Monday, March 31, 2014

STORE Capital Acquires Specialty-Use Retail in Emerald Design Center in $9.5433m Sale-Leaseback

By: Paul Dionne |

Main Event Tempe—a bowling alley cum billiard hall and laser tag arena—was sold on Friday to Mike Bennett of Scottsdale-based STORE Capital in a sale-leaseback transaction valuing the property at $9,543,300 or nearly $165 per square foot. Under the terms of the lease, Main Event Entertainment, the seller, will lease the property for fifteen years with three options to extend the lease for an unspecified duration. STORE financed the transaction under an existing debt agreement with Citigroup; the value assigned to his particular note is stipulated to be $11.3m for insurance purposes.

This property, like many in the Emerald Design Center at the northeast corner of Warner and the I-10, was a distressed asset prior to being picked up in late 2012 by Main Event. The original developer bought 11.72 acres within the project in September of 2006 for $7,656,615 or $15 per square foot. Following a split, the dveloper was able to sell a 5.33 acre parcel to Furniture Row in July of 2010 before losing the remainder of his holdings in Emerald Design Center to First National Bank of Hutchinson about three months later, deed-in-lieu. The 6.39 acre parcel was eventually sold to Main Event for $2,046,017 or less than half of the prior per square foot basis.
Main Event built out a 58,000 square foot single-tenant freestanding retail on the site in 2013. The facility features bowling, laser tag, an arcade, billiards, bar and a meeting space. The 399 assigned parking spaces provide 6.879 spaces per 1,000 ft. Main Event is a subsidiary of the Australian company, Ardent Leisure, and has fifteen locations in Arizona, Georgia, Illinois and Texas, where they are based.

For more information on this and all commercial transactions in Maricopa and Pinal Counties, log on to your Vizzda account or contact Vizzda today to schedule a demonstration of our commercial real estate information platform and data. 

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