Jonesboro, Ark. Hobby Lobby has inked a deal for an early renewal and 10,000-sq.-ft. lease expansion at Bernard Court Shopping Center in Jonesboro, Ark. According to national property owner Stonemar Properties, the 62,000-sq.-ft. space is part of a vacant Goody’s Family Clothing location.
“We are pleased that Hobby Lobby will maintain and increase their presence at Bernard Court,” said Jonathan Gould, CEO of Stonemar. “Our other anchor tenant, Shoe Carnival, recently exercised a five-year option on 12,000 sq. ft., which further shows this is a desirable location despite the tough economic climate.”
According to the terms of the Hobby Lobby transaction, the crafts store agreed to extend its original 18-year lease, due to expire in 2011, by an additional 13 years to 2024 with an additional five-year option. In consideration for the early renewal, extension and expansion, both parties agreed on a substantial per-year rent increase beginning in 2009. The total deal value was not disclosed.
Hobby Lobby will expand into an additional 10,000 sq. ft. of space recently vacated by Goody’s Family Clothing, which had been in bankruptcy and began liquidating in January. Hobby Lobby has agreed to renovate the space at its own expense.
Hobby Lobby’s expansion still leaves vacant about 25,000 sq. ft. of former Goody’s space. Stonemar has begun marketing the vacant space and has received preliminary interest from several nationally recognized retailers, Gould said.