California Centers

SEP 2017

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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44 California Centers Magazine | September 2017 CORPORATE ACTIONS folio is fully occupied under a master lease with The Save Mart Companies (dba Save Mart, Lucky, Lucky Califor- nia and FoodMaxx). The freestanding and anchor position sites are located in the San Francisco Bay Area, Sacramen- to and the Central Valley. Peter Smy- lowski, Chris Gandy and Rob Bova, of HFF, worked on behalf of the borrow- er, RMP Properties, LLC, to place the 10-year, fixed-rate loan with a consor- tium of lenders. George Smith Partners has arranged $26.5 million in refinancing for Gersh- win Apartments, a mixed-use property on Hollywood Boulevard. The borrow- ers acquired the property in 2015. It has 163 apartments over 10,500 sq. ft. of ground-level retail space. Shahin Yaz- di, of George Smith Partners, secured the financing. NewMark Merrill Companies has re- ceived $5.2 million in refinancing for The Marketplace on Grove, a 270,000 sq. ft. center in Ontario which is an- chored by a Lowe's. William McPad- den, Jeffrey Packard, Tom Treacy, and Chris Bingham, with John Hancock, arranged the financing. Kostas Kavay- iotidis, with Pacific Southwest Realty, helped facilitate the transaction. NorthMarq Capital in San Diego ar- ranged $44.5 million in financing on behalf of Sudberry Properties for Mil- lenia Town Center in Chula Vista. The capital consisted of a bank construction loan and preferred equity from a life insurance company for whom North- Marq is a correspondent. NEW PRODUCTS & SERVICES Del Taco Restaurants Inc. is planning to add Queso Blanco to its menu – with no artificial preservatives, flavors or colors. The company anticipates the addition of queso will impact sales and traffic at its quick-service units in the fourth quarter of 2017. Del Taco has recently begun incorporating more premium ingredients to draw in more traffic and increase customers' check averages. Some examples of this have been the limited time offer of Carnitas, recent offering of dinner combination Platos and also incorporating premium breakfast items. Target is investing $7 billion into its business between now and 2020 to re- model 600 stores, beginning with 110 this year. It also will refresh its prod- uct offerings, introduce a dozen new brands, and upgrade its technology and supply chain. Lemonade has debuted its second gen- eration store prototype, which features a new ordering system, curated food plates and new décor. Located in Ven- ice, California, it is the first in a rollout of next generation stores the chain has planned in the coming years. Since its debut in West Hollywood in 2008, the company has been focused on further expansion and OPENINGS & CLOSINGS Owing to changing customer de- mands, Dunkin' Donuts has scaled back its plans for growth in the coming months, with plans to open 380 to 450 locations this year (instead of the 580+ it had previously projected opening). Sprint previously announced plans to open 43 new retail locations through- out Northern California by the end of 2017. Of the 43 planned, 13 had already opened as of mid-August, with anoth- er 30 in various stages of leasing and development. The service provider has been adding more network capacity in recent months in cities throughout the region as well, including underserved rural locations. In June (at which time it had over 300 stores opened in Southern California) Sprint announced it expects to add 78 new locations throughout Southern California by the end of 2017. Starbucks announced the intent to close all 379 of its Teavana retail stores over the coming year as a result of many of the units underperforming. The action follows a strategic review of the business and will be implemented through spring of 2018. Starbucks paid $620 million in cash for the primarily mall-based chain in 2012. Meineke Car Care Centers' franchisor Driven Brands Inc. has projected add- ing 50 Meineke locations this year and anticipates also reporting record sales for its fifth consecutive year. Celebrat- ing its 45 th year in business, the brand is fast approaching the 1,000 store mark in North America. Tires sales are pro- jected to comprise nearly 20 percent of the shops' revenue as of 2020, with oil changes and brake service being their primary business. While the company's basic franchise model has remained the same throughout its history, inves- tors have increasingly wanted to own multiple units in a given trade area or across several cities in a region, which contributes to its growing network of service centers. Wayback Burgers has added 10 new restaurant locations since January, bringing its total to 120 locations opened in 28 states, in addition to 35 sold internationally. See's Candies will have opened or re- located 10 shops in California by the close of 2017. The new stores add to the chain's 240+ shops in the U.S. The growth is in response to the needs of its loyal customers. Among the cities that have or will see new units are: San Jose, Castro Valley, ManhaĴan Beach, Paso Robles, Laguna Hills, Glendale and Calabasas. Shops in Escondido, Wind- sor and Pleasant Hill have already opened or been moved. Many of the newest sites are positioned in outdoor malls and strip centers. Jerome's Furniture has opened its first Dream Shop concept in San Diego (marking a return to the downtown region, where the company began in 1954). The 3,000 sq. ft. store is devoted to the maĴress sales category and will serve to re-establish the brand's pres- ence and commitment to the commu- nity. The Southern California retailer announced the plan in May, with the

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