Sears buyer Seritage weighing strategic plans, possible sale

New York-based REIT has interests in 170 properties totaling 10M sf

National /
Feb.February 28, 2022 05:00 PM

Seritage CEO Andrea Olshan and Seritage Chairman Edward Lampert (Getty, Andrea Olshan by Michael McWeeney)

Nearly five years after Sears filed for bankruptcy, the company it spun off in the process is reportedly weighing its own fate.

Real estate investment trust Seritage Growth Properties is considering strategic alternatives, including a sale of the company, people familiar with the matter told Bloomberg. The New York-based REIT is reportedly working with Barclays on the plans for the trust’s future.

Plans aren’t finalized and could be reeled in at any time, Bloomberg noted. Seritage, however, is reportedly open to either a full sale of the company or a sale of its assets, piece by piece.

The company has interests in 170 properties, spanning approximately 10 million square feet of gross leasable area. As of the close of the market on Feb. 25, the REIT had a market value of about $402 million and its shares have dropped approximately 54 percent year-over-year.

While private equity firms and real estate companies could snap up Seritage, Bloomberg reported another potential buyer is company chairman Eddie Lampert. The former Sears CEO has a 22.1 percent interest in the company with about 9.3 percent of Class A shares as of the third quarter.

Seritage was formed with the acquisition of a retail portfolio from Sears in 2015, three years before the department store filed for bankruptcy. Andrea Olshan stepped down from her executive post at Olshan Properties one year ago to become CEO of the company. 

Bloomberg reported in June that Seritage was looking to unload 40 to 50 former Sears properties to generate cash and help the REIT concentrate on redeveloping its remaining sites. Olshan wanted to liquidate those assets so the company would have time to recruit tenants and redevelop sites.

Looming over Seritage is a $1.44 billion loan from Berkshire Hathaway. The loan has been renegotiated, according to Bloomberg, but is still set to mature in 2025.

[Bloomberg] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    Legion Investment Group's Victor Sigoura and 26 East 84th Street (Getty Images, Google Maps, iStock)
    Old-guard landlords cash out in Manhattan, Bronx multifamily deals
    Old-guard landlords cash out in Manhattan, Bronx multifamily deals
    Ben Shaoul and 1457 North Main Street (Getty, LoopNet)
    Ben Shaoul plans 376-unit complex near L.A.’s Chinatown
    Ben Shaoul plans 376-unit complex near L.A.’s Chinatown
    CHIP executive director Jay Martin (LinkedIn, iStock / Photo illustration by Priyanka Modi)
    Landlords called it: Vacancy rate jumps, rent-stabilization stays
    Landlords called it: Vacancy rate jumps, rent-stabilization stays
    331 Elmora Avenue and 103 Ryan Street (Kislak Realty)
    Tri-state deal roundup: Multifamily, industrial still hot
    Tri-state deal roundup: Multifamily, industrial still hot
    From left: Vice Media CEO Nancy Dubuc, Rudin’s CEO and co-chairman Bill Rudin, and Dock 72 (Getty Images, S9 Architecture, Rudin Management, iStock)
    Vice scraps move to Rudin’s Dock 72
    Vice scraps move to Rudin’s Dock 72
    From left: Metro Loft Management founder Nathan Berman, Silverstein Properties chairman Larry Silverstein, and 55 Broad Street (Metro Loft, Silverstein Properties, LoopNet)
    Silverstein, Metro Loft pick up Rudin’s 55 Broad Street for $180M
    Silverstein, Metro Loft pick up Rudin’s 55 Broad Street for $180M
    1552-1560 Broadway and Wharton Properties’ Jeff Sutton (Google Maps)
    Investor claims Jeff Sutton cheated him out of millions on Times Square deal
    Investor claims Jeff Sutton cheated him out of millions on Times Square deal
    Burberry's Jonathan Akeroyd with 11 West 42nd Street (Getty, Google Maps, iStock)
    Burberry sews up deal at Tishman Speyer building
    Burberry sews up deal at Tishman Speyer building
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...