Slate Retail REIT and Wheeler Real Estate Investment Trust Inc. in separate releases disclosed deals that were secured in light of Southeastern Grocers LLC's filing for a prepackage Chapter 11 bankruptcy.
Wheeler REIT said 19 of its stores in Alabama, South Carolina, Georgia and Florida covering about 721,612 square feet of space are occupied by Southeastern Grocers' Winn-Dixie Stores Inc., BI-LO LLC and Harvey's. As such, 17 of the affected lease agreements have been altered — with the modifications including term and rent adjustments, and deferred landlord contributions for remodels and recaptures — subject to and dependent upon the approval of the bankruptcy court.
The shopping center real estate investment trust added that five stores are expected to be recaptured, and it has chosen to recapture four: Ladson Crossing, Saint Matthews, South Park and Tampa Festival. It added that it is in early talks with two grocery operators to replace the space that BI-LO is leaving at the REIT's Cypress Shopping Center in South Carolina. Three of the leases are expected to be recaptured April 30, with the last one becoming effective June 30.
Wheeler REIT also said it received about $590,000 from the lease terminations. It expects initial annualized base rent to take a roughly $2.5 million hit, which it hopes to reduce to less than $1.5 million when it secures new tenants for the recaptured locations.
Slate Retail, on the other hand, said none of its 10 properties in South Carolina and Florida anchored by Winn-Dixie or BI-LO are expected to see closures. However, it entered into conditional lease amendments such as extending small rent reductions at six properties and making changes to certain leases with Southeastern Grocers.
The Canadian shopping center REIT said the amendments will become effective upon Southeastern Grocers' successful restructuring.
