REX Stores

Portfolio Transaction (Retailer)

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Summary

  • Acquisition Date – April 2007

  • Location – 27 States (concentrations in FL, NY, SC, TX)

  • Value-Add Opportunity – Portfolio Transaction (Retailer)

  • Size – 1 million sq. ft.

Opportunity

  • 87 store portfolio acquisition from REX (NYSE: RSC)

  • 40 stores leased back to REX, 37 vacant, 10 leased to 3rd party tenants

  • Stand-alone boxes predominantly located within major retail concentrations, adjacent to Wal-Marts or outparcels to malls

  • Acquired portfolio for $76 psf.; implied cap rate of approx. 11% on
    50 leased locations

  • Coventry option to terminate any/all of REX’s remaining leases

Value Added

  • Off market transaction - existing relationship with REX CEO

  • Citigroup appraised the assets at $129 million (vs. $77 million cost)