SRG - Seritage Growth Properties

[LongTermView]

1 million square feet of office space planned for Dallas.

https://www.dmagazine.com/commercial-real-estate/2017/12/former-sears-at-valley-view-mall-to-become-office-campus/

Wow, that's quite a change going from around 235k gla to around 1 million.

[scorpioncapital]

And the Santa Monica property is being developed for 50 million - http://www.latimes.com/business/la-fi-sears-santa-monica-20171126-story.html

[BTShine]

Does anyone have an estimate of what the Santa Monica property will lease for and what the property will be worth after redevelopment?

[AJB96]

Seritage's Dallas Midtown property is part of Dallas's proposal for Amazon's second headquarters:

"Dallas Midtown was one of the North Texas proposals being offered up by the Dallas Regional Chamber as a potential site for Amazon.com's HQ2 campus. In September, Dallas Midtown stakeholders — including Seritage and KDC — unveiled a proposal for a 100-acre urban campus next to 'Amazon Park,' within the planned project."

Source: https://www.bizjournals.com/dallas/news/2017/12/05/seritage-kdc-office-campus-dallas-midtown.html

Dallas appears to be the favorite for Amazon HQ2:

http://www.wsj.com/graphics/amazon-headquarters/

[bci23]

Does anyone have an estimate of what the Santa Monica property will lease for and what the property will be worth after redevelopment?

The article in the post before yours says 50k sq ft and that Santa Monica office space is commonly at $6/sq ft/month or $72/sq ft/yr so that would say $3.6m/yr of rent. 4% cap rate would say building is worth $90m or something.

[bci23]

1 million square feet of office space planned for Dallas.

https://www.dmagazine.com/commercial-real-estate/2017/12/former-sears-at-valley-view-mall-to-become-office-campus/

Wow, that's quite a change going from around 235k gla to around 1 million.

Has anyone looked through the portfolio or asked management about how many massive Sq Footage expansion opportunities exist such as this example?

[SlowAppreciation]

https://www.wsj.com/graphics/lampert/

[koshigoe]

saw the shelf registration today and prospectus for preferred. looks like they are starting the process of restructuring the capitalization

[scorpioncapital]

For the Dallas property?
The more I look at SRG I see why Buffett bought a tiny stake. He's smart.
It's classic don't bet on the jockey, bet on the opportunity.
It's like herding sheep. Have you noticed the accelerated rate of development? It's like Lampert has no choice. Buffett saw this before no doubt. Bet on the constraint and natural, unavoidable trend and it doesn't matter even if a monkey is running it

[HalfMeasure]

saw the shelf registration today and prospectus for preferred. looks like they are starting the process of restructuring the capitalization

Could be spun either way: i) good opportunities to allocate capital @ a rate above the cost of preferred equity, positive sign; or ii) need capital to expedite re-tenanting due to Sears closures - it just depends on how Mr. Market feels. Given the tough REIT environment, I wonder what the market appetite will be for the preferred and what kind of a rate they'll be able to issue them at.