North Logan Commons sold to Big V Group for $15.6M

Reopening of N.Y. movie theaters, malls, gyms postponed | Washington Prime to turn former retail space into distribution center | Cadre CEO: CRE will feel uneven effects from COVID-19

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June 25, 2020

News for shopping center industry professionals

Top Story

Reopening of N.Y. movie theaters, malls, gyms postponed

New York will hold off on reopening the movie theaters, malls and gyms that were closed to slow the spread of the coronavirus, Gov. Andrew Cuomo says. He says the reopenings are being postponed to give the State Department of Health more time to study indoor transmission of the virus.

Full Story: The Wall Street Journal (tiered subscription model) (6/24), New York Post (6/24)

Industry Tracker

Washington Prime to turn former retail space into distribution center

Washington Prime Group has signed a letter of intent to convert a former Sears store in Morgantown Mall in Morgantown, W.Va., into a distribution and logistics center for the West Virginia University Medicine network. This transaction is part of the company's broader Fulventory initiative, which was launched earlier this year.

Full Story: GlobeSt (free registration) (6/24)

Cadre CEO: CRE will feel uneven effects from COVID-19

The full impact of the coronavirus pandemic on the real estate market is not yet clear, but retail and hospitality will see substantial effects, says Ryan Williams, co-founder and CEO of Cadre. He says he is "more bullish" on the multifamily segment, and he notes that urban and suburban office properties could be affected in different ways.

Full Story: CNBC (6/24)

North Logan Commons sold to Big V Group for $15.6M

Big V Group has purchased a 175,969-square-foot Loganville, Ga., retail center for $15.6 million. North Logan Commons is leased to tenants including TJ Maxx, PetSmart, Dick's Sporting Goods and OfficeMax.

Full Story: Shopping Center Business (6/24)

JBG Smith providing land, investment for D.C. mixed-use project

EYA is developing a mixed-use project in Washington, D.C.'s Fort Totten neighborhood as part of a public-private partnership with the city. JBG Smith is participating in the deal by providing some of the land and serving as an equity investor.

Full Story: The Commercial Observer (New York City) (6/22)

New tenants coming to Sarasota, Fla., shopping center

The Mall at University Town Center in Sarasota, Fla., is welcoming new stores. Paper Source opened at the shopping center last week and Urban Outfitters, Carter's, Intimissimi and Build-A-Bear Workshop have announced their upcoming openings.

Full Story: The Herald-Tribune (Batesville, Ind.) (6/24)

Coronavirus drives $21B of CMBS loans to special servicing

About $21 billion of CMBS loans have been moved to special servicing since the middle of March -- more than double the total for all of 2019, according to Fitch Ratings. Hotel and retail properties have accounted for the most transfers to special servicing.

Full Story: GlobeSt (free registration) (6/23)

Michaels, Red Lobster face lawsuits over rent

Harden Ranch Plaza Associates and Salinas Shopping Center Associates are suing Red Lobster and Michaels for failing to pay rent in California during the shutdown. "Of the 80-plus tenants they have, the landlord has reached agreements with everyone other than the ones these suits have been filed against," attorney Anne Secker says.

Full Story: Monterey County Weekly (Seaside, Calif.) (6/25)

Retail News

Shoppers start to return to US, Canadian stores

Foot traffic at US and Canadian retailers has been on the rise for the past nine weeks as more stores have reopened, but visits are still only about half of what they were this time last year, according to Prodco Analytics. Stores have taken on different looks as they've reopened, with plexiglass shields, ramped up cleaning efforts and limits on the number of shoppers.

Full Story: BNN Bloomberg (Canada) (6/23)

H-E-B making employees' pay increases permanent

(H-E-B)

H.E. Butt Grocery, among the first retailers to boost pay for front-line workers during the pandemic, will now offer permanent pay increases. H-E-B did not provide a dollar amount for the pay raises, but said in a statement that the average employee will earn more than twice as much over the next year as they would have with the $2-per-hour increases instituted when the outbreak began.

Full Story: Winsight Grocery Business (6/23)

Could Gap help drive changes in retail leasing?

Gap is facing lawsuits by two mall operators for not paying rent during the time stores were forced to close due to the pandemic. The cases and others could spur changes in the way retail leases are negotiated in the future, when it comes to so-called force majeure clauses and government-mandated closures.

Full Story: Modern Retail (tiered subscription model) (6/24)