CoStar Reports on Retail Expansion Plans, New Developments, Acquisitions/Mergers/Sales, Closings or Bankruptcies, Personnel, Sustainability and more…
This week in the Retail Roundup, CoStar reports on
expansions or new concepts at Target, KB Toys, Fresh & Easy, Urban Outfitters, and TJX;
new retail developments in IL, NJ and LA;
acquisition, merger, loan or sale activity at GGP, DDR, Landry's Restaurants, Agree Realty, Bennigan's and PacSun;
closings, cutbacks or bankruptcies at Value City, 84 Lumber, Ponderosa and Bonanza Steakhouse;
personnel announcements at DDR, GGP, and Kellwood Company; and more.
Did you miss last week's CoStar Advisor national retail story, "Retail Property Sales Register Consistent Decline, Shopping Center Sales Drop-Off Dramatically" If, follow this link to read the story.
CoStar's Third Quarter 2008 National Retail Market Report, which provides comprehensive statistics for national and local retail real estate trends, is now available to subscribers under the Analytics / Market Reports headline on the CoStar Control Panel.
For non-subscribers, the report can be purchased via CoStar's Yahoo Store by following this link.
Target Reviewing Alternative Real Estate Ownership Structure
Target Corporation (NYSE:
TGT) announced Oct. 28 that it has been reviewing ideas since May for an alternative ownership structure related to its real estate with Pershing Square.
"Target has been evaluating these ideas with the assistance of outside advisors, including Goldman Sachs. While the company has not yet reached a conclusion regarding the merits of these ideas, our analysis raises serious concerns on a number of important issues, which we have shared with Pershing Square," said Target in a statement.
The discount retailer, which operates 1,684 stores in 48 states, typically owns the real estate associated with its stores. In fact, as of February 2, 2008, Target owned the real estate associated with 85% of its stores and 81% of its distribution centers. Perhaps the retailer will launch a sale-leaseback strategy.
To Read CoStar's full coverage on Pershing's proposed plan for Target, follow this link.
(Editor's Note: To keep up on happenings and trends in retail real estate, subscribe to CoStar's Retail News Roundup, a weekly column covering retailer expansions and new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales. new shopping centers, personnel changes, and sustainability. Follow this link for access to back issues of the roundup. In addition to appearing every week in the national news and retail news sections of our web site, you may also receive the Retail News Roundup for free via email by requesting to be added to the distribution list by contacting senior editor, Sasha Pardy at spardy@CoStar.com Also, click here to subscribe to CoStar's dedicated Retail RSS Feed.
EXPANSIONS / NEW CONCEPTS
Target Still Opening 70 New Stores Next Year, Despite Cutting Back
In an Oct. 23 meeting with the financial community, Target Corp. (NYSE:
TGT) said it plans to open 70 net new stores in 2009 and even fewer in 2010. This is down from a previous announcement planning for 70 to 75 net new stores in 2009; the retailer admitted to canceling some projects to pare down these store numbers. In 2007, the retailer opened 118 new stores and this year, it is on track to open at least 90 new stores.
KB Toys Opens 30 New Stores
KB Toys recently announced 30 new stores, set to open for the holiday shopping season. The new toy stores are opening primarily in malls, but also include some power, lifestyle and urban locations across the country. The retailer currently operates 460 stores across the country. According to CoStar Tenant, the typical store is 3,500 to 4,000 square feet.
Fresh & Easy Announces 11 New Arizona Stores
Fresh & Easy Neighborhood Market recently announced 11 new stores set to open in Arizona. The Tesco-owned company already operates 26 stores in the state, with a 27th scheduled to open November 13th. There are currently 96 stores open in CA, AZ, and NV. Fresh & Easy's store prototype is approximately 10,000 square feet. Phoenix Commercial Advisors represents Fresh & Easy in the Phoenix area.
Urban Outfitters Launches "We the Free"
Alternative apparel and lifestyle accessories retailer, Urban Outfitters has launched another new retail concept, dubbed "We The Free." The concept was born from the company's success with a mostly-knit casual apparel collection sold at its Free People stores. Two stores are now open in Brooklyn and Chicago, and another is scheduled to open soon in Hollywood. The 500- to 800-square-foot stores specialize in vintage wares that are designed to appeal to women in their late 20's and early 30's.
TJX Signs Three Leases for New HomeGoods Stores
The TJX Companies recently executed three HomeGoods store leases in Nanuet, Harriman and White Plains/Greenburgh, all part of New York's lower Hudson Valley area. The stores have a combined total of 75,479 square feet and a combined aggregate rent over the base term in excess of $13 million. Each store is approximately 25,000 square feet and will serve as a junior anchor at these New York power centers. Bill Hesse, president of Aries, Deitch & Endelson, represented HomeGoods in the transactions. TJX opened 19 HomeGoods stores in 2007 and is on track to open 25 new HomeGoods stores this year -- it has yet to announce its store opening intentions for 2009 or 2010.
(Editor's Note: To keep up on happenings and trends in retail real estate, subscribe to CoStar's Retail News Roundup, a weekly column covering retailer expansions and new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales. new shopping centers, personnel changes, and sustainability. Follow this link for access to back issues of the roundup. In addition to appearing every week in the national news and retail news sections of our web site, you may also receive the Retail News Roundup for free via email by requesting to be added to the distribution list by contacting senior editor, Sasha Pardy at spardy@costar.com Also, click here to subscribe to CoStar's dedicated Retail RSS Feed.
NEW SUPPLY
Joseph Freed and Associates Continues Progress on Block 37
Chicago-based Joseph Freed and Associates continues progress on its redevelopment of Block 37, an infamous vacant block in the Loop section of Chicago that was once home to two large movie palaces -- The Roosevelt and The Apollo, which were demolished in 1979 and 1989, respectively. After years of tribulation, the Joseph Freed is on track to open the project in summer 2009.
The plan includes 278,000 square feet of retail, dining and entertainment space within a five-story atrium (topped by a green roof providing views for the residential components) adjacent to an office media tower that will be anchored by an interactive CBS2 Chicago broadcasting studio. Retail tenants include a Muvico movie theatre, Zara (15,030 sq. ft.), PUMA (8,000 sq. ft.), Ben Sherman (3,100 sq. ft.), David Barton Gym, Auntie Anne’s, Godiva, Sabon, Steve Madden, a new concept restaurant by Lettuce Entertain You, Au Bon Pain, Rosa Mexicano, Beard Papa's, Gateway News, Freshii, and Lululemon Athletica. The project is currently 60% leased, with another 20% in final lease negotiation.
Colonial Pinnacle Nor Du Lac Breaks Ground in Louisiana
Colonial Properties Trust, together with Robert B. Aikens & Associates, has broken ground on Colonial Pinnacle Nor Du Lac, a 904,000-square-foot open-air lifestyle center located at the intersection of Highway 21 and Interstate 12 in Covington, LA. Anchor tenants will include Dillard's, Kohl's, Dick's Sporting Goods, Barnes & Noble and Ulta Cosmetics, as part of a 115-tenant retail lineup. The $240 million project will also include 35,000 square feet of office space and a hotel. Delivery is scheduled for October 2009.
NRDC to Start Work on Somerdale Redevelopment Project
National Realty & Development Corp. (NRDC) is scheduled to start construction at the end of this month on Coopertowne Center, a 385,000-square-foot shopping center to be located at the convergence of Eversham Ave. and White Horse Pike in Somerdale, NJ. The project is the redevelopment of Lions Head Plaza, which was completed in 1988, is only 30% occupied, and has been labeled a "greyfields" project by the State of New Jersey. NRDC will maintain 209,000 square feet of the existing center, and an addition will be built to accommodate a tenant lineup including Wal-Mart, Cinemark and LA Fitness. NRDC will give up nine acres of the 42-acre site to a 100-unit active adult residential project to eventually rise.
Renaissance Square to Start Next Year in Fort Worth
Lockard Development, Moriah Real Estate Co., and Synergy Properties have joined up to develop a 67-acre shopping center located at the intersection of East Berry and Vaughn Streets in southeast Fort Worth, TX. Dubbed "Renaissance Square", the project will include at least 500,000 square feet of retail and restaurant space. Ground breaking is scheduled for summer 2009, with completion schedule for fall 2011.
(Editor's Note: To keep up on happenings and trends in retail real estate, subscribe to CoStar's Retail News Roundup, a weekly column covering retailer expansions and new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales. new shopping centers, personnel changes, and sustainability. Follow this link for access to back issues of the roundup. In addition to appearing every week in the national news and retail news sections of our web site, you may also receive the Retail News Roundup for free via email by requesting to be added to the distribution list by contacting senior editor, Sasha Pardy at spardy@costar.com Also, click here to subscribe to CoStar's dedicated Retail RSS Feed.
ACQUISITION/MERGER/SALE/LOAN ACTIVITY
General Growth Puts Las Vegas Gems on the Block; Appoints New Interim CEO & President
The country's second-largest mall REIT, General Growth Properties, today announced significant changes to its management, as well as an initiative to sell its Las Vegas assets.
John Bucksbaum has stepped aside from his capacity as CEO for Adam Metz to serve as GGP's interim CEO; Bucksbaum will continue to serve as chairman of the board. Thomas Nolan Jr. has assumed the role of interim president. Robert Michaels will continue to serve as COO, but has relinquished his board seat in order to insure the board maintains a majority of independent directors.
“We recognize that we are facing unprecedented challenges in this economic environment, and we are committed to working with all our stakeholders to achieve a successful outcome to our strategic review process,” said Metz.
GGP first announced its pursuit of strategic alternatives in an effort to pare down dept on Sept. 22, 2008 -- for more on that, follow this link for past CoStar coverage.
While Metz reiterated that GGP "continues to remain current on all of its debt obligations," he also stressed that the REIT is "fully engaged" in an evaluation of alternatives, including asset sales, joint ventures, corporate level capital infusions, and strategic business combinations.
With the caveat that "other assets" are actively being marketed, GGP confirmed that its portfolio of retail properties in Las Vegas are up for grabs. The portfolio includes luxury retail gems, Fashion Show Mall, Grand Canal Shoppes, and The Palazzo. Goldman Sachs & Co. and Eastdil Secured are jointly marketing the portfolio.
Simultaneously, GGP is working to extend the debt coming due on Fashion Show Mall and The Palazzo. As of June 30, 2008, GGP had $650 million in debt on the Fashion Show Mall and $250 million in debt on The Palazzo, both coming due Nov. 28, 2008. The company has $400.07 million in debt coming due on The Grand Canal Shoppes on May 1, 2009.
Some analysts say that GGP's development and acquisition of The Shoppes at the Palazzo is a major reason behind its predicament. In early March, GGP acquired the 536,000-square-foot Shoppes at Palazzo, which opened Jan. 18, 2008, from Las Vegas Sands Corp. for $290.8 million, $543 per square foot. The Shoppes serve as the retail portion of The Palazzo Resort Hotel & Casino and are connected to the existing Venetian resort and the Sands Expo and Convention Center facilities, as well as The Grand Canal Shoppes.
The Shoppes' purchase price was computed on a 6% capitalization rate for NOI up to $38 million and 8% on NOI in excess of $38 million. As part of the sale agreement, GGP agreed to make additional payments over the next four years to Las Vegas Sands if the project's NOI increases. At the time, GGP estimated it would spend a total of $600 million, or approximately $1,119 per square foot, to completely own the property at the end of the four years.
If the price per square foot GGP paid for its first phase of The Palazzo acquisition holds up in a sale of these high-end Las Vegas assets, the portfolio could demand as much as $1.57 billion.
The 490,862-square-foot Grand Canal Shoppes at the Venetian opened in 1999 and its 80 tenants include the likes of Sephora, Madame Tussaud's, and Wolfgang Puck's Postrio.
The Fashion Show Mall, at 1.9 million square feet, is the company's largest asset; it was built in 1981 and renovated in 2003. Anchored by Bloomingdale’s Home, Dillard’s, Macy’s, Neiman Marcus, Nordstrom, and Saks Fifth Avenue, GGP acquired the mall in 2004 as part of its acquisition of The Rouse Company.
The Rouse acquisition is the primary reason for GGP's high leverage -- the $7.2 billion deal was based on a low 5.4% cap rate and also included a $5.4 billion assumption of Rouse's debt. GGP has $595 million in Rouse Company bonds coming due April 2009.
Adam Metz is a founding partner of Polaris Capital. Prior to Polaris, he served as EVP and CIO of Rodamco North America; president, CFO and director of acquisitions for Urban Shopping Centers; and also held positions in the capital markets division of JMB Realty and the commercial real estate lending group at First National Bank of Chicago.
Thomas Nolan most recently served as managing director of real estate advisory and investment firm, Trefethen & Co. From 1984 to 2004, Mr. Nolan held various positions at AEW Capital Management including president and senior portfolio manager of AEW Partners Group, as well as a member of the firm's management and investment committees.
Also in the release, GGP addressed some suspicious activity between the Bucksbaum Family Trust and Bernard Friebaum, the company's recently terminated CFO and director. GGP said the Trust loaned Robert Michaels $10 million in advance unsecured loans to repay personal margin debt relating to company stock and that Michaels has already repaid that debt. However, the Trust lent $90 million to Friebaum for the same purchase, $80 million of which remains outstanding. GGP said that while failure to disclose the loans didn't follow company policy, "no company assets or resources were involved in the loans and that no laws or Securities and Exchange Commission rules were violated as a result of the loans."
Developers Diversified Selling 13 Assets into JV for $890M
Retail REIT, Developers Diversified (NYSE:
DDR), reached an agreement to sell 13 assets, totaling 5.9 million square feet (5.1 million of which DDR owns), to a new joint venture with an unidentified institutional investor for $890 million. Upon closing in mid-December, the joint venture will be owned 80% by the partner and 20% by DDR.
Under terms of the joint venture, DDR will continue to provide property management, development, and leasing services on the properties. DDR expects the transaction to generate more than $260 million in net proceeds, more than $170 million of which will be available at closing, with the remainder expected in the first half of 2009.
Agree Realty Rejects Unsolicited Acquisition Proposal
Shopping center owner/developer, Agree Realty Corporation (NYSE:ADC
), rejected an unsolicited acquisition proposal from Compson Holding Corporation to acquire the company. Agree's board determined that the proposal (value undisclosed) was inadequate and that continuing to implement the Company's long-term business plan would maximize stockholder value.
Bennigan's and Steak & Ale to Prevail Through Atalaya Capital Management
Private investment firm, Atalaya Capital Management, received approval from a federal bankruptcy court to buy Bennigan's Franchising Co. for an undisclosed amount. Bennigan's Franchising is what's left of the Bennigan's and Steak & Ale restaurant chains following the recent Chapter 7 liquidation of parent company, S&A Restaurant Corp. Atalaya intends to reopen at least 60 restaurants that were closed in bankruptcy as franchisee-owned locations. And in addition, it will invest in developing new prototypes.
PacSun Rejects $295M Takeover Bid from Small-Time Competitor
Specialty apparel retailer, Pacific Sunwear of California, Inc. (Nasdaq:PSUN), rejected an unsolicited proposal to be acquired by Adrenalina (OTCBB:AENA), a retailer that operates three Florida stores selling similar wares.
Miami-based Adrenalina said it would pay $4.50 per share (a 24% premium to PacSun's closing stock price the day before the announcement) for the 900-store retailer that caters to young people looking for surf and skateboard-related apparel and accessories.
Ferlitta Pulls Through on Financing to Make Landry's Restaurants Acquisition Happen
In late June, Landry's Restaurants, Inc. (NYSE: LNY) had agreed to be acquired by Ferlitta Holdings, a holding company formed by the company's founder, chairman, president and CEO, Tilman J. Ferlitta. The total value of the transaction was approximately $1.3 billion, which includes approximately $885 million of debt.
On Oct. 7, Landry's announced that Ferlitta's debt financing required to complete the transaction was in jeopardy because of "the closure of the company's Kemah and Galveston restaurants [due to hurricane], the instability in the credit markets, and the deterioration in the casual dining and gaming industries." As a result, Ferlitta said he was in pursuit of financing to make a revised offer for the company at a "substantially reduced price."
On Oct. 18, Landry's said it agreed to an amended agreement with Ferlitta, which would have Ferlitta Holdings acquiring Landry's for $13.50 per share, which equates to about $1.1 billion, including debt. Ferlitta secured $500 million in debt to finance the deal; but also secured a refinancing agreement for Landry's to pay back $400 million of its debt coming due by February 2009.
(Editor's Note: To keep up on happenings and trends in retail real estate, subscribe to CoStar's Retail News Roundup, a weekly column covering retailer expansions and new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales. new shopping centers, personnel changes, and sustainability. Follow this link for access to back issues of the roundup. In addition to appearing every week in the national news and retail news sections of our web site, you may also receive the Retail News Roundup for free via email by requesting to be added to the distribution list by contacting senior editor, Sasha Pardy at spardy@costar.com Also, click here to subscribe to CoStar's dedicated Retail RSS Feed.
CLOSINGS/CUTBACKS/BANKRUPTCIES
Value City Department Stores Files Bankruptcy, Fully Liquidating
Value City Department Stores filed Chapter 11 bankruptcy on Oct. 27, 2008 at the US Bankruptcy Court for the Southern District of New York. Additionally, the discount department store retailer said it would liquidate all of its 66 stores.
Value City blamed the filing on the economic downturn, feeling the pressures of light consumer spending. In addition, tough credit market conditions caused the retailer's vendors to tighten credit terms on inventory, resulting in Value City not being able to sufficiently stock its shelves.
Tiger Capital is the liquidator the company has selected to conduct liquidation sales at its stores. To complete this process, Value City has requested the Court approve a $40 million debtor-in-possession facility with Wells Fargo and National City Business Credit.
The company listed assets and liabilities between $100 million and $500 million in the filing. Its largest unsecured creditor is DSW Shoes, with approximately $4.5 million in claims. Retail Ventures Inc., owner of DSW and Filene's Basement, holds a 19% stake in Value City, as the company successfully shed its 81% ownership interest in Value City in mid-February 2008 to VCHI Acquisition Corp., a company formed by VCDS Acquisition Holdings, Emerald Capital Management and Crystal Value.
In October 2007, Value City operated 137 stores in the Midwest, mid-Atlantic and southeastern U.S. That month, it announced the sale of 24 stores to Burlington Coat Factory as part of an effort to explore strategic alternatives for the chain.
In the beginning of February 2008, the company announced the closure of another 30 Value City stores, leaving it with 83 stores. Approximately 17 Value City stores have quietly been closed since. According to CoStar Tenant, the average Value City store is about 92,000 square feet, but typical size ranges from 60,000 to 85,000 square feet.
According to CoStar Tenant, Value City leases a 486,531-square-foot distribution facility located at 3251 Westerville Road in Columbus, OH. In 2006, it renewed its 322,184-square-foot lease at a distribution facility located at 14174 N Washington Highway in Ashland, VA -- at this facility; Keck Realtors currently has Value City's space listed as available.
84 Lumber Closing 20 More Stores, Down Net 176 Stores Since 2005 Peak
Washington County, PA-based building supply retailer/wholesaler, 84 Lumber, announced the closing of another 20 stores in KY, (4), PA (3), GA (2), CA, IN, AL, MD, MO, NJ, NY, SC and VA.
As of Oct. 3, 84 Lumber operated 14 stores in Texas and 365 stores in 37 states with the heaviest concentration of stores in the northeast, mid-Atlantic, southeast and mid-west. This latest announcement brings the retailer down to 345 stores. At the beginning of 2008, the company operated 415 stores and at its peak in 2005, it operated 521 stores.
84 Lumber's newer stores average 80,000 square feet. According to CoStar Tenant, typical older 84 Lumber stores are 20,000 square feet.
Ponderosa and Bonanza Steakhouse Chains File Chapter 11
Metromedia Steakhouses Co., parent company of buffet restaurant chains Ponderosa Steakhouse and Bonanza Steakhouse, filed Chapter 11 bankruptcy. Plano, TX-based Metromedia said it would continue to operate as normal throughout the restructuring process, as it has already secured debtor-in-possession financing. The company listed $1 million to $10 million in assets and $100 million to $500 million in debt in its filing. Ponderosa and Bonanza franchisees were not included in the filing.
Metromedia Steakhouses is a subsidiary of Metromedia Restaurant Group, which put S&A Restaurant Group, the holding company of the Bennigan's and Steak & Ale chains, into Chapter 7 bankruptcy in July. The company immediately closed all non-franchised locations and private equity company, Atalaya Capital Management, is currently in the process of acquiring the Steak & Ale and Bennigan's brands.
Bonanza was founded in 1963 and in 1967, was sold to the Wyly family. Ponderosa was founded in 1968 and the two chains grew to 600 restaurants in 1989, when they were sold to Metromedia. Inspiration for the names came from the popular Bonanza TV show. The current number of company-owned and franchised restaurants is unknown.
(Editor's Note: To keep up on happenings and trends in retail real estate, subscribe to CoStar's Retail News Roundup, a weekly column covering retailer expansions and new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales. new shopping centers, personnel changes, and sustainability. Follow this link for access to back issues of the roundup. In addition to appearing every week in the national news and retail news sections of our web site, you may also receive the Retail News Roundup for free via email by requesting to be added to the distribution list by contacting senior editor, Sasha Pardy at spardy@costar.com Also, click here to subscribe to CoStar's dedicated Retail RSS Feed.
PERSONNEL ANNOUNCEMENTS
DDR Appoints Former GGP GM to Run Deer Park Town Center
Retail REIT, Developers Diversified (NYSE: DDR), appointed James Elliman, Jr. as general manager of Deer Park Town Center, a 386,000-square-foot lifestyle center in Deer Park, IL. Prior to DDR, Elliman served in various mall management positions at General Growth Properties (NYSE:GGP) since 1997; including VP of development (08/06 - 08/08), senior director of development (03/04 - 07/06), general manager of the Natick Mall (07/00 - 02/04), and general manager of the Steeplegate Mall (08/97 to 06/00). Prior to GGP, Elliman served as the general manager of Charter Oak Partners' Westbrook Factory Stores and general manager of Pyramid's Hudson Valley Mall. He is a former US Marine and holds a BA in Economics from Ohio Wesleyan University.
Kellwood Appoints Bob Ross VP of Retail
Kellwood Company appointed Bob Ross to the position of vice president of retail. In this capacity, Ross will be responsible for the retail operations of Kellwood's brands, which include the company's retail store expansion plan. Kellwood's brands include Baby Phat, Phat Farm, Vince, Sag Harbor, Briggs New York, My Michelle, and Jolt. While the company is primarily a wholesaler, it does operate some stand-alone retail stores. Ross will be particularly focuses on growing the store presence of Vince, a designer men's and women's sportswear brand that operates two stores in the Los Angeles area.
A 27-year industry veteran, Ross has extensive experience in growing and developing brands. Most recently, he served as VP of retail of Lacoste for 12 years, where he was instrumental in the company's sales growth and addition of new locations. Prior to that, he served as regional manager of Britches of Georgetown, a D.C.-area apparel chain that eventually went bankrupt and dissolved in 2003. Prior to Britches, he held positions in merchandising and operations, as well as general manager, at Lord & Taylor for 12 years.
(Editor's Note: To keep up on happenings and trends in retail real estate, subscribe to CoStar's Retail News Roundup, a weekly column covering retailer expansions and new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales. new shopping centers, personnel changes, and sustainability. Follow this link for access to back issues of the roundup. In addition to appearing every week in the national news and retail news sections of our web site, you may also receive the Retail News Roundup for free via email by requesting to be added to the distribution list by contacting senior editor, Sasha Pardy at spardy@costar.com Also, click here to subscribe to CoStar's dedicated Retail RSS Feed.
SUSTAINABILITY/ GREENING
JC Penney Breaks Ground on LEED-Registered Store in Texas
Department store retailer, JC Penney Company, Inc. (NYSE:JCP), broke ground Oct. 23 in Fairview, Texas, on its first store expected to obtain LEED certification. The 115,000-square-foot store is scheduled to open August 2009 as an anchor of The Village at Fairview, a 1 million-square-foot lifestyle center recently completed by developer, MG Herring Group.
JC Penney said the Fairview store is designed to use 41% less energy than the average similar building. "Green" features of the store include a reflective white roof; energy efficient lighting; landscape materials that will reduce irrigation needs by 50%; plumbing fixtures that reduce building water consumption by 20%; use of recycled content in store construction; use of regional materials harvested, manufactured and delivered from within 500 miles of the store site to reduce transportation emissions; an HVAC system that is 21% more energy efficient; and a unit that allows for remote monitoring and control of HVAC and lighting systems.
Additionally, the Fairview store has been certified by the U.S. Environmental Protection Agency as "Designed to Earn the ENERGY STAR," making JC Penney the first national retailer to receive this designation for implementation of energy conservation from the store design stage. To be eligible, building construction documents must be 95% complete and receive an energy-efficiency rating of 75 or higher on a 100-point scale. JC Penney said The Village at Fairview store received a rating of 84. Based on its design, the store's annual energy performance is expected to be in the top 25% of comparable retail buildings.
Safeway Completes Solar Roof Installation on Simi Valley Store
Grocery magnate, Safeway, has completed the installation of a solar-powered roof at the Pavilions grocery store, located just off Tapo Canyon Road in Simi Valley, CA. The installation is the first Safeway has completed in Southern California; soon after it completed a solar panel installation on a store in Camarillo. The Pavilions store is equipped with a 135-kwh, 744-panel, system on its roof, which is expected to provide the store with 15% to 18% of its energy needs annually. Safeway owns the store real estate. It has selected 20 other stores that it plans to install similar roof systems on.
(Editor's Note: To keep up on happenings and trends in retail real estate, subscribe to CoStar's Retail News Roundup, a weekly column covering retailer expansions and new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales. new shopping centers, personnel changes, and sustainability. Follow this link for access to back issues of the roundup. In addition to appearing every week in the national news and retail news sections of our web site, you may also receive the Retail News Roundup for free via email by requesting to be added to the distribution list by contacting senior editor, Sasha Pardy at spardy@costar.com Also, click here to subscribe to CoStar's dedicated Retail RSS Feed.