The Metro Vancouver Retail Thread

[jollyburger]

Originally Posted by s211

Whoh. Hopefully there has been a Plan B as a contingency.

Does QuadReal get a refund on the money they fronted HBC to do renovations on their new store?

[officedweller]

Originally Posted by jollyburger

Does QuadReal get a refund on the money they fronted HBC to do renovations on their new store?

That would probably be covered in their termination agreement.
If QualReal bought out their lease, I'd expect a credit back for unused leasehold improvements, but those are often payable on milestones like getting a building permit, or as a reimbursement on issuance of an occupancy permit, so no funds have likely changed hands.

[NewfBC]

HBC received $151 million to modify their lease when it was decided to close the centre and relocate the store. Now that they've bailed on their lease, I wonder if the developer wants that money back...

https://www.hbc.com/news/article/hbc-agrees-to-amend-hudsons-bay-lease-at-oakridge-centre/

Ron.

[jollyburger]

Originally Posted by officedweller

That would probably be covered in their termination agreement.
If QualReal bought out their lease, I'd expect a credit back for unused leasehold improvements, but those are often payable on milestones like getting a building permit, or as a reimbursement on issuance of an occupancy permit, so no funds have likely changed hands.

HBC (TSX: HBC) today announced that it has entered into an amendment to its lease for the Hudson's Bay location at Oakridge Centre in Vancouver, BC. In exchange for certain concessions and approvals related to the redevelopment of Oakridge Centre, HBC has received $151.5 million, which has been used to repay borrowings on the Company's revolving credit facility. As part of the amendment, HBC agreed to relocate Hudson's Bay to a new location within the redeveloped Oakridge Centre, where it will remain a retail anchor and pay similar rent as its existing lease. Construction of the new location is expected to be completed in 2022, at which time HBC will receive an additional $21 million to outfit the new store, which is expected to open in 2023.

Maybe they forgoed the $21 million.

https://www.hbc.com/news/article/hbc-agrees-to-amend-hudsons-bay-lease-at-oakridge-centre/

[officedweller]

Probably, but they would have received funds for the buyout of the lease.
QuadReal would stand to gain since HBC was probably grandfathered under a nominal lease rate from Woodward's who originally built Oakridge.

[jollyburger]

Originally Posted by officedweller

Probably, but they would have received funds for the buyout of the lease.
QuadReal would stand to gain since HBC was probably grandfathered under a nominal lease rate from Woodward's who originally built Oakridge.

And throw in that they aren't a great anchor either.

[LeftCoaster]

The lease termination payment is not getting refunded.

I don't know how Quadreal structures their TIA payments but there is no way the Bay is getting anything there.

[Capitol Hill]

So when the dust settles, is QuadReal pleased that HBC pulled out or does this really put a spanner in the works. Isn’t the mall supposed to open next Spring?

[teriyaki]

Originally Posted by Capitol Hill

So when the dust settles, is QuadReal pleased that HBC pulled out or does this really put a spanner in the works. Isn’t the mall supposed to open next Spring?

Massive opportunity for Quadreal in my opinion. A little bit more work short-term for the leasing team, but we all knew HBC is as weak as they come in terms of being a destination draw.

[jollyburger]

Originally Posted by Capitol Hill

So when the dust settles, is QuadReal pleased that HBC pulled out or does this really put a spanner in the works. Isn’t the mall supposed to open next Spring?

Seems doubtful. Over on the Oakridge Park thread someone said Safeway is planning for a Summer opening. Personally I think some of the towers are at least 3 months behind and that's with no real evidence that it's picked up again.

[NewfBC]

Originally Posted by connect2source

Have to agree but in person it appears very open to Robson with great sight-lines into the store.

Lot of interior photos via the Daily Hive piece :

https://dailyhive.com/vancouver/adidas-robson-burrard-vancouver-flagships-store-open

Checked out the new Adidas store on Sunday. When they announced this they mentioned it would have some unique 'experience sections'... the finished product, nothing of the sort. It's just a large store.. a nice store, but nothing really special.

Ron.

[LeftCoaster]

Originally Posted by jollyburger

Seems doubtful. Over on the Oakridge Park thread someone said Safeway is planning for a Summer opening. Personally I think some of the towers are at least 3 months behind and that's with no real evidence that it's picked up again.

Very doubtful that happens. Unless Safeway has a separate occupancy than the rest of the retail, the mall is not going to be ready for summer occupancy. Least of all the SE corner which is home to the furthest behind towers due to the unfortunate fatality incident there.

[whatnext]

Originally Posted by connect2source

Hudson's Bay will not be opening in Oakridge Park. I wonder if Simons is considering it and perhaps that's why they've been holding-off on any decision regarding the former Nordstrom space?

*just noted that this is also posted in the Oakridge Park thread

https://retail-insider.com/retail-inside...ger-part-of-oakridge-park-redevelopment/

No mentioned here is that HBC claims that since they won't be going ahead with Oakridge they'll be reinvesting in the downtown flagship:

...Asked what prompted the change of plans, HBC spokesperson Tiffany Bourré said in an email that the company continuously looks at opportunities to optimize its real estate portfolio.

She says the company instead plans to serve the Vancouver community by investing in and redeveloping its flagship location on Granville Street in downtown Vancouver....

https://www.biv.com/news/real-estate/hbc...-park-redevelopment-in-vancouver-9877537

[jollyburger]

Originally Posted by whatnext

No mentioned here is that HBC claims that since they won't be going ahead with Oakridge they'll be reinvesting in the downtown flagship:

...Asked what prompted the change of plans, HBC spokesperson Tiffany Bourré said in an email that the company continuously looks at opportunities to optimize its real estate portfolio.

She says the company instead plans to serve the Vancouver community by investing in and redeveloping its flagship location on Granville Street in downtown Vancouver....

https://www.biv.com/news/real-estate/hbc...-park-redevelopment-in-vancouver-9877537

That seems unlikely considering their redevelopment project entails office space on top of their building.

[LeftCoaster]

Well they're going to be taking their entire Oakridge budget and putting it into the downtown location.

Unfortunately that budget was $50.00.

[whatnext]

Originally Posted by jollyburger

That seems unlikely considering their redevelopment project entails office space on top of their building.

Isn't that basically dead for the foreseeable future at this point?

[idunno]

Originally Posted by LeftCoaster

Well they're going to be taking their entire Oakridge budget and putting it into the downtown location.

Unfortunately that budget was $50.00.

$50 would be more than HBC has spent on the Bay downtown in years.

[jollyburger]

BC Ferries is dumping their retail space in the Fairmont Pacific Rim.

https://marcusmillichap.ca/property-sear...s%2Fb%2Fc2b2qhgu21%2Fc2b2qf7cwn%23903687

[jollyburger]

There's one empty CRU for 950 Granville. The current retail list:

Doner Kebab
Pizza Garden
Rice & Noodle
Taco Bell
KFC

https://marcusmillichap.ca/property-sear...Fc2b2qf5r5q%2Fretail%2Fpage%2F2%23803857

[jollyburger]

I wonder if they could get close to that $675 million dollar figure that was floated when they wanted to sell the downtown location.