The 1950s saw the birth of the shopping mall across the nation, yet the era of destination retail stores, especially clothing stores, has been on a downward slide for some time. This trend away from the malls began with the introduction of the internet, bringing convenience and in many cases, lower prices to the consumer. A big wave of store closings that began in 2016 is expected to continue in 2017. However, the common thread is these stores are mostly inline or in shopping malls. What’s interesting is that only a small percent of these stores affect free standing single-tenant …
The recent announcement that Fred’s would purchase upwards of 600 locations from Walgreens/Rite Aid to help ensure approval of their merger, highlights an issue facing some owners of these properties. What happens if my property is slated to be closed?
Despite the 600 locations that Fred’s is going to take over, there will still likely be many other Walgreens and Rite Aid locations that will be in close proximity to each other, that one or the other will be shuttered. Landlords of these properties will of course, still be paid their contractual rents; however, the value of the property will …
With the holiday season in full swing, the country will be waiting to see if the Fed will increase interest rates during their meeting on December 14th. Following Trump’s presidential election victory, we have seen a surge in S&P, Dow Jones, and Nasdaq. The Dollar has also advanced and we’ve seen a rise in bond yields. Meanwhile, cap rates have continued to compress this year, with some STNL properties trading at record low cap rates. Clearly, that trend can’t hold on for much longer, a tune we’ve all been singing for a while.
WASHINGTON, DC—1132 19th St., NW, the erstwhile home of 70 years of Famous Luigi’s, has traded or $6.4 million, or $1,168 per square foot. The property was listed by Calkain Urban Investment Advisors’ Rick Fernandez and Andrew Fallon earlier this year in March, at an asking price of $6.5 million.
The property is a single-use, multi-level restaurant that was leased last year to Bonfire, a new restaurant by Provision 14’s Social Restaurant Group. Bonfire opened several weeks ago.
The 15-year lease has structured rent increases of 3% a year.