Red Mountain Group Closes 20-Property Deal

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Feb 08, 2023, 10:22 ET

SANTA ANA, Calif., Feb. 8, 2023 /PRNewswire/ -- Red Mountain Group, Inc., a privately owned Orange County, CA based leader in the nationwide retail redevelopment industry, has purchased 20 empty, fee-simple, retail big box stores in a $47.5MM all-cash, off-market deal from Big Lots Stores, Inc.

Summary of Deal:

Highland, CA Big Lots. Red Mountain Purchased this property as part of a 20-property portfolio acquisition.

Red Mountain Group purchased 20 recently vacated Big Lots retail buildings located in 20 different cities in 4 states.
16 of the 20 empty retail buildings are located in Northern and Southern California.
Total building square footage is 463,427 SF.
The portfolio included an additional 3.5 Acres of land for future retail pad development.
The entire buy/sell transaction closed in 90 business days from start to finish (Holidays included).
This was a 100% equity, all-cash, no financing transaction.

Even with interest rates spiking 200 bps, and despite the current challenging economic environment, Red Mountain's Leasing Team executed 8 major tenant leases prior to the close of escrow. These signed national credit, major tenant leases ensured Big Lots Stores, Inc. a successful sale allowing the achievement of their targeted fiscal year end goals.

Big Lots and Red Mountain Group's Brenda Benter and Graham Allchorn have maintained a collaborative and highly productive long-term deal-making relationship for many years. Due to this successful relationship, along with Red Mountain Group's longstanding reputation for being able to close complex projects like this in very limited time frames, Big Lots selected Red Mountain Group over other qualified buyers to purchase these assets.

Red Mountain Group has previously purchased 5 similar retail portfolios of this size from both publicly owned retailers and private equity firms. "With our sustainable debt and equity, we are able to execute portfolio deals of this magnitude. We have been, and continue to be, a reliable liquidity resource for both private owners and public retailers that own their real estate. For the past 31 years, we have been able to execute on this business plan regardless of market conditions." said Michael Mugel, Red Mountain Group's CEO.

According to Carl Roude, Red Mountain Group's President, and Chief Investment Officer, "I think there are few other organizations that can execute on a transaction of this complexity and size within the time constraints needed by this seller to achieve their goals."

For leasing information regarding these properties and others, please contact Kristin Ambrose or Brenda Benter or via the website and social media: https://www.redmountaingroupinc.com/

Red Mountain Group, Inc. is a privately held retail re-developer with a portfolio encompassing 5.65 million square feet of commercial retail development with a current value of over $1.5B dollars with over 125 assets in 22 states. Red Mountain Group, Inc. was founded in 1999 by Mr. Michael H. Mugel. The company is headquartered in Santa Ana, California, with an additional office in Phoenix, Arizona. Red Mountain Group can be found online on LinkedIn, Facebook, Instagram, and at www.RedMountainGroupInc.com