REAL ESTATE

Mid-America doubles a client’s investment in one year

BY Michael Fickes

Crest Hill, Ill. — Mid-America Real Estate Corp.’s Net Lease Investment Group recently brokered the sale of a two-tenant 88,000-sq.-ft. retail building leased to Big Lots and Home Owners Bargain Outlet in Crest Hill, Ill. A private investor in California purchased the property from a local Chicago area investor for $2.25 million.

Major retailers surrounding the property include Jewel/Osco, Ultra Foods, Food 4 Less and TJ Maxx.

A year ago, when Mid-America (www.midamericagrp.com) received the assignment to broker the sale of the property, the real estate was worth $1.85 million based on the combined income stream and existing lease expiration terms of three years.

Mid-America advised the owner to offer Big Lots a monetary incentive in exchange for a fresh 10-year lease. The owner invested less than $200,000 in a new storefront and received a seven-year lease extension in return. The maneuver boosted the property value by $400,000, returning the $200,000 investment principle plus an additional $200,000.

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News

Hibbett sees happy holiday ahead

BY CSA STAFF

Buoyed by its performance during Back to School season, Hibbett Sporting Goods sounded an optimistic tone regarding the holidays after reporting a surprisingly strong third quarter comp increase.

The operator of 904 stores in 31 states said its same store sales increased 4.8% and total sales increased 2.5% to $208 million during the quarter ended November 2.

“We delivered solid comparable store sales in the quarter driven by a strong Back to School (season) led by improved performance in footwear, apparel, and accessories,” said Jeff Rosenthal, Hibbett president and CEO. “Demand for our fall assortment has been positive as well, and we are well positioned going into the holiday season. We continue to be encouraged by the pace and performance of new store openings, and feel confident that our investments in the business will provide a solid foundation for future success.”

The company’s top line growth did not translate to profit growth, primarily due to a one week calendar shift which distorted results. Hibbett said net income declined 9% to $17.3 million, or 66 cents a share, from $19 million, or 71 cents a share. However, the calendar shift accounted for 11 cents of the earnings per share decline. Gross margins declined to 36.8% of sales from 37.2% of sales while expenses increased to 21.9% of sales from 20.7% of sales.

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REAL ESTATE

JLL brokers sale of Atlanta’s Powers Ferry Plaza

BY Michael Fickes

Atlanta — Jones Lang LaSalle has closed the sale of Powers Ferry Plaza on behalf of Equity One. An Atlanta-based private investor purchased the 86,401-sq.-ft. shopping center anchored by Micro Center.

The property is strategically located on approximately 10.7 acres along Powers Ferry Road near the intersection of Powers Ferry Road and Delk Road, a little more than 12 miles northwest of downtown Atlanta.

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