Sale of joint venture interest in New Roc City.
Entertainment Properties Trust is the only REIT that specializes in entertainment assets and is the largest owner of entertainment properties in the United States.
The 1.2 million-square-foot New Roc City, which opened in 1999 and includes retail/entertainment facilities, a hotel and rental apartments as well as a 2,350-car parking garage, has proven to be a major catalyst in the emergence of New Rochelle as a dominant force in the southern Westchester economic base.
"The success of New Roc City as a premier destination for family entertainment has put in motion a chain of economic development activities in New Rochelle and we will continue to play a major part in it's continued growth," Cappelli said.
Cappelli pointed out the significance of Entertainment Properties Trust's commitment to New Rochelle. "This is a nationally recognized REIT with a portfolio of over 40 major theater, restaurant and entertainment properties in major cities coast to coast. Their interest in New Rochelle demonstrates significant confidence in a City that is poised for continued revitalization."
Mayor Timothy C. Idoni, whose administration has guided the economic resurgence of New Rochelle, stated: "Louis Cappelli's partnership with Entertainment Properties Trust at New Roc City is further evidence of the rebirth of our downtown.
"This publicly traded national company recognizes New Rochelle's downtown potential as a regional hub for entertainment, retail, office space and housing. We look forward to working with this exciting new team in our central business district."
New Roc Management, a related company of Cappelli Enterprises, will continue to manage New Roc City on behalf of the joint venture. Fully leased, New Roc City is anchored by an 18-screen Regal Cinema, which is typically in the top five highest grossing movie theaters in the New York market, and the top 50 highest grossing theaters in the United States; Stop 'N Shop supermarket; and Ballys Total Fitness Center. Additional tenants include New Roc Fun House, Steiner Sports, New Roc Ice, New Roc Speedway, Modells, New Roc Rack 'N Cue, Putting Edge, New Roc 'N Bowl, Applebee's Restaurant, Zanaro's Italian Restaurant, and the Space Shot Thrill Ride.
The 125-suite Marriott Residence Inn will remain under Cappelli ownership as will the 100-unit Summit at New Roc Apartments.
Commenting on the acquisition, David Brain, President and CEO of Entertainment Properties Trust, stated: "We believe entertainment is an important sector of the retail real estate industry. Our principal business strategy is to be the nation's leading entertainment real estate company, with a major focus on the acquisition of high-quality entertainment related properties with a strong market presence. New Roc City, with its diversity of family entertainment opportunities and proven track record of success, fits perfectly into our portfolio".
Cappelli Enterprises said it will continue its development program in New Rochelle as designated sponsor for Parcel 1A, a 2-acre site located at the comer of Huguenot Street and LeCount Place. Plans have been submitted for a 150,000 square foot retail anchor store with approximately 220 luxury_residential units to be built above. It is anticipated that construction will begin on the $150 million project early 2004.
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|Publication:||Real Estate Weekly|
|Date:||Nov 5, 2003|
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