News Briefs

One of the world's leading private investment firms has entered into a joint venture to buy retail centers. 

Bain Capital Real Estate and 11North Partners, a retail-focused investment platform, have announced a strategic partnership to acquire and operate open-air retail centers throughout the United States and Canada. Bain Capital has approximately $180 billion of assets under management.

The two groups will target retail opportunities across the “risk-return spectrum,” and will predominantly focus on open-air retail assets with a high concentration of necessity-based tenants such as grocery stores.

“In convenience-oriented, necessity-based retail, we see a format that is well aligned with these themes, will continue to enjoy strong operating performance, and delivers strong results to tenants,” said Ryan Cotton, head of Bain Capital Real Estate. “But, the market has yet to fully appreciate the bifurcation of the retail sector, which we believe leads to the opportunity for attractive risk-adjusted buying.”

11North was founded by CEO Brian Harper, a 25-year real estate industry veteran with significant retail experience. He most recently served as president and CEO of RPT Realty, where he successfully led a strategic transformation of the company and oversaw its merger with Kimco Realty in January 2024.

“Today, open-air retail centers benefit from a confluence of tailwinds and strong real estate fundamentals that create a risk-return opportunity,” said Harper. “We believe historically low supply growth and increased demand for open-air shopping centers, driven by strong retail sales, persistent work-from-home trends, and the increased prevalence for omnichannel shopping, provide a favorable backdrop for the sector.”

GameStop Corp. continues to trim its C-suite.

The struggling video game retailer said Thursday that COO Nir Patel is departing the company, effectively immediately. GameStop revealed his exit in an SEC filing.

In the filing, the retailer said that Patel’s responsibilities will be “absorbed” by other members of the company’s management team. Patel joined GameStop in May 2022, coming from department store company Belk, where he served as CEO for just under a year. Prior to Belk, Patel was a senior VP with Kohl's.

Patel’s departure is the latest management shakeup at GameStop. In June, the retailer ousted CEO Matt Furlong and named  activist Ryan Cohen as executive chairman.

In March, GameStop reported fourth-quarter earnings and revenue that missed analysts estimates amid increased competition and sluggish consumer spending. Sales fell to $1.79 billion from $2.23 billion in the year-ago quarter. In a cost-cutting move, the company also cut an unspecified number of jobs.

Woodbridge Mall in Woodbridge, N.J. has a new owner.  

The 1.8 million-sq.-ft. shopping center was sold in February and the buyer — still unnamed — took ownership on Monday, April 1, reported TAPintonet.com. The purchase price was put at $70.4 million.

John E. McCormick, the mayor of Woodbridge, told TAPinto that the buyer “has a terrific track record across the country for revitalizing troubled assets.”

“We are thrilled that they want to keep Woodbridge Center as the iconic shopping and entertainment destination that it should be,” he said.

Chicago-based Brookfield Properties acquired Woodbridge Center, which opened its doors in 1971, as part of its acquisition of GGP Inc. in 2014.  The mall was appraised at $366 million at that time, according to CoStar data, but its most recent appraisal dropped to $79 million, according to the report. It has struggled in recent years amid evolving shopping patterns and as as two of its biggest stores, Lord & Taylor and Sears went dark. 

In October 2021, Brookfield consented to the appointment of a receiver on the property and stopped making payments on the loan the following June, reported CoStar.

Walmart’s freestanding health center concept is entering two new markets.

Walmart Health is expanding its footprint in Texas, with the opening of its first location in the Houston area the week of April 8. It plans to roll out more locations throughout the summer and fall. 

In total, Walmart will open 22 new Health Centers in 2024, including 18 in Texas (eight in the Houston metro area and 10 in the Dallas/Fort Worth region) and four in the Kansas City market. The Kansas City sites will be Walmart Health’s first locations in Missouri.

The company said it is committed to having 75-plus total locations open by early 2025. (Walmart Health had 48 locations in five states.)

Walmart launched Walmart Health in 2019. The centers are designed to allow patients to manage their health care in one location, with services that include dental, primary care, behavioral health, x-ray, labs and more.

“Walmart Health continues to deliver healthcare that is convenient and personalized to each patient,” said Dr. David Carmouche, Walmart’s senior VP of healthcare dDelivery. "We’re thrilled to be expanding into Missouri and deepening our presence in Texas this year as we remain committed to growing our footprint to over 75 locations by early 2025."

Fazoli’s will soon be expanding north of the border.

The Italian quick-serve chain known for pasta, pizza and unlimited breadsticks, will open 25 locations in Canada over the next 10 years through a franchise agreement with Briwin Restaurants Inc. The first units are expected to open in 2025 in the province of Alberta.

The Canadian expansion is the latest for the chain. In early 2023, Fazoli’s announced a development agreement to bring five Fazoli’s locations to Puerto Rico over a six-year period. Founded in 1988 in Lexington, Ky, Fazoli’s operates 220 restaurants in 27 U.S. states.

“Fazoli’s has enjoyed tremendous success expanding domestically, operating in 26 states with over 200 locations, and is now well positioned to make its international debut,” said Taylor Wiederhorn, chief development officer of FAT Brands, parent company of Fazoli’s. “At FAT Brands, we have a strong network of international franchisees that span across nearly all our restaurant concepts. We’re excited to have an experienced operator come from within our Fatburger franchise system and commit to launching and developing an additional FAT Brands restaurant concept in Canada. We are confident that expanding in Canada is a natural first step for Fazoli’s in becoming a leading global chain.”

FAT Brands franchises and owns more than 2,300 units worldwide, and currently owns 17 restaurant brands. In the fourth quarter of fiscal 2023, which ended Dec. 31, 2023, FAT Brands opened 29 new stores, bringing the full-year total to 125 new openings.

Ashley Stewart Inc. has a new owner.

Kinbow LLC has acquired the majority stake of the  plus-size value fashion retailer. The price was not disclosed. Ashley Stewart specializes in apparel, intimates and accessories for women sizes 10 to 36. 

Kinbow is an affiliate of RA Capital, a group company owned by Ram Ajjarapu, with investments in technology, insurance, financial services, renewable energy and retail industries. The company plans to continue to operate all of Ashley’s Stewart’s 75 stores and its e-commerce business in their current form. It also plans to keep the retailer’s current management team in place.

“We are very excited about the opportunity to acquire this iconic retailer and grateful for all of the support we have received from all of Ashley Stewart’s stakeholders, especially our lender, Wingspire Capital, who worked closely with us to consummate this transaction,” said Ajjarapu, executive director of Kinbow.

“This acquisition demonstrates our belief in the value fashion market and marks a strategic expansion of Kinbow into the retail business,”  Ajjarapu continued. “As an accomplished apparel and accessories manufacturer with proven experience in developing stylish inclusive size styles, we expect to continue the heritage of the Ashley Stewart brand and look for opportunities to expand the on-trend fashion offerings the company’s loyal customers have come to expect.”

Kinbow LLC was represented by Norris McLaughlin, P.A. Guggenheim Securities, LLC is acting as financial advisor to Ashley Stewart; Brownstein Hyatt Farber Schreck LLP is serving as legal advisor to ASI Holdco.