REX Stores Portfolio Transaction (Retailer)
Summary
Acquisition Date April 2007
Location 27 States (concentrations in FL, NY, SC, TX)
Value-Add Opportunity Portfolio Transaction (Retailer)
Size 1 million sq. ft.
Total Project Cost $93.4 million
Opportunity
- 87 store portfolio acquisition from REX (NYSE: RSC)
- 40 stores leased back to REX, 37 vacant, 10 leased to 3rd party tenants
- Stand-alone boxes predominantly located within major retail concentrations, adjacent to Wal-Marts or outparcels to malls
- Acquired portfolio for $76 psf.; implied cap rate of approx. 11% on
50 leased locations - Coventry can terminate any/all of REXs remaining leases
Value Added
- Off market transaction - existing relationship with REX CEO
- Citigroup appraised the assets at $129 million (vs. $77 million cost)
- Coventry brought in Klaff as operator partner and Lubert-Adler
as capital partner