Apparel seller Syms Corp. and Vornado Realty Trust won the bankruptcy court auction for off-price retailer Filene’s Basement this week. Syms and Vornado agreed to pay $62.4 million in cash for the chain.
Filene’s Basement operates 25 stores throughout U.S., including prime locations in the heart of Union Square and Chelsea neighborhoods in Manhattan. The chain filed for bankruptcy in May of this year, reportedly because of liquidity concerns. The Syms/Vornado bid comes in the wake of a $67 million bid from K&G Acquisition Corp., an affiliate of Men’s Wearhouse, which was rejected last week by the bankruptcy court judge.
Vornado might have been moved to take part in the bid because of its Downtown Crossing mixed-use redevelopment project in Boston. Filene’s Basement, which has occupied the historic location for 99 years, was scheduled to anchor the 300,000-square-foot retail portion of the development, but temporarily closed the store in 2007 because of construction. Up until January, Vornado and its partner Gale International had reportedly been paying Filene’s $500,000 a month for the store closure. The Downtown Crossing development, originally scheduled to be completed in 2010, is currently on hold.
Vornado, a diversified REIT, already owns a 32.7 percent interest in toy retailer Toys “R” Us.
Other Notable Deals
Cushman & Wakefield, Inc. negotiated the sale of the Marketplace at Rockaway, a 241,000-square-foot shopping center in Rockaway, N.J., to Friendwell Group of Cos. for $29 million. The buyer assumed an existing seven-year loan on the property. The center is anchored by Wal-Mart. Other tenants include Bed, Bath & Beyond and DSW Shoe Warehouse. Cushman & Wakefield represented the seller, an undisclosed institutional client, and procured the buyer…. Wilson Family Living Trust sold Rancho San Diego Town & Country Pad Building, a 10,260-square-foot one-story strip center in El Cajon, Calif., to Fury & Jamacha LLC for $3.3 million. The purchase price translates into $321.64 per square foot. Tenants at the property include Jamba Juice and Soul Cycle. Capital Real Estate Investments, Inc. represented both parties in the transaction…. Colliers International negotiated the sale of an 18,404-square-foot retail property in Los Angeles to a private investor for $2.95 million. At the time of escrow, the center was 5 percent vacant. Existing tenants included a laundromat, a funeral parlor and an income tax accountant…. Upland Real Estate Group, Inc. negotiated the sale of a triple net leased Arby’s restaurant in Northfield, Minn. to a private investor for $1.75 million. The transaction featured a cap rate of 7.75 percent. Upland also helped sell an IHOP ground lease in Oklahoma City to a 1031 investor for $785,184. The transaction closed at a cap rate of 6.50 percent…. Vista Courthouse Racquetball Club sold a 2,343-square-foot, vacant single tenant drive-thru location in Vista, Calif. to ABAL, LLC for $925,000. The price translates into $394.79 per square foot. Capital Real Estate Investments, Inc. represented both parties in the transaction…. The Silver Group negotiated the sale of a 1,875-square-foot Pizza Hut property in Brady, Texas in a sale-leaseback transaction for $444,444. The property carries a 15-year, triple net lease.