BON-TON STORES ENTERS $18.9 MILLION SALE-LEASEBACK AGREEMENT TO PAY OFF DEBT
The Bon-Ton Stores, Inc. has entered into an agreement for a $18.9 million sale-leaseback transaction for its Herberger’s location at Rosedale Center in Roseville, Minnesota. Proceeds from the transaction will be used to repay outstanding debt.
Upon completion of the sale, Bon-Ton will lease the property for a 20-year initial term with the option to extend the term for four additional successive periods of five years at market rents.
The Herberger’s location at Rosedale Center recently completed a major remodeling and features a new, enhanced shopping environment with several larger departments, updated fitting rooms and brighter lighting to improve the customer experience and drive increased foot traffic.
“We are pleased to announce this transaction as we continue to pursue the opportunities available to us within our real estate portfolio to better position the business for the future,” said William Tracy, president and chief executive officer. “This sale-leaseback transaction unlocks additional capital, enabling us to repay debt and enhances our overall liquidity position. We remain focused on executing our strategic initiatives to drive enhanced performance. Our team looks forward to continuing to serve customers in the Roseville area for many years to come.”
