CoStar compiles news of corporate expansions, relocations, extensions, closures, layoffs, lease cancellations and mergers in the weekly Lease Up/Lease Down news report, a concise read keeping you updated on major corporate moves affecting commercial real estate, and can also be a valuable source for business leads.
In this week's issue:
Ford adds 1,200 jobs in Chicago
DST and Sony make major workforce reductions
Movie Gallery closes 800+ stores
Expansions, Relocations & Extensions
Exploring Possibilities: Ford Adding 1,200 Jobs in Chicago
Ford Motor Co. said last week that it plans to invest $400 million in its Chicago Assembly Plant as it gears up for the production of the new, fuel-efficient Ford Explorer model.
The expansion, which is due to be completed by fourth quarter this year, should create about 1,200 jobs to make up a second production shift at the facility. Ford is also increasing production at its nearby stamping plant.
Approximately $180 million of Ford's investment is going towards manufacturing costs at the Chicago sites, while about $220 million is to be used for launch and engineering costs. The automaker also plans to make upgrades in supplier tooling for the new Explorer model.
The 3.5 million-square-foot Chicago Assembly Plant is one of 11 Ford facilities in the United States participating in U.S. Department of Energy's Advanced Technology Vehicles Manufacturing Incentives Program. Implemented last year by the Obama administration, the program provides incentives to companies that establish plants that produce light duty, fuel-efficient vehicles and their components.
Ford's next generation Explorer is designed to deliver about 25 percent better fuel economy than the current model. Additional features include a six-speed transmission, unibody construction, Ford’s EcoBoost engine technology and lightweight materials.
"The new Explorer will redefine the SUV for the modern era - retaining the capability customers want while delivering superb fuel efficiency, comfort and convenience," said Mark Fields, Ford’s president of The Americas. He added that the expansion is directly in-line with Ford’s commitment to produce fuel-efficient vehicles and create jobs.
Full details on the new Explorer are to be revealed later this year, Ford said.
"Ford has been a major presence in our city since 1924, when it opened this plant to make Model T’s," said Chicago Mayor Richard M. Daley. He added that Ford's expansion in Chicago could be "a sign that better times are coming."
Ford took advantage of Illinois' EDGE program, which offers a tax incentive to companies that expand operations in the state when there is significant competition to locate elsewhere. Illinois Governor Pat Quinn even amended the program recently to make it more accessible to automakers.
"Governor Quinn immediately understood the importance of helping Ford by proposing and passing legislation that provides us with an alternative way to claim and secure these important tax credits," noted Fields.
In addition, Daley said that the City has committed $17 million in Tax Increment Financing funding for infrastructure improvements in the areas surrounding Ford's Assembly plant, as well as funding for job training and recruitment programs.
Chicago has also temporarily eliminated the employer 'head tax' to encourage companies to add more jobs in the region.
Cox To Build 600,000-SF HQ in Sandy Springs
By Laurie Forbes
Cox Enterprises Inc. will build a new 600,000-square-foot office facility for the Cox Communications technology group in Sandy Springs, GA. The facility will break ground this year on 28.5 acres in the Central Park business park on the east side of Peachtree Dunwoody Road in DeKalb County. About 1,000 employees from the information technology, Internet and engineering departments will occupy the space in two years.
The project will be close to Cox Enterprises’ nine-year-old headquarters, a 510,000-square-foot, 16-story building also on Peachtree Dunwoody Road. Cox Communications will continue to house its non-technology group at its main complex at 1400 Lake Hearn Drive.
Cousins Properties was hired as the developer on the new complex. HGOR and Duda/Paine Architects will consult on construction and land use. CB Richard Ellis is Cox’s commercial real estate advisor.
SunTech Power Holdings Settles on Goodyear facility
By Emily Baker
Suntech Power Holdings Co. has leased 117,853 square feet at the Goodyear One building at 3801 S. Cotton Lane in Goodyear, AZ. The Chinese solar power company signed a 10-year lease deal and move-in is in two phases, first being in May 2010 and second in July 2010.
Suntech, which
announced its expansion into the Phoenix area in November, plans to create about 75 jobs in the area. The company estimated that it could double that amount with in a year, depending on market conditions. Suntech is expected to receive $2.1 million in federal tax credits.
Suntech is investing $10 million and $15 million to develop the space plant for producing 30 megawatts of solar panels annually. Production could begin as early as fall.
Patrick Feeney, Daniel Calihan, and Rusty Kennedy of CB Richard Ellis represented the landlord, Duke Realty Corp. Andy Jaffe of Commercial Properties, Inc. represented the tenant.
Hayneedle Inks 500,000-SF Industrial Lease in Ohio
Hayneedle is expanding its distribution operations, leasing 501,357 square feet at Building A of the Monroe Logistics Center in Monroe, OH. IDI signed the online home and lifestyle products retailer to a long-term lease, slated to commence in June.
Omaha-based Hayneedle, formerly NetShops Inc., has been seeing significant business growth over the past few years, having been recognized by
Internet Retailer and
Inc. as one of the fastest growing companies in the online retail industry. The new lease continues that growth, increasing Hayneedle's distribution operations by about 50 percent. It is the company's first expansion into the Cincinnati market.
"This region is ideal for consumer-direct distribution," said Tom Clement, director of Hayneedle's logistics and distribution strategy. "It provides for more rapid delivery to our customers than any other region."
Bob Bunton and David Maener with CB Richard Ellis represented Hayneedle. IDI received in-house representation from Doug Armbruster, vice president of leasing in Cincinnati.
Hayneedle received a $97,837 tax credit from the state of Ohio. Good for six years, the credit requires that Hayneedle operate in Monroe for at least nine years. The retailer estimates that it will employ about 50 people when it begins operations this summer. According to the Ohio Department of Development, Hayneedle is expected to generate a $1.4 million annual payroll. Additionally, the site qualifies for a 15-year, 100 percent real estate property tax abatement.
The 721,005-square-foot distribution center at 1001 Logistics Way delivered in September. IDI is aiming for LEED Silver certification for the facility, which it expects to attain in the next six months. Green features include increased natural light, reduced energy consumption, motion-sensor lighting and low-emitting adhesives and sealants.
Situated on an 83-acre site, the Monroe Logistics Center is slated to consist of two facilities. The second building, planned to be about 500,000 square feet, has yet to break ground.
Colgate-Palmolive Signs for 744,331 SF in Metro Atlanta
By Kenneth Hutton
Colgate-Palmolive, a maker of household and personal care products, signed a 744,331-square-foot lease at 2501 Rock House Road in Lithia Springs, GA.
IDI owns the one-story, 744,331-square-foot, Class A industrial building built in 2008. It is about 18 miles west of Atlanta in the Interstate 20/West Douglasville Industrial submarket.
Bradley Pope and Mike Chambers of NAI Brannen Goddard represented Colgate-Palmolive. Lisa Ward was IDI's in-house representative.
MD Attorney General Renews at Saint Paul Plaza
By Heather Berwanger
The Maryland Attorney General signed a 109,635-square-foot office renewal at Saint Paul Plaza in Baltimore, MD. The tenant will continue to occupy its space on floors 16 through 20, as well as part of the 25th floor.
The 28-story, 280,000-square-foot, Class A office building at 200 Saint Paul Place was built in 1986 and is in the CBD Baltimore submarket. Co-tenants in the tower include the Maryland Insurance Administration, the Drug Enforcement Administration and the Chubb Group of Insurance Cos.
Courtenay Jenkins, Kyle Durkee and Richard Thomas of Cushman & Wakefield Inc. represented the landlord, The Kornblatt Co. The tenant did not have broker representation.
Align Technology Inc. fully leased two buildings in Valley Research Centre in San Jose for a total of 129,024 square feet. The Santa Clara-based medical device company signed a 7-year deal. Located at 2560 and 2570 Orchard Parkway, the two-story flex facilities were built in 1999 and measure 64,512 square feet each. Align Technology is relocating its headquarters from 881 Martin Ave. in Santa Clara in June. George Fox and Hamilton Southworth of Studley in Palo Alto represented the tenant. Todd Hedrick of Equity Office Management LLC in San Mateo represented the landlord, Carr NP Properties LLC. (By: Lauren Greenwald)
Barton & Associates Inc., an executive search company, signed a 21,732-square-foot lease to relocate its corporate offices to 10 Dearborn Road in Peabody, MA. The three-story, 42,345-square-foot office building was built in 2001 in the Peabody/Salem submarket. Demetri Koutrouvelis of Studley represented Barton & Associates. Christopher Everest of Nordlund Associates Inc. represented the landlord, One Intercontinental LP. (By: Laura Criswell)
Cardinal Straws signed a lease for 50,539 square feet of industrial space at 5515 W. Fifth St. in Jacksonville, FL. The company produces and delivers a full range of straw products. The property at 5515 W. Fifth St. is a 102,418-square-foot industrial building that was built in 1969. Steve Bates of Studley represented Cardinal. J.R. Richardson, Bryan Bartlett and Dan Stover of Grubb & Ellis/Phoenix Realty Group represented the landlord, Exeter Property Group. (By: Walt Brown)
Centra Technology, a government contractor, signed a 10-year lease for 44,186 square feet in the office building at 4121 Wilson Blvd. in Arlington, VA. The 11-story building totals 175,058 square feet in the Stafford Place II office park. Centra’s lease includes a renewal of 21,986 square feet and an expansion of 22,200 square feet to occupy the second, third and eighth floors. Centra is a high-technology small business providing security, analytic, technical, engineering and management support to the government and private sectors. Brian McMullan of Jones Lang LaSalle represented Centra. Karen O’Gorman of Gates, Hudson, & Associates represented Stafford Circle Associates LLC, the owner. (By: Jacinta Williams)
Cigars International is relocating and expanding its headquarters, signing a full building lease at to 1911 Spillman Drive in the Bethlehem, PA. J.G. Petrucci Co. Inc. (JGPCO) delivered the 113,534-square-foot warehouse this month in the Bethlehem Commerce Center at Lehigh Valley Industrial Park VII. The construction alone created 150 jobs. Cigars International plans to create 50 new jobs, in addition to the 175 Pennsylvania jobs it is preserving from its current, smaller location in Bath. Cigars International is a subsidiary to Stockholm tobacco company Swedish Match. (By: Michael Roerty)
Cincinnati Children's Hospital Medical Center signed a lease renewal for 61,745 square feet of office space at 660 Lincoln Ave. in Cincinnati. The former Ford Factory in the Clifton/Midtown area was designed by Albert Kahn and built in 1915. It was renovated into Class A office space in 2003. The building is adjacent to Cincinnati Children's Oak Campus. Michele Laumer of Carey Laumer Commercial Realty represented the building owner, 660 Lincoln LLC. Broker information for the tenant was not disclosed. (By: George Cerny)
Clarcor Air Filtration Products Inc., an Indiana-based manufacturer, signed a 50,604-square-foot lease for five years in Corona, CA, with Oltmans Investments Co. Clarcor will occupy the entire building. The 50,604-square-foot industrial building is at 2090 California Ave. It is part of an industrial park that was completed in 1990. Previously, Clarcor was located about a mile south on East Ontario Avenue. Joe Maiolo and Jim Litchfield of Inco Commercial Brokers represented Oltmans. Michael Cook, Mark Sergi and Brett Racanelli of UGL Equis represented Clarcor. (By: Tyler Boyd)
Coastal International Logistics has signed a three-year lease for 24,048 square feet at the Miami Free Zone. The 503,000-square-foot warehouse at 2305 N.W. 107th Ave. was built in 1979 in the Miami Airport West Industrial submarket. Coastal International Logistics opened its doors in January 2006 in Jacksonville, specializing in warehousing and transportation. Jennifer Wasmer was the in-house representative for Miami Free Zone. Ed Redlich of ComReal Miami Inc. represented the tenant. (By: Dina Thomas)
Cott Beverage, the world’s largest retailer of brand soft drinks, renewed its 90,000-square-foot warehouse lease at 105 Commerce Drive in Aston, PA, for five years. Located in the I-95 Campus Industrial Park, the 375,500-square-foot facility was built in 1982, and sits on approximately 38 acres of land. Brian Mears, Colin Flynn and Kevin Hagenberg from The Flynn Co. represented the landlord, TA Associates. Jimmy Johnson from CNL Commercial Real Estate represented Cott Beverage. (By: Latricia Miller)
Dependable Distribution Service signed a two-year, 122,000-square-foot lease at 2500 Grant Ave. in Philadelphia. The 330,000-square-foot warehouse was built in 1980 and renovated in 2006. It is in the Greater Northeast industrial submarket. Richard Gorodesky of Colliers Lanard & Axilbund represented Dependable Distribution Service. The Binswanger team of Chris Pennington and Frank Cullen represented the landlord, Sant Properties. (By: Melannie Skinner)
Eagle Moving and Storage, a residential and commercial moving company, closed on approximately 50,000 square feet at 2155 N. Ellis Road in Jacksonville, FL. The warehouse building totals about 117,079 square feet in the Westside Distribution Center. Completed in 1982, EastGroup Properties Inc. owns and manages the industrial complex, which has 20 loading docks and is on 4.6 acres.Patrick Thornton and Christian Harden of Hallmark Partners represented the owner. Bobby Gatling of Grubb & Ellis | Phoenix Realty Group represented Eagle Moving & Storage. (By: Adam Bloom)
Fandango, a Web site frequented by moviegoers for ticket purchases and all things movie related, signed a seven-year lease to renew 17,865 square and expand into 12,135 square feet at 12200 W. Olympic Blvd. in Los Angeles. One of three Class A office buildings in the Westside Media Center, the 150,302-square-foot property won a 2009 BOMA award for "The Outstanding Building of the Year." Fandango will move onto the fourth floor of the property in the second quarter. Hunt Barnett and Chris Houge of Madison Partners represented the landlord, Kilroy Realty. David Toomey and Brian Davies of CresaPartners represented the tenant. (By: Melissa Sicola)
G3 Sportswear signed a 10-year lease at 140 Docks Corner in South Brunswick, NJ. The apparel company is scheduled to move into the entire facility in March. The 583,000-square-foot distribution building was built in 2008 on about 43 acres. It is in the Exit 8A Industrial submarket. Andrew Siemsen, Frank Caccavo, and Jason Goldman from Cushman & Wakefield of New Jersey represented the landlord, BlackRock Inc. David Cantor and Greg Sholom of Team Resources represented G3 Sportswear. (By: Nicholas Hoover)
McKool Smith, an intellectual property law firm, signed a 10-year lease for an additional 16,000 square feet in the office building at 300 W. Sixth St. in Austin, TX. The 23-story building totals 459,085 square feet and is in central business district. The lease includes 16,000 square feet on the 17th and 18th floors. Other tenants include Dechert, PricewaterhouseCoopers and Green Mountain Energy Co. John T. Amend, J.W. Amend and David Amend of The Amend Group represented McKool Smith. Mark Miller and Andy Smith of Thomas Properties Group represented the landlord, Thomas Properties Group Inc. (By: Chatea Coates)
MetLife signed a 25,000-square-foot lease at Corporate Commons II on Staten Island. The insurance provider is taking occupancy in May. The three-story, 174,000-square-foot office building at 2 Teleport Drive was built in 1990 in the Teleport business campus. Lloyd Desatnick with Jones Lang LaSalle represented MetLife. Samuel Stein represented the landlord, The Nicotra Group. (By: Alexis Koutroumpis)
Morgan Lewis signed a 10-year lease for 153,323 square feet at Spear Street Tower at One Market Plaza. The company expanded onto the 30th floor and renewed 132,222 square feet throughout the rest of the building. Morgan Lewis has more than 1,400 lawyers throughout the globe with more than 130 lawyers in the San Francisco office. David Churton of Jones Lang LaSalle represented Morgan Lewis. Wes Powell, Christopher Roeder and Ted Davies represented the landlord, Paramount Group Inc. (By: Ryan Munneke)
NFI Distribution leased 106,000 square feet from First Industrial at 4701 Valley Industrial Blvd. S. in Shakopee, MN. The distribution and warehousing company is relocating operations from New Jersey. The 201,600-square-foot industrial facility, known as the Continental Distribution Center, was constructed in 1997 in the Minneapolis/St. Paul submarket. Jeff Pryztarski of CB Richard Ellis represented NFI. Brian Netz and Bill Ritter of NAI Welsh represented the landlord. (By: Jeff Fertitta)
Nestle Waters North America signed a 164,301-square-foot lease for Building 2 at 900 Long Ridge Road in Stamford, CT. The bottled water producer is relocating its headquarters from 777 W. Putnam Ave. in Greenwich. The 164,301-square-foot office building was constructed in 1982. The building’s current tenant, Oracle, has plans to downsize to the 60,000-square-foot Building 1 at 900 Long Ridge. Judd McArthur of CresaPartners represented the landlord in this deal. (By: Timothy Weber)
Operation Blessing International, a nonprofit humanitarian organization, renewed its lease at 907 Live Oak Drive in Chesapeake, VA. The group occupies the entire building, a 90,000-square-foot industrial building constructed in 1977. Abe Ellis from Thalhimer represented Operation Blessing. Patrick Mumey and Scott Wermers from Tthe same firm represented the landlord, Bellmawr LLC. (By: Cindi Nowak)
Pactiv Corp., a packaging company, signed a lease for about 186,000 square feet in the industrial building at 12801 Jamesburg Drive in Huntersville, NC. TA Associates Realty purchased the 559,760-square-foot industrial property in 2008. The other tenant in the building is Philip Morris and it occupies the rest of the building. Anne Johnson, Bryan Crutcher and David Tropp of CB Richard Ellis represented Pactiv. William Wood and Terry Brennan of Trinity Partners represented TA Associates. (By: Dan Grossman)
Pension Specialists, a retirement plan admistrator, signed a renewal for 16,808 square feet in the office building at 35 Iron Point in Folsom, CA. The three-story building totals 77,825 square feet within the Broadstone Business Center, and its construction was completed in 2001. Tom Heacox and Todd Eschelman of Cornish & Carey Commercial represented the landlords, Anthony and Ruth Macado. (By: Ashley Cook)
Prestige Laundry, a hotel linen cleaning company, signed a long-term lease for 93,000 square feet in the industrial building at 2 Wood St. in Paterson, NJ. The 93,000-square-foot manufacturing facility was constructed in 1910 in the Paterson Industrial submarket. The property was purchased using distressed debt. The new owner took over the mortgages from the previous owner. Gregg Kelman of GK Realty Services represented the new owner, Tulfra Realty, as well as Prestige Laundry. (By: Tara Healy)
Rosetta, a digital interactive marketing agency based in New Jersey, leased 80,000 square feet at 629 Euclid Ave. in Cleveland, OH, in a 10-year lease deal. The company plans to renovate the 11th through 15th floors to create more open workspaces with modern fixtures and glass windows. Rosetta plans to add the 17th floor to create a penthouse office space to accommodate a conference room, training center and a cafe. Renovations have begun and Rosetta will occupy the space in September. Terry Coyne of Grubb & Ellis represented the tenant, Rosetta. DNZ-Dover LLC is the landlord. (By: Kathleen Kline)
Sierra Nevada Corp., a privately held, woman-owned engineering and technology company, signed a three-year agreement to lease 50,000 square feet in two buildings at Centennial InterPort in Englewood, CO. In the first deal, the firm immediately took full occupancy of 8227 Wallace Court, a 13,500-square-foot facility. The second lease was for a 36,500-square-foot facility at 8073 Wallace Court where Sierra Nevada will occupy the Hanger portion of 23,000 square feet immediately while it builds out the office space for tenant improvements. Expected occupancy of the office space is April. Both buildings are in the Centennial Industrial submarket. Iver Retrum was the in-house representative for the landlord, SunBorne Cos. Ness Hamaoui of Cushman & Wakefield in Los Angeles, CA, represented Sierra Nevada. (By: Autumn George)
Trendmaker Homes Inc., a Houston-based homebuilder, signed a 24,069-square-foot lease at Atrium at Park Ten in Houston. The three-story, 139,834-square-foot, Class B office building at 16340 Park Ten Place Drive was built in 1981, and is in the Katy Freeway West submarket. Brad Marnitz and Vince Gyorgy of NAI Houston represented Trendmaker Homes. Doug Little of PM Realty Group represented the landlord, KBS Realty Advisors. (By: Andrea Lester)
Wachovia Bank, a Wells Fargo financial services company, leased 23,717 square feet of office space at 10448-10456 Lakeridge Parkway in Ashland, VA. The 71,230-square-foot building was constructed in 1988. The Lakeridge Industrial Park site contains 10 acres and has direct frontage to Interstate 95. John Carpin and Malcolm Randolph of CB Richard Ellis represented First Potomac Realty Trust. David Wilkins and Joseph Marchetti of the same firm represented the Wachovia Bank. (By: Lauren Cannon)
Wentworth Group is relocating its headquarters, signing a 10-year deal for 15,500 square feet at 17-21 Christopher Way in Eatontown, NJ. The property management services firm expects to take occupancy in second quarter 2010. The 45,000-square-foot flex building was built in 2000 in the Eastern Monmouth Industrial submarket. Jamie Drummond of FirstService Williams represented the tenant. The Donato Group, the landlord, was represented in-house. (By: Danielle Cook)
Whitney Creative Center expanded its lease by one-third to 32,473 square feet at 152-160 Continental Ave. in Dallas. Focusing on students in developing countries, Whitney is the first global university. It fully occupies the 32,473-square-foot industrial building, which was completed in 1981. Cincha Kostman of Hudson Peters represented the landlord, Prescott Interests Ltd. Broker information was not mentioned for the tenant. (By: David Spragg)
Wurth Wood Group signed a 77,110-square-foot renewal in the Route 100 Business Center at 6660 Santa Barbara Road in Elkridge, MD. The 162,000-square-foot industrial building was built in 1975 and is in the Route 1/BWI Howard Industrial submarket. Wurth Wood Group is a distributor and wholesaler of building products for the southeastern United States. The company’s renewal will keep it in the Route 100 Business Park for an additional five years. Ned Brady and Matt Laraway of Cushman & Wakefield represented the tenant. John Boote of NAI KLNB represented the landlord, Fund VI/Kaiser I and III LLC. (By: Heather Berwanger)
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Closures & Layoffs
DST Systems to Reduce Workforce by 7%
DST said Monday that it is planning to cut 7 percent of its workforce, or approximately 700 employees.
The majority of cuts are expected to come in Kansas City, where the information processing and computer software company is based. DST has not confirmed where the layoffs would occur. The company is estimated to employ about 10,000 total employees, with 4,500 in the Kansas City region.
DST, which provides data processing services to the mutual fund companies, cited the economic downturn's effects on the financial markets as the primary reason for the cutbacks. According to the company's fourth quarter earnings report, earnings dropped 17 percent from a year before. Net income for Q4 2009 came to $58.8 million, compared to $70.6 million in Q4 2008.
The company is anticipating a $21 million charge over the course of the year in connection to the layoffs. However, a $67 million reduction in annual pre-tax operating costs is also expected. Additionally, DST has implemented freezes on hiring and management salaries in an effort to control its expenses.
DST stock fell about 12 percent on Tuesday, a day after the job cuts and Q4 earnings were announced. However, Bank of New York Mellon's $2.3 billion acquisition of PNC Financial Services Group, one of DST's top competitors, also likely played into the steep drop-off.
The Cutting Room Floor: Sony Pictures Laying Off 450
Sony Pictures, which made headlines on Tuesday when its films snagged 18 Oscar nominations, is cutting about 450 jobs. The majority of layoffs are slated for March.
In an effort to combat slumping DVD sales, the movie studio is reducing its 6,800-person workforce by 6.5 percent and eliminating about 100 open positions. About half the layoffs are expected to occur in the company's home entertainment and the information technology branches.
"Our industry is affected by two things: It's affected by the economy, of course, and it's affected by technology," Sony Co-Chair Amy Pascal said. "Over the last two years, it's changed people's DVD-buying habits, which has had a huge effect on our company and the industry at large."
With cheaper rental services such as Netflix and Redbox, consumers have become more prone to rent movies than buy them, and the DVD sales market has taken a hit. Studios like Sony count on DVD sales to make back profits lost by films that underperform at the box office.
The new round of job cuts is Sony's second in a year's time. Last March, the movie studio laid off about 250 employees.
| Company | Address | Closure or Layoff | # Affected | Impact Date | | DST Systems | Nationwide | layoff | 700 | 2010 | | Sony Pictures | Nationwide | layoff | 450 | 3/1/2010 | | NYC Off Track Betting Corp. | Statewide | layoff | 1,320 | 3/20/2010 | | Crothall Services Group | 100 Grassland Reservation, Valhalla, NY | layoff | 235 | 2/28/2010 | | Gibraltar Strip Steel Inc. | 2555 Walden Ave, Cheektowaga, NY | closure | 78 | 5/2/2010 | | Middletown Associates LLC | 148 E. 48th St, New York, NY | closure | 79 | 5/4/2010 | | ISK Manhattan/McDonald's | 429 7th Ave, New York, NY | layoff | 74 | 4/12/2010 | | Thompson Reuters | 44 South Broadway, White Plains, NY | closure | 24 | 7/1/2010 | | Harleysville National Bank | 732 Norristown Rd, Maple Glen, PA | layoff | 298 | 3/29/2010 | | PNC Bank | 4100 W 150th St, Cleveland, OH | closure | 33 | 3/30/2010 | | Birds Eye Veneer | 240 South 2nd St, Butternut, WI | closure | 44 | 3/31/2010 | | BCI Coca Cola Bottling Co. | 1333 Glenwood St, Woodland, WA | layoff | 51 | 4/1/2010 | | BCI Coca Cola Bottling Co. | 2100 W 2nd, The Dalles, OR | closure | 7 | 4/1/2010 | | Krispy Kreme Donut Corp. | 10400 Furnace Rd, Lorton, VA | closure | 68
| 3/29/2010 | | West Customer Managment Group | 225 Fox Hill Rd, Hampton, VA | closure | 255 | 4/1/2010 | | American Airlines, Inc. | 400 World Way, Los Angeles, CA | layoff | 80
| 3/13/2010-4/10/2010 | | American Airlines, Inc. | North Terminal, San Francisco, CA | layoff | 16 | 3/13/2010 | | Arvin Sango, Inc. | 2525 Cooper Ave, Merced, CA | closure | 48 | 4/9/2010-5/4/2010 | | CompuCredit Corp. | 5 Concourse Pky, Atlanta, GA | layoff | 203 | 3/31/2010 | | NAL Worldwide | 1551 Perry Rd, Plainfield, IN | closure | 126
| 3/31/2010 | | Visteon | 6900 E English Ave, Indianapolis, IN | layoff | 15 | 3/31/2010 | | Apria Healthcare | 7353 Company Dr, Indianapolis, IN | layoff | 32
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Lease Restructures & Cancellations
Movie Gallery Files Bankruptcy, Closing 800+ Stores
By Sasha Pardy
Late Tuesday night, the country's second largest movie rental chain, Movie Gallery, brought to fruition circulating rumors that it would file Chapter 11.
Like most retailers, Movie Gallery was hit hard from lack of consumer demand during the recession, but in addition, it has been struggling to keep its foothold in a marketplace where consumers can rent movies through so many other outlets -- from mail order to kiosks and direct downloads. On top of this, Movie Gallery is underwater with more than $540 million in debt that was primarily created from its 2005 acquisition of Hollywood Entertainment Corp, which it acquired for $800 million.
This is the second bankruptcy filing for Movie Gallery. The retailer first filed Chapter 11 on October 16, 2007 when it operated 4,430 stores. In May 2008, Movie Gallery emerged from bankruptcy much lighter -- with 3,300 stores.
Since, Movie Gallery has closed another 700 stores; as it reported in Tuesday's Chapter 11 filing that it currently operates 2,600 stores under banners Movie Gallery, Hollywood Video and Game Crazy. Of these stores, 184 are operated by Movie Gallery Canada, which has been excluded from this bankruptcy filing. Movie Gallery reported $1.4 billion in annual revenues (down from $2 billion in 2008) and said 19,082 people are employed by the company.
As part of its reorganization efforts,
Movie Gallery has requested the cancellation of 856 store leases.
Follow this link to download the list, which is weighted with more Hollywood Video closures than Movie Gallery closures. Gordon Brothers Group has been selected to help liquidate the closing stores.
According to CoStar Tenant, the typical Movie Gallery is between 4,000 and 5,000 square feet, while the typical Hollywood Video is between 5,000 and 7,000 square feet.
To review CoStar's prior coverage on Movie Gallery, follow these links:
- Movie Gallery Hires Bankruptcy Attorneys; May Close Another 1,000 Stores, Feb. 1, 2010
- Movie Gallery Closing 200 Game Crazy Stores, Sep. 29, 2009
- Movie Gallery Closing 160 Additional Stores, Apr. 4, 2008
- Movie Gallery Borders on Default, Jul. 9, 2007
- Movie Gallery Taking Scalpel To Another 1,100 Stores, Apr. 20, 2006
ACADIA Pharmaceuticals Inc. has restructured its headquarters lease with RGH Holdings Limited Partnership and terminated an additional lease. The drug company will remain at 3911 Sorrento Valley Blvd. in San Diego, with its rent reduced by 20 percent. However, ACADIA is terminating its lease in the adjacent facility at 3931 Sorrento Valley Blvd. as of February 28.
Six Flags Inc. has rejected its lease at 1540 Broadway in Manhattan, following its Chapter 11 filing in June 2009. The theme park operator is attempting to overcome $2.4 billion in debt. Six Flags' restructuring plan aims to reduce its debt to about $600 million.
Mesa Air Group Inc., one of the largest regional air carriers, filed for Chapter 11 on January 5. After evaluating its commercial space, Mesa Air Group determined that two leases for its Freedom Airlines subsidiary in Georgia and Texas represented an unnecessary expense. By rejecting the leases, Mesa Group estimates it is saving approximately $27,000.
| Company | Address | Affected Parties | Comment | | ACADIA Pharmaceuticals | 3911 Sorrento Valley Blvd, San Diego, CA | RGH Holdings Limited Partnership | 36,000 SF, rent to be reduced by 20% | | ACADIA Pharmaceuticals | 3931 Sorrento Valley Blvd, San Diego, CA | RGH Holdings Limited Partnership | 24,000 SF, terminating 2/28/2010 | | Six Flags, Inc. | 1540 Broadway New York, NY | CB Richard Ellis Investors | 21,500 SF | | Mesa Air Group | 1005 Virginia Ave., Hapeville, GA | Joy Lake Partners, LLP | exp. 5/31/2011, $1,277/mo. | | Mesa Air Group | 5605 N. MacArhur Blvd., Irving, TX | Regus Business Centres Corp. | exp. 2/28/2010, $4,152/mo. |
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