Last edited 10:38 a.m., Jan. 28, 2015Several area Price Cutter stores have new landlords as former Price Cutter parent Roswil Inc. is busy cashing in its physical assets.
Commercial real estate broker Mike Fusek said Sperry Van Ness/Rankin Co. brokered the sale of four Price Cutter properties last month to a publicly traded real estate investment trust. Fusek said the buildings were sold together at their full list prices, valued at over $14 million, and the long-term leases with Price Cutter remain in place.
The four properties sold were at 708 S. Elliott Ave. in Aurora, 1013 U.S. Highway 60 in Republic and 1901 E. Division St. – each around 46,000 square feet – as well as 2021 W. Republic Road, the largest of the properties, at 67,355 square feet.
According to the Greene County recorder’s office, Roswil earlier this month requested the deeds of the Springfield properties transfer to Realty Income Properties 30 LLC. Maryland-based Roswil, the former owner of Price Cutter, was looking to liquidate its real estate holdings in the area when it first listed nine properties together with Fusek in 2012, according to Springfield Business Journal archives. Realty Income Properties 30 is a division of Escondido, Calif.-based Realty Income Corp. (NYSE: O), a REIT that owns some 4,200 properties, mostly in net lease agreements with such tenants as Walgreens, Dollar General and FedEx.
Fusek said the operators of the REIT were enticed by leases with Price Cutter that run through 2020 to 2025, with five-year options on each.
“You have a great tenant, and everybody needs groceries,” Fusek said.
The deal comes as Price Cutter itself entered an agreement to purchase the property and equipment connected to four Dillons stores in town. After nearly four decades in Springfield, Dillons announced Nov. 4 it was closing its four Queen City stores by year’s end. The last day for employees is scheduled Jan. 3, a Dillons spokeswoman previously told Springfield Business Journal.
Price Cutter officials have not said how they will utilize the associated assets. Erick Taylor, president and CEO of Price Cutter parent company Pyramid Foods, did not respond to interview requests by press time.
According to a statement released last month through public relations firm Fasone Partners – which also did not respond to requests for information – Price Cutter officials were considering how they should move forward.
“We are currently assessing new store concepts, conducting market research and evaluating community needs. At this time, no decisions have been made,” Taylor said in the statement.
As for Sperry Van/Ness Rankin Co., the commercial brokers list over $22 million worth of properties leased by Price Cutter:
- 335 N. Nolting Ave. (West Bypass and Chestnut Expressway), $6.17 million, 52,772 square feet, and 1720 W. Grand St., $2.79 million, 50,466 square feet;
- Monett, $3.13 million, 46,620 square feet;
- Ponca City, Okla., $1.29 million, 42,000 square feet;
- Waynesville, $6.5 million, 124,934 square feet; and
- Webb City, $2.56 million, 50, 098 square feet.
In addition, Sperry Van Ness/Rankin lists the former site of the Nevada Ramey’s store, which was operated by Pyramid Foods until 2013. That 45,000-square-foot vacant building is selling for $2.25 million, and Pyramid’s master lease on the building runs through 2025.
Fusek also last month sold another of Roswil’s former Price Cutter stores, at 2851 W. Republic Road, for an undisclosed amount. Organized in late September as 2851 W. Republic Rd. LLC by Dylan Christopher Jones, of Ozark, the buyer leases a portion of the property to Planet Fitness.[[In-content Ad]]
