Pier 1 Imports (NYSE:PIR) won court approval for a speedy sale process a day after the home furnishings chain plunged into bankruptcy.

Judge Kevin Huennekens also signed off on a request that allows Pier 1 to obtain $256M in bankruptcy financing from its term-loan lenders to enable the retailer to keep operating pending a possible sale of the business.

The company also has secured $256 million in debtor-in-possession financing to provide sufficient liquidity until the sales process has been completed.

In addition, Pier 1 Imports is in discussion with potential buyers which could result in the company selecting a stalking horse bidder for the upcoming court-supervised auction. Qualified bids are expected to be submitted by March 23 and the auction to take place on March 31. Court confirmation is currently expected by April 23.

The company has filed for bankruptcy protection to quickly implement the recently announced almost 50% reduction of its store base which includes pulling out of Canada entirely.

Looking at the most recent 10-Q, equityholders are unlikely to receive any form of recovery as sales proceeds will likely be a insufficient to cover creditor claims, particularly after giving effect to the $256 million in debtor-in-possession financing now sitting at the top of the capital structure.

Court documents indicate seven Arizona store closures.

On Feb. 29, Pier 1 will close the following stores:

• Happy Valley Towne Center – 2501 W. Happy Valley Pkwy., Phoenix
• Village Fair North shopping center near Paradise Valley Mall – 12657 N. Tatum Blvd., Phoenix

On March 31, these stores are set to close:

• Chandler Fiesta shopping center – 2600 W. Chandler Blvd., Chandler
• Lake Pleasant Towne Center – 10092 W. Happy Valley Road, Peoria
• Camelback Colonnade – 1743 E. Camelback Road, Phoenix
• Ahwatukee Foothills Towne Center – 4717 E. Ray Road, Phoenix
• 5919 E. Broadway Blvd., Tucson

 

Tucson, Arizona – Certain subsidiaries of CIM Real Estate Finance Trust, Inc. (“CMFT”), a publicly registered non-listed real estate investment trust (“REIT”), completed the sale of 411 single-tenant properties for $1.035 billion, representing the first tranche of the transaction with Realty Income Corporation (“Realty Income,” NYSE: O) that was previously announced in September. The sale of the remaining properties is expected to close in late 2019 and/or early 2020, subject to customary closing conditions. The total transaction with Realty Income is valued at approximately $1.25 billion and includes the assumption by Realty Income of existing mortgage debt totaling approximately $131 million.

Tucson properties included as part of the $1.25 billion portfolio were ten properties of the 411 single tenant investment properties that sold before year end. The Tucson properties were valued at approximately $18.77 million and included:

1. PetSmart at 7727 E Broadway Blvd, Tucson for $1,822,504(RED COMP #7363)
2.  Family Dollar at 9776 South Nogales Hwy, Tucson for $1,804,596 (RED COMP #7362)
3. Giant Gas Station at 6225 W Ajo Hwy, Tucson for $843,656 (RED COMP #7358)
4. Giant Gas Station at 3902 E Speedway Bvd, Tucson for $1,261,187 (RED COMP #7359)
5. Giant Gas Station at 15841 El Tiro Road, Marana for $3,144,894 (RED COMP #7360)
6. Giant Gas Station at 6890 N Sandario Road, Tucson for $1,052,871 (RED COMP #7361)
7. Giant Gas Station at 6280 East Broadway Blvd, Tucson for $1,309,733 (RED COMP #7426)
8. Giant Gas Station at 4301 East Broadway Blvd., Tucson for $836,787 (RED COMP #7435)
9. Giant Gas Station at 6777 N Sandario Road in Tucson for $5,358,211 (RED COMP #7434)
10. Giant Gas Station at 1200 South Sierrita Mountain Road in Tucson for $1,339,195 (RED COMP #7427)

Eastdil Secured represented CMFT in the transaction.

CMFT reported in a written statement that net proceeds from the transaction would assist CMFT in the process of pursuing a more diversified investment strategy across the capital structure, ultimately transitioning to a mortgage REIT. The Company intends to balance its existing core of necessity commercial real estate assets leased to creditworthy tenants under long-term net leases with a portfolio of commercial mortgage loans and other credit investments.

“We believe that the transition to a credit-focused strategy will maximize shareholder value,” said Richard Ressler, Chairman of the Board of Directors, Chief Executive Officer and President of CMFT, and Co-Founder and Principal of CIM Group.  “Once we reposition our portfolio over the next 12-24 months, we may pursue a listing of the Company’s common stock on a national securities exchange, providing liquidity for our shareholders.”

This transaction is the latest in a series of actions that have been taken by the Company to further its objective of transitioning to a mortgage REIT, including amending the Company’s charter to help position the Company for a potential listing on a national securities exchange, re-naming the Company, and amending the Company’s management agreement with its external manager to better align the terms of the agreement to those of other publicly listed mortgage REITs.

“We are pleased with our progress diversifying our investments and the steps taken to help achieve our long-term objectives,” Ressler added.

CMFT is a public, non-listed REIT formed in 2012 that primarily owns and operates a diversified portfolio of core commercial real estate assets consisting of net leased properties and a portfolio of commercial mortgage loans. As of September 30, 2019, the Company’s loan portfolio consisted of nine loans with a net book value of $187.0 million. CIM Real Estate Finance Trust, Inc. was previously known as Cole Credit Property Trust IV, Inc. and changed its name on August 14, 2019. CMFT, which is sponsored by an affiliate of CIM, intends to pursue a more diversified investment strategy, ultimately transitioning to a mortgage REIT.

 

The 10,000-square-foot retail lease at 3401 E Fort Lowell for a funiture and design center handled by Brenna Lacey of VOLK Company, highlights this week’s lease report.

The following commercial leases were reported to the Real Estate Daily News for the Tucson Lease Report for February 10 thru 14, 2020.

RETAIL – 3401 E FT. LOWELL RD., TUCSON
Brenna Lacey of VOLK Company represented the landlord, Poets Corner LLC, in the 10,000-square-foot lease of the former Contents Furniture building at 3401 E. Ft. Lowell Road.  The tenant plans to open a furniture and design center in the first quarter of this year.

INDUSTRIAL – 242 S OLSEN AVE
Hustins Route 66, LLC leased 8,598-square-feet of industrial space located at 242 S. Olsen Ave. in Tucson, from Ozam Investments, LLC.  Max Fisher, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction.  Tim Bathen with Arizona Acquisition Strategies, represented the tenant.

OFFICE – 2840 E SKYLINE DR., TUCSON
TMCOne leased 6,661-square-feet of medical office space in Plaza Colonial, 2840 E. Skyline Dr., Suite 230 in Tucson, from Plaza Colonial, LLC.  Richard M. Kleiner, MBA, Principal and Office Specialist with Cushman & Wakefield | PICOR, represented the tenant in this transaction.  John Yarborough with Romano Real Estate Corp., represented the landlord.

RETAIL – 1535 N STONE AVE., TUCSON
Aly Elkanany leased 4,400-square-feet at 1535 N. Stone Ave for an Egyptian restaurant called Alexandria’s Pearl. Bogen of VOLK Company represented the landlord, Vincente Sanchez-Martinez & Marita Gomez-Sanchez.

OFFICE – 5151 E BROADWAY BLVD., TUCSON
Ten Talents, LLC, dba Intelligent Office, renewed their lease with KCI-Broadway, LLC, Scott Seldin-Broadway, LLC, Belmont-Broadway, LLC, and Tucson 5151 Investments, LLC for 4,348-square-feet of office space at 5151 E. Broadway Blvd., Suite 1600 in Tucson.  Thomas J. Nieman and Richard M. Kleiner, MBA, Principals and Office Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction. Doug Marsh and Lori Casey with Oxford Realty Advisors, Inc. represented the tenant.

RETAIL – 6911 E BROADWAY BLVD
Alonso Dorame for a LA Tires & Wheels leased 2,950-square-feet at 6911 E. Broadway, Tucson.  The landlord is Broadway-Kolb LLC. Jeramy Price and Joey Castillo of VOLK Company handled the lease.

INDUSTRIAL – 3240 S DODGE BLVD., TUCSON
Nu Flow Services of Phoenix, LLC leased 2,807-square-feet of industrial space in South Dodge Business Center, 3240 S. Dodge Blvd., Suite 1 in Tucson, from Presson Corporation.  Principal Robert C. Glaser, SIOR, CCIM and Max Fisher, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction. Tim Healy with CBRE, Inc. represented the tenant. [mepr-show rules=”58038″]Asking lease rate: $8.16 SF/YR Modified Gross[/mepr-show]

RETAIL – GRANDE AVE., TUCSON
Lipsey Communications LLC leased 2,600-square-feet on Grande Avenue in Nogales for a Sprint store.  The landlord is Orama LLC. Rick Borane and Kevin Volk of VOLK Company handled the lease.

RETAIL – CONTINENTAL PLAZA, GREEN VALLEY
Mary Jo Claussen leased 2,514-square-feet for Maria’s restaurant in Continental Plaza, the Safeway anchored center in Green Valley:

INDUSTRIAL –2420 W RUTHRAUFF RD., TUCSON
Home Service Experts, PLLC leased 2,160-square-feet of industrial space in Ruthrauff Commerce Center, 2420 W. Ruthrauff Rd., Suite 100 in Tucson, from Ruthrauff Partners, LLC.  Principal Robert C. Glaser, SIOR, CCIM, and Max Fisher, Industrial Specialists, with Cushman & Wakefield | PICOR, handled this transaction.

RETAIL – 1104 S WILMOT RD., TUCSON
Especially 4 You Personal Chef Service LLC  leased  1,972-square-feet at 1104 S. Wilmot Road.  The tenant plans to operate a café and catering kitchen under the name Chef Chic.  The landlord, Roath Properties LLC, was represented by Frank Arrotta of Tucson Realty.  Leah Bogen of VOLK Company represented Especially 4 You Personal Chef Service LLC

OFFICE – 200 W MAGEE RD., TUCSON
Tucson Pediatric Cardiology (Subtenant), has leased 1,694-square-feet at 200 W. Magee Road, Suite #160, from Nouveau Skin Centers (Sublandlord).  Michael Cortez of The Comme

RETAIL – Lot 11 of LAS PLAZAS at OLD VAIL RD., TUCSON
In the new retail building to be constructed on Lot 11 of Las Plazas at Old Vail Road. P.M. Sticker, Inc, leased 1,600-square-feet for a Wienerschnitzel / Hamburger Stand / Tastee Freeze restaurant.

OFFICE – 3939 E PIMA ST., TUCSON
AZ Medicare Helpers , LLC has leased approximately 1,580-square-feet of office space at 3939 E. Pima St Tucson, AZ from Venetian Investments, LLC. Juan Pantoja from Grimm Commercial, LLC represented the Tenant. Leah Bogen from Volk Company represented the Landlord in this transaction.

RETAIL – NE CORNER of CORTARO RD and I-10, TUCSON
Minh Pham leased 1,500-square-feet in the new mixed-use project under construction on the northeast corner of Cortaro Road and I-10.  The tenant, who was represented by James Robertson of Realty Executives, plans to operate a nail salon. Jeramy Price and Brenna Lacey of VOLK Company represented the landlord, Cortaro Commercial JV, LLC,

REAIL – 215 N HOFF AVE and 218 N 4^th AVE., TUCSON
Leah Bogen of VOLK Company represented the landlord, Tophoy Block LLC in two leases:
 * Fizzy Fairy Gifts LLC leased 1,588-square-feet at 218 N. 4^th Ave and plans to open the Old Pueblo Soapery.
 * Dust and Heritage LLC leased 762-square-feet at 215 N. Hoff Ave, Ste 121, for a retail and event showroom.

RETAIL – SPEEDWAY and SWAN, TUCSON
Revolutionary Grounds leased 1,404-square-feet in Mission Plaza, the Sprouts anchored shopping center at Speedway and Swan. The tenant plans to operate a coffee shop and book store. Kevin Volk and Jeramy Price of VOLK Company represented the landlord, Brazo LLC,

INDUSTRIAL – 3240 S DODGE VLVD., TUCSON
CTC Restoration Services LLC leased 1,400-square-feet of industrial space in South Dodge Business Center, 3240 S. Dodge Blvd., Suite 6 in Tucson, from Presson Corporation.  Principal Robert C. Glaser, SIOR, CCIM and Max Fisher, Industrial Specialists with Cushman & Wakefield | PICOR, handled this transaction.[mepr-show rules=”58038″] Asking lease rate: $8.16 SF/YR Modified Gross[/mepr-show]

OFFICE – 1670 E RIVER RD., TUCSON
Edward D. Jones & Co. LP, dba Edward Jones, leased 1,330-square-feet of office space in Mesquite Corporate Center, 1670 E. River Rd., Suite 100 in Tucson, from Caliber Mesquite, LLC.  Thomas J. Nieman, Principal and Office Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction.  James Hardman with DSW Commercial Real Estate, LLC, represented the tenant.

RETAIL – CONTINENTAL PLAZA, GREEN VALLEY
Total Care Services leased 1,300-square-feet for a pool services location. Leah Bogen and Kevin Volk of VOLK Company represented the landlord, Continental Green Valley Associates LLC

RETAIL – LAS PLAZAS
Lipsey Communications LLC leased 1,200-square-feet for a Sprint Store. The landlord, Las Plazas Partners, LLC, is represented by Andy Seleznov and Melissa Lal of Larsen Baker. Kevin Volk of VOLK Company represented two tenants.

INDUSTRIAL – 4955 E 29^th ST., TUCSON
Rayline Installations, Inc. leased 1,164-square-feet of industrial space in 29^th Street Business Park, 4955 E. 29th St. in Tucson, from Presson Corporation.  Robert C. Glaser, SIOR, CCIM, and Paul Hooker, Principals and Industrial Specialists, with Cushman & Wakefield | PICOR, handled this transaction.

INDUSTRIAL – 1870 W PRINCE RD., TUCSON
AZ Roadside Services, LLC leased 1,156-square-feet of industrial space in Exchange Place, 1870 W. Prince Rd., Suite 55 in Tucson, from Presson Corporation.  Principal Robert C. Glaser, SIOR, CCIM, and Max Fisher, Industrial Specialists with Cushman & Wakefield | PICOR, handled this transaction.

RETAIL – 245 E CONGRESS., TUCSON
Leah Bogen of VOLK Company represented the landlord, One North Fifth LLC at 245 E. Congress in in the lease to FIT, LLC, of 1,043-square-feet for a barre studio.

OFFICE – 1200 N EL DORADO PL., TUCSON
Human Resource Network, Inc. renewed their lease with El Dorado Ventures, LLC for 986-square-feet of office space in El Dorado Square, 1200 N. El Dorado Pl., Suite D-410 in Tucson.  Principal Thomas J. Nieman and Molly Gilbert, Office Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

RETAIL – BROADWAY and HOUGHTON, TUCSON
Math in the Box, LLC leased 900-square-feet in Montesa Plaza, the Galaxy Theater anchored project at Broadway and Houghton.  The tenant plans to open a tutoring center. Kevin Volk and Jeramy Price of VOLK Company represented the landlord, Montesa Plaza LP.s

RETAIL – GOLDER RANCH PLAZA, TUCSON
Ona Community Wellness Inc leased  900-square-feet in Golder Ranch Plaza, the Bashas’ anchored shopping center in Oracle, for a Your CBD Store. Jeramy Price and Kevin Volk of VOLK Company represented the landlord, Golder Ranch Property LLC.

RETAIL – 502 W AJO WAY, TUCSON
Allstate Insurance agency leased 800-square-feet at 502 W. Ajo Way to Armando and Natacia Rubio for the operation of an Allstate Insurance agency.  Terry Dahlstrom of VOLK Company represented the landlord, Dahlstrom Ajo Plaza LLC.

RETAIL – 245 E CONGRESS., TUCSON
Berry Greens Acai & Juice Bar, LLC leased 750-square-feet LLC at 245 E. Congress. Leah Bogen of VOLK Company represented the landlord, One North Fifth LLC

OFFICE – 2601 N CAMPBELL AVE., TUCSON
The University of Arizona has leased approximately 318-square-feet at 2601 N. Campbell Ave Tucson, AZ. The Landlord, Blue Lion Campbell, LLC was represented by Stephen Grimm and Juan Pantoja from Grimm Commercial, LLC.

OFFICE – 4560 E BROADWAY BLVD., TUCSON
April Trina and Jeffrey Neal Hampton leased 214-square-feet of office space in Midstar Plaza, 4560 E. Broadway Blvd., Suite 212 in Tucson, from Midstar Partners, LLC.  Principal Richard M. Kleiner, MBA, and Diane Carlson, Office Specialists with Cushman & Wakefield | PICOR, handled this transaction.

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