Mind-Body Studio takes 7th Manhattan location
New York — An ~exhale MINDBODYSPA has leased 3,027-sq.-ft. location in Manhattan’s Flatiron District, where Flatiron and Chelsea meet. It is a strong retail neighborhood with national fashion and specialty retailers along Fifth Avenue including Anthropologie, J.Crew, Club Monaco, kate spade, Nike, Intermix and Sephora. There are larger format retailers in the area, too: Bed Bath & Beyond, The Container Store, Sports Authority, Staples, Men’s Wearhouse, Trader Joe’s and Marshalls along Sixth Avenue.
The ground floor will house the spa’s seventh Manhattan location. RKF represented ~exhale in the transaction, which involved a sublease with the existing tenant and a lease extension from the landlord, Fifth Partners.
DDR sell all of its Brazil holdings for $344 miilion
Beachwood, Ohio — DDR has signed a letter of intent to sell its 50% ownership interest in Sonae Sierra Brazil BV Sarl, a Luxembourg company, to Alexander Otto and his affiliates for $343.6 million. DDR’s interest in SSB BV Sarl represents the company’s entire investment in Brazil. The gross proceeds of $346.6 million include $283 million from the negotiated price of R$26.00 per share of SSB, a 67% premium to the closing price on the IBOVESPA as of March 7, and DDR’s stake in Parque Dom Pedro, valued at $60.7 million. Plans call for the sale to close within the next 30 days.
The SSB portfolio consists of ten regional malls totaling 4.6 million sq. ft. During DDR’s period of investment, four of the ten malls were developed, three of which were recently opened. DDR’s original investment in 2006 was $147.6 million, with an additional $52.6 million funded from 2007 through 2009. At the expected sale price, DDR’s IRR on its investment in Brazil is in excess of 10%. As a result of the sale, DDR’[s pro rata share of NOI from consolidated assets will increase from 89% to 93%.
DDR intents to use the proceeds from the sale for general corporate purposes, including reinvestment in prime shopping center acquisitions and redevelopments in major U.S. markets.
As a result of the timing difference between this transaction and the reinvestment of the proceeds, as well as an acceleration of domestic disposition plans, DDR is lowering 2014 operating FFO guidance from $1.17 to $1.21 per diluted share, to $1.14 to $1.18 per diluted share, representing year-over-year growth of 5% at the midpoint.
Bed Bath & Beyond says weather affected Q4
Union, N.J. — Bed Bath & Beyond Inc. has provided preliminary information on its fiscal fourth quarter 2013, including the impact of adverse weather conditions during the period. The company’s same-store sales for the fiscal fourth quarter increased by approximately 1.7% as compared with its previous model of an increase of approximately 2% to 4%.
For the fiscal quarter, the estimated resulting impact due to the disruptive weather on same-store sales was in the range of 2% to 2.5%, and the estimated impact on net earnings per diluted share for the quarter was approximately $.06 to $.07. The impact of the disruptive weather included 464 times a store was closed for a full day and 1,923 times that a store was closed for a partial day. Although it is early in the process of its financial close, Bed Bath & Beyond now estimates net earnings per diluted share of approximately $1.57 to $1.61 for the quarter as compared with its previous model of $1.60 to $1.67.
"Despite the weather related challenges, we are pleased with our quarter,” said CEO Steven H. Temares. “Absent the disruptive weather, we believe we would have been comfortably within our sales and net earnings per share ranges of our model. Our store associates continue to perform admirably and we thank each of them for their extraordinary effort. We continue to make excellent progress on our omni-channel initiatives and stay on course for the execution of our long term strategic plan."