box to open 15 news outlets in Michigan and Florida


The Michigan agreement will introduce the brand to the southwest and southcentral regions of the state. The new locations are planned across the city of Kalamazoo and in Calhoun and Kent counties. Each will feature Jack in the Box's CRAVED [cultural, relevant, authentic, visible, easy and distinctive] design with modern aesthetics and vibrant signage. 



Hy-Vee to acquire Strack & Van Til Food Market


Hy-Vee is expanding its presence in Indiana through a new acquisition. The Iowa-based retailer has announced that it is in the process of acquiring the Strack & Van Til Food Market grocery chain (also known as Indiana Grocery Group, LLC). The acquisition will add 22 stores in Northwest Indiana to Hy-Vee’s more than 550 retail business units across eight states, which include grocery stores, drugstores, pharmacies, restaurants and convenience stores. 



Dollar Tree poised to gain most as 99 Cents Only disappears


The relatively small fleet of stores run by 99 Cents Only Stores was a major factor in its downfall, due to the importance of high volume and economies of scale in value-oriented retail, Global Data Managing Director Neil Saunders told Retail Dive earlier this year. The discounter runs about 370 locations across Texas, California, Nevada and Arizona.



Convenience Store Giant 7-Eleven Closes $1 Billion Deal, Adds 204 US Stores

 

Convenience store giant 7-Eleven has completed a $1 billion deal with rival Sunoco that adds more than 200 stores to its U.S. real estate portfolio. The 204 stores, located in West Texas, New Mexico and Oklahoma, joins 7-Eleven's portfolio of more than 13,000 stores in the United States and Canada. With the closing of the acquisition, 7-Eleven now owns all Stripes- and Laredo Taco Co.-branded stores in the United States, according to a statement from 7-Eleven.



REPORT: Red Lobster Mulls Bankruptcy To Renegotiate Leases, Cut Labor Costs



Law firm King & Spalding has advised Red Lobster to think over filing for bankruptcy as the seafood titan looks to cut bait on some long-term contracts and reassess a chunk of its leases, Bloomberg reports. A bankruptcy filing would allow the chain to continue operations as it works on a plan to reduce its debt. The company hasn't made a final decision, sources told the outlet. Red Lobster has had cash flow issues stemming from burdensome leases and hefty labor costs, among a host of other problems.  



Sky Zone plots more expansion — here's where


Sky Zone is expanding its footprint as it eyes its 300th location milestone.The indoor trampoline park chain announced today it will be opening five new locations, with sites in Oregon, Texas and three more in California by the end of the year. The leases follow a slate of upcoming new parks including Boynton Beach, Fla., Mountlake Terrace, Wa. and Lincoln Park, Ill. as the chain moves towards 300 parks nationwide. 





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