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Wolverine buys 96 CVS sites for $288 million

Wolverine Equities Co., the investment affiliate of The Staubach Co., bought 96 CVS drugstore properties last month for $288 million. The properties contain more than 1 million square feet of space and are located in Alabama; Connecticut; Georgia; Illinois; Indiana; Kentucky; Maryland; Michigan; New Jersey; New York; North Carolina; Ohio; Pennsylvania; Tennessee; Virginia; and Washington, D.C. The deal is structured so that Woonsocket, R.I.-based CVS will continue to control and operate the properties under long-term lease agreements with Dallas-based Staubach. Wolverine Equities specializes in refinancing single-tenant transactions.

Three major chains buy 35 Bradlee’s locations

Kohl’s Corp., in conjunction with Wal-Mart Stores and The Home Depot, have entered into an agreement to purchase the rights to occupy 35 former Bradlees locations in the Northeast. Kohl’s gains 15 leases — 12 in the Boston market and three in New Jersey; Wal-Mart will take 13; and The Home Depot will take seven, according to officials from the companies. Exact locations and financial details had not yet been released as of press time. Some locations were owned by Braintree, Mass.-based Bradlees, others by property owners.

Equity Office, Spieker complete merger

In what is being called the largest merger in real estate history, Equity Office Properties Trust, Chicago, and Spieker Properties, Menlo Park, Calif., are merging in a transaction valued at roughly $7.1 billion. The resulting company will command a portfolio of 616 office buildings containing more than 124 million square feet. Although the companies are calling the transaction a merger, Equity is actually purchasing Spieker, paying $4.6 billion in cash and stock and assuming $2.5 billion in Spieker debt. The company is issuing 118.6 million new Equity shares to Spieker shareholders.

Luxottica Group buys Sunglass Hut for $653M

Luxottica Group, Milan, Italy, which owns Lenscrafters, has agreed to buy Sunglass Hut International, Coral Gables, Fla., in a deal valued at $653 million. Luxottica will acquire all outstanding shares of Sunglass Hut for $11.50 each for a total of $462 million. It will also assume $191 million in debt. The companies said one positive aspect of the deal is that it provides an opportunity to upgrade Sunglass Hut’s prescription sunglasses capability, which right now is a limited part of its business.

RadioShack to open ‘stores’ at Blockbuster locations

Blockbuster Inc., Dallas, and RadioShack Corp., Fort Worth, Texas, have formed an alliance that will enable RadioShack to open stores within Blockbuster video stores. RadioShack expects to invest $300 million, which includes the costs for inventory, personnel and license fees paid to Blockbuster for the use of the space. Blockbuster will spend about $75 million on store alterations. The companies will launch the concept at approximately 130 Blockbuster stores in four markets — Las Vegas; Norfolk, Va.; Austin, Texas; and Tulsa, Okla. — starting this summer. A nationwide rollout will occur in 2002.

DEAL OF THE MONTH

Kimco Realty Corp.’s bid to buy the assets of bankrupt retailer Montgomery Ward was approved by the U.S. bankruptcy court in February, setting in motion the acquisition of 250 Ward stores, the company’s headquarters and designation rights. The New Hyde Park, N.Y.-based strip center REIT was joined in its bid by minority partners Simon Property Group, Indianapolis, which has 30 Wards stores in its portfolio, and Columbus, Ohio-based Schottenstein Stores. The venture purchased the rights for $60.5 million. The agreement calls for Chicago-based Montgomery Ward to collect a share of what the venture ultimately gains in disposing of the assets that may ultimately exceed $435.5 million, according to a Kimco estimate. In early March, Target Corp. bought the leasing rights to 35 former Montgomery Ward stores, with plans to convert 30 of them into Target stores, and The May Department Stores Co. bought the rights to 13 others.

 

 

 

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