Thursday, November 20, 2008
Mervyn's Bankruptcy Leases for Sale
One of Mervyn's greatest assets is the leaseholds it has in prime retail locations in Arizona, California, Nevada, Utah, New Mexico and Texas. These leases have value because most of them are significantly under market and some are held for decades into the future. The fast approaching bid deadline is currently scheduled for December 5, 2008. For sale are 154 leases in the 6 states. A couple Bay Area leases are highlighted below:
375 N. Capitol, San Jose, 70,000 sqft, through 2020, rent $9.85 per year
749 E. Calaveras Blvd, Milpitas, 75,000 sqft, through 2041, rent $18.51 per year
1500 Del Monte Center, Monterey, 81,000 sqft, through 2040, rent $1.22 per year
950 W. Hamilton Ave, Campbell, 75,000 sqft, through 2019, rent $2.21 per year
350 Showers Drive, Mountain View, 64,000 sqft, through 2010, rent $2.55 per year
2675 Geary Blvd, San Francisco, 90,000 sqft, through 2047, rent $24.95 per year
880 Mowry Ave, Newark, 82,000 sqft, through 2049, rent $12.23 per year
Yes those rents are very low - take the Monterey building for example, they are paying approximately TEN CENTS per foot per month and they have control of the building for another 32 years!
If you want to make an offer on any of these. Give me a call ASAP.