California Centers

SEP 2018

California Centers Magazine serves retailers, developers, shopping center owners, investment sales brokers and tenant representation firms throughout the state of California.

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CORPORATE ACTIONS 42 California Centers Magazine | September 2018 EARNINGS & FINANCE Tropical Smoothie Café has secured up to $20 million in debt capital to fuel its continued expansion across the U.S. The company is working with ApplePie Capital to offer franchisees access to funds to help it reach a long-term goal of having 1,000 locations opened by 2020. Real Mex Restaurants, parent of Chevys, Acapulco and El Torito, has filed for Chapter 11 bankruptcy protection. The filing comes six years after the company emerged from a previous bankruptcy. Real Mex has indicated the most recent filing will allow current co-owner Z Capital Group to take total ownership of the brand through an asset sale. Terms of the deal have yet to be disclosed. Real Mex's 78 restaurants operating under seven brands, will remain open and operate as usual during the bankruptcy process. Papa John's International Inc. is cutting royalties and other fees charged to franchisees in the U.S. and Canada in response to a period of disappointing quarterly earnings. The assistance program will continue through 2018, with additional funds being provided to support new marketing and re-imaging initiatives. John Schnatter resigned from the Board of Directors in July following media coverage indicating he had used inappropriate language in a previous company conference call. Schnatter has also been succeeded as CEO by Steve Ritchie. Friendly Franchisees, one of Carl's Jr.'s largest franchise operators, with more than 70 locations throughout the Los Angeles and San Francisco markets, has closed a deal with CIT Group's Franchise Finance team for a $25 million loan to support restaurant remodeling, debt refinance and other corporate purposes. Friendly Franchisee Founder and President, Harshad Dharod, is a longtime franchisee, with more than 34 years of experience in the industry. Newmark has placed $28 million in long term, fixed-rate non-recourse financing for NorthPointe Shopping Center in Modesto on behalf of the unnamed borrower. Mitchell Zeemont, of Newmark, arranged the 15-year, fixed-rate term loan with a 30-year amortization schedule. Genworth Life Insurance Co. provided the capital. The Wendy's Co. has sold its 12.3 percent ownership stake in Inspire Brands Inc., the parent to Arby's and Buffalo Wild Wings, for $450 million. Remarked Chairman Nelson Peltz, "The sale of our stake in Inspire Brands is a great return on investment for our shareholders." It also allows the burger brand to invest in future growth. MetLife Investment Management and Northwestern Mutual have provided a $450 million fixed-rate loan for Broadway Plaza in Walnut Creek. The 12-year loan was provided on behalf of the property owner, a joint venture between The Macerich Co. and Northwestern Mutual. National Stores Inc., parent of Fallas and Factory 2-U, filed Chapter 11 bankruptcy protection in August. The family-owned company will begin by closing approximately 74 of its 344 stores in the U.S. and Puerto Rico. Oprah Winfrey has made an equity investment in True Food Kitchen and will fill a seat on its board. While terms of the deal were not disclosed, Winfrey will consult with the brand's leadership to help advance the company's business and marketing objectives. Brookstone Co. Inc. has filed for Chapter 11 bankruptcy and will be closing its remaining 100-plus mall- based store locations. This marks the second such filing the company has made in the past five years. The company has cited a challenging retail environment as a factor in its downfall. The brand's airport locations and e-commerce and wholesale divisions remain viable, as the company seeks a buyer in the coming months. Brookstone has secured a $30 million loan to finance operations during the sale process. Irvine-based Pokeworks is partnering with Toridoll Holdings Corporation of Tokyo, Japan, to grow the chain. Pokeworks founders will continue to run the company, with significant financial backing coming fromToridoll. Pokeworks has more than 120 locations under development or opened throughout North America. A Pine Tree, LLC affiliate has acquired an indirect interest and taken over the property management of Village Walk, an urban retail center in Tarzana. The 149,000 sq. ft. center is anchored by Whole Foods, TJ Maxx and LA Fitness. The property has been owned by an affiliate of Pearlmark since 2003. Pine Tree, LLC is based in Northbrook, Illinois. A&G Realty Partners was due to hold an auction for 123 Toys R Us and Babies R Us store locations in 29 states. The two-day auction was set for mid-August, and would involve 10 locations in California, 18 in Ohio and other states. KeyBank Real Estate Capital has provided a $26.8 million CMBS first mortgage loan for Enos Ranch retail shopping center in Santa Maria. The 119,760 sq. ft. center is anchored by Dick's Sporting Goods. The center owner will use the funding to refinance existing debt. Brinker International Inc., the parent of Chili's Grill and Bar and Maggiano's Little Italy, has agreed to sell and lease back as many as 98 units, according to federal filings. The planned deal involves Brinker real estate subsidiaries Sun Equity Funding LLC and Four Corners Property Trust Inc., according to an August filing with the SEC. The two deals total approximately $314.3 million. NAME CHANGES & RELOCATIONS Chipotle will relocate its headquarters to Newport Beach from Denver. Due to occur in the fourth quarter of 2018,

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