Real Estate

Hoffman Estates, Ill. – In its latest move to capitalize on the value of its real estate and raise more cash, Sears Holdings Corp. has formed a joint venture with Simon Property Group whereby Simon will take ownership of 10 Sears stores in Simon malls and lease them back to Sears, who will continue operating Sears stores in the venture. The stores include properties Sears has leased to other entities.

Saks Off 5th is joining the likes of Nordstrom Rack, Marshalls and Old Navy as the newest tenant at a Southern California shopping center that serves by value conscious residents of a community synonymous with celebrity and glamour.

Sears Holdings will eventually need to sell more stuff to shoppers to remain viable as a retailer, but in the meantime the company has shown itself to be more adept at generating cash through complex real estate deals that unlock the value of an increasingly less productive store base.

New York -- General Electric Company on Friday announced it will sell or spin off the majority of its $500 billion GE Capital finance business over the next two years as it looks to simplify and concentrate on its industrial roots. The company said it will keep its aircraft leasing operation and smaller lending lines.

GE said it has sold its real-estate assets, which include commercial loans and office buildings, for $26.5 billion, with  Wells Fargo & Co. and private equity firm Blackstone Group buying the bulk of it.

New York -- Saks Fifth Avenue Off 5th will open its first store in Los Angeles County, in the Beverly Connection shopping center in Beverly Hills California.

The new two-level, 27,000-sq.ft. store will be fashioned in an open, modular layout.

“Saks Fifth Avenue Off 5th’s move to Beverly Hills is an exciting venture for us,” stated Jonathan Greller, president of outlets, HBC (Saks’ parent company).
 

Overland Park, Kan. -- A new chapter in the ongoing saga of RadioShack started on Friday with Sprint launching retail operations in 1,435 RadioShack stores.
 

AT&T has opened one of its largest stores yet, a 9,000-sq. ft. location on Boylston Street in Boston.

The store, which is just a few steps away from the finish line of the Boston Marathon, sets itself apart with an all-glass front and space that spans two floors. A Boston flavor is prevalent throughout the space, starting with an oversized Boston Marathon-themed mural.

Las Vegas -- Ikea has broken ground for its future Las Vegas store.

The 351,000-sq.-ft. store will be built on 26 acres along the northern side of Interstate-215 at Durango Drive, near Sunset Road. Ikea has contracted with R&O Construction to build the project, and store plans reflect the same unique architectural design for which Ikea stores are known worldwide.

Shoppers looking for Swedish mustard or cheap bathroom rugs won’t have to ask themselves “Why isn’t there an Ikea in Las Vegas?” for very much longer.

The Swedish home furnishings retailer, along with Nevada Governor Brian Sandoval, Clark County Board of Commissioners Chair Steve Sisolak, Clark County District F Commissioner Susan Brager, U.S. Congressman Joe Heck, local officials and community leaders on-hand, officially broke ground this week for a future Ikea in Las Vegas.

Fort Worth, Texas – Pier 1 Imports Inc. on Thursday reported a declining profit for its fourth quarter and also announced that it plans to close 100 stores as part of a three-year real estate optimization plan.

Pier 1 reported net income of $33.1 million in the fourth quarter of fiscal 2015, down 22% from $42.6 million the same quarter a year earlier.  Expenses related to the retirement of the company’s former CFO, as well as increased selling, general and administrative (SG&A) expenses, contributed to the decrease in profit.