Sears Holdings: Confirmed Third Party Tenant Leases

As has been discussed on this blog, Sears Holdings (SHLD) has been devoting material resources in recent years to leasing out space in the company’s stores. That way the company can close or reduce the size of money-losing locations and lease them to other retailers in order to boost cash flow. This post will keep a running list of confirmed Sears and Kmart locations where retailers have signed a lease to occupy space. Since the company discloses minimal information about its leasing activities, my hope is that others will contribute to this list (please use the comments section to share links to articles or other evidence of leases not listed here) and it can be a valuable shared online resource for those who are watching the ever-changing operations of Sears.

Update: 04/01/15 – Today Sears Holdings announced the formation of Seritage Growth Properties, a new REIT that will commence trading on the public market in June 2015. Seritage will purchase and lease back 254 stores from Sears Holdings, as well as own a 50% interest in a joint venture with GGP that will operate another 12 stores. As a result, going forward the list below will only be updated with third party leases signed by Sears Holdings itself. Since Seritage will be filing publicly there is no need to reproduce updated information about that entity on this site going forward. The list below will be rearranged to better reflect these developments. Please continue to provide new leases for the list, as Sears Holdings is selling less than 40% of their owned stores to Seritage and will retain a large number of valuable properties for the time being. 

Update: 05/18/15:  – Seritage Growth Properties has updated their registration filings to include Q1 2015 pro-forma financial results:

Total revenue: $68 million

Operating expenses: $24 million

G&A expenses: $5 million (including $4 million of public company costs)

Joint venture income: $6 million

Pre-tax income: $45 million

Interest expense: TBD (example: debt of $1.25 billion at 5% implies interest of $16 million per quarter)

For those of you trying to pinpoint a value for Seritage, annualized funds from operations (FFO) should be in the neighborhood of $120 million annually. This figure assumes $1.25 billion of debt (leverage ratio of 6.9), which is simply a guess given that we do not know the capital structure yet. I will update these figures when the terms of the deal and the ratio of equity to debt is known.


Last Updated 04/01/15

LIST OF CONFIRMED SEARS HOLDINGS LEASES

Entire Kmart Stores (3 locations, ~250,000 SF)

Ansar Gallery – Free-Standing Store (Tustin, CA) – 108,000 sf >>> link
Fiesta Mart – Free-Standing Store (Houston, TX) – 42,000 sf >>> link
Zion Market – Free-Standing Store (San Diego, CA) – 94,500 sf >>> link

Kmart Box Splits (5 locations, ~200,000 sf)

Best Buy (proposed) – Free-Standing Store (Rockford, IL) – 45,000 sf >>> link
Gold’s Gym – Free-Standing Store (Charlottesville, VA) – ~25,000 sf (estimate) >>> link (photo only)
Kroger – Village Square at Kiln Creek (Yorktown VA) – 90,000 sf >>> link
Planet Fitness – Free-Standing Store Sublease (Sacramento, CA) – 22,000 sf >>> link
Rio Ranch Market – Free-Standing Store (Desert Hot Springs, CA) – 29,000 sf >>> link

Sears Box Splits (7 locations, ~350,000 SF)

Forever 21 – South Coast Plaza (Costa Mesa, CA) – 43,000 sf >>> link
Level 257 Restaurants – Woodfield Mall (Schaumburg, IL) – 40,000 sf >>> link
Primark – Willow Grove Park Mall (Willow Grove, PA) – 77,500 sf >>> link
Primark – Freehold Raceway Mall (Freehold, NJ) – 66,500 sf >>> link
Primark – South Shore Plaza (Braintree, MA) – 70,000 sf >>> reader tip
Sears Hometown Stores – Offices at Sears HQ (Hoffman Estates, IL) – 36,000 sf >>> see SEC filings
Whole Foods Market – Friendly Shopping Center (Greensboro, NC) – 34,000 sf >>> link

Sears Full Property Redevelopments (1 location, ~80,000 SF)

Marianos/Sears/TBD Rebuild (Elmwood Park, IL): ~80,000 sf (planning stages) >>> link

Sears Auto Center Redevelopments (9 locations, ~150,000 SF)

Woodfield Mall (Schaumburg, IL): ~30,000 sf total >>> link
Colonial Park Mall (Harrisburg, PA): ~18,000 sf >>> link
Genessee Valley Mall (Flint, MI): 12,000 sf >>> link
Lincoln Mall (Matteson, IL): ~13,000 sf >>> link
Northwoods Mall (North Charleston, SC): ~16,000 sf >>> link
RiverTown Crossing Mall (Grandville, MI): 12,000 sf >>> link
Smith Haven Mall (Lake Grove, NY): 8,000 sf >>> link
Woodland Mall (Grand Rapids, MI): 20,000-40,000 sf >>>  link

In-Store Embedded Space (~3.65 Million SF)

Lands End: 236 locations (as of 01/22/15), 7,400 sf each = ~1.75 million sf >>> link
Sears Optical: 541 locations (August 2014), 1,500 sf each (est) = ~800,000 sf >>> link
Jackson Hewitt: 400 locations (December 2012), 2,000 sf each (est) = ~800,000 sf >>> link
Sears Hearing Centers: 191 locations (February 2014), 1,500 sf each (est) = ~300,000 sf >>> link

 

SERITAGE GROWTH PROPERTIES STORES PREVIOUSLY LISTED ABOVE:

24 Hour Fitness – The Village at Orange (Orange, CA) – 54,000 sf >>> link
Aldi – Free-Standing Store (Hialeah, FL) – 18,000 sf >>> link
Aldi (Hackensack, NJ) – 17,000 sf >>> no details known, headline only on seritage.com
At Home – Pueblo Plaza (Peoria, AZ) – 105,000 sf >>> link
At Home – Willowbrook (Houston, TX) – 134,000 sf >>> link
At Home – Kickapoo Corners (Springfield, MO) – 113,000 sf >>> link
At Home – Free-Standing Store (Ypsilanti, MI) – 92,000 sf >>> link
At Home – Free-Standing Store (Phoenix, AZ)- 152,000 sf >>> link
Altamonte Mall Auto Center (Altamonte Springs, FL): ~16,000 sf >>> link
Aventura Mall Redevelopment (Aventura, FL): ~275,000 sf (design plan submitted) >>> link
Corner Bakery – Westfield UTC Mall (San Diego, CA) – ~4,000 sf >>> link
Destination XL – Corbins Corner (West Hartford, CT) – 8,500 sf >>> link
Dick’s Sporting Goods – Mall at Rockingham Park (Salem, NH) – 79,000 sf >>> link
HomeGoods – Hastings Ranch Plaza (Pasadena, CA) – ~27,000 sf (estimate) >>> link
Kroger – Cumberland Mall (Atlanta, GA) – 93,000 sf >>> link
License Bureau Inc: (St Paul, MN) – ~3,500 sf (est) >>> link
McCain Mall Auto Center (North Little Rock, AR): ~21,000 sf >>> link
Nordstrom Rack – The Mall at Sears (Anchorage, AK) – 35,000 sf >>> link
North Riverside Park Mall Auto Center (North Riverside, IL): ~21,000 sf  >>> link
Oglethorpe Mall Redevelopment (Savannah, GA): ~50,000 sf (actively seeking tenants) >>> link
Old Time Pottery – Free-Standing Kmart Store (Orange Park, FL) – 84,000 sf >>> link
Primark – Staten Island Mall (Staten Island, NY) – 70,000 sf >>> link
Primark – Danbury Fair (Danbury, CT) – 70,000 sf >>> link

Ridgedale Center (Minnetonka, MN): ~25,000 sf total >>> link
Sears Outlet (6 stores in MA/NC/NV/VA/WI) ~150,000 sf (estimate) >>> see SEC filings
Sears Hometown (3 stores in IL/KS/MI~30,000 sf (estimate) >>> see SEC filings
Ulta – Marketplace at Braintree (Braintree, MA) – 11,000 sf >>> link
Westland Mall Auto Center (Hialeah, FL): ~43,000 sf (actively seeking tenants) >>> link
Whole Foods Market – Colonie Center (Albany, NY) – 32,000 sf >>> link

Pembroke Mall (Virginia Beach, VA)
REI – 27,500 sf >>> link
Nordstrom Rack – 32,500 sf >>> link
DSW – ~25,000 sf (estimate) >>> link

Landmark Crossing (Greensboro, NC)
Floor & Decor – 70,000 sf >>> link
Gabe’s –  50,000 sf >>> link
Sears Outlet – ~25,000 sf (estimate) >>> see SEC filings

Janss Marketplace (Thousand Oaks, CA)
DSW – ~25,000 sf (estimate) >>> link
Sports Authority – ~45,000 sf (estimate) >>> link
Nordstrom Rack – 40,000 sf >>> link

King of Prussia Mall (King of Prussia, PA)
Primark –  – 100,000 sf >>> link
Dicks Sporting Goods – ~75,000 sf >>> link

Burlington Mall (Burlington, MA)
Primark –  70,000 sf >>> reader tip
Auto Center –  ~60,000 sf (actively seeking tenants) >>> link

Westfield Countryside Mall (Clearwater, FL)
Whole Foods Market –  – 38,000 sf >>> link
Nordstrom Rack – Westfield Countryside Mall (Clearwater, FL) – 38,000 sf >>> link

Oakbrook Center (Oak Brook, IL)
Pottery Barn – ~16,000 sf (estimate) >>> link
Pinstripes – 40,000 sf >>> link
Auto Center – ~17,000 sf total >>> link
West Elm – ~14,000 sf (estimate) >>> link