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.

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