A couple of New York investment firms are designing the purchase of more than 75 Shopko stores and the headquarters of bankrupt retailers and will seek to lease, redevelop or sell the properties.
The properties include 25 in Wisconsin. At least 14 of them have been purchased, for a total of $ 67 million, records published by the State Department of Taxation. Prices and other information about the remaining 11 Wisconsin plots were not publicly available on Friday.
Investors are also buying Shopko and Shopko Hometown stores in 13 other states.
They participate in the acquisitions and commercialization of properties Monarch Alternative Capital, which specializes in debt in distress, and Raider Hill Advisors, a real estate advisory and investment firm.
Monarch is the principal investor in Heartland Hill Properties, the entity that will have a portfolio of approximately 5.5 million square feet of real estate. Raider Hill will oversee the lease or sale of the properties, the company announced.
Heartland Hill is buying the properties of an entity created by what is now Spirit Realty Capital Inc., a Dallas-based real estate investment trust. Spirit purchased more than 130 Shopko locations for $ 815 million in 2006 and leased them to the owner of Shopko, Sun Capital.
Shopko filed for bankruptcy protection on January 16 and sought to reorganize as a regional retailer with a smaller footprint. But after not finding an investor to finance a reorganization, the company said in mid-March that it would close all its stores and liquidate its badets. The last stores are expected to close in June.
The $ 67 million that New York investors have spent on Shopko properties in Wisconsin so far includes $ 6.9 million for the Ashwaubenon headquarters.
Also included in the total, records show, $ 31.3 million for a single Shopko store in Racine. The price recorded is much higher than that of the other Wisconsin Shopko stores, which sold for $ 1.5 million to $ 5.6 million.
A Raider Hill executive refused to answer questions on Friday about purchases.
Each of Wisconsin's 14 purchases to date was made by a recently registered and separately registered limited liability company. All companies share the same New York address as Raider Hill.
Contact Rick Romell at (414) 224-2130 or [email protected] Follow him on Twitter at @RickRomell
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