A former Extell Development executive is getting in on the Saks Global selloff.
Sagehall, a fund managed by one-time Extell chief executive officer Sush Torgalkar, purchased the property at 750 White Plains Road in the New York City suburb of Scarsdale for $80 million, the Commercial Observer reported. The deal for the 200,000-square-foot retail property breaks down to $400 per square foot.
The property was home to a Saks OFF 5th, which closed earlier this year as the parent company worked through bankruptcy, a process that remains ongoing. The deal for the property closed roughly three weeks ago.
The property was also once home to a Lord & Taylor department store, which first opened its doors in 1958. It’s been renovated since then and is 64 percent occupied, counting White Plains Hospital, Cava, Pottery Barn, Williams Sonoma and Equinox as part of the tenant roster.
CBRE National Retail Partners’ Jeffrey Dunne, David Gavin and Travis Langer represented both sides of the deal.
This is the second deal in a matter of months between Sagehall and Saks Global. In October, Torgalkar bought a former Lord & Taylor site in Stamford, Connecticut, from Saks for $62 million.
Last week, a court approved an up to $500 million financing package from creditors to shore up Saks’ liquidity. Under the deal, investors will either be able to buy preferred equity or loan cash to the company, either of which would help the retailer secure further inventory for its stores.
Saks filed for bankruptcy in January, just over a year after it acquired Neiman Marcus in a $2.7 billion deal intended to create a luxury retail heavyweight with the scale to cut costs and stabilize vendor relationships.
The fate of stores under the Saks umbrella — which includes Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman and the discount Saks Off Fifth brand — has been uncertain for months.
In late January, the company announced it would be closing 62 stores in a matter of weeks, all but five of which were Saks Off 5th locations; the other five were Neiman Marcus discount outlets known as Last Call.
Since then, it’s been revealed that the company plans to close a dozen Saks Fifth Avenue stores by the end of next month on top of eight previously disclosed closures, leaving Saks Fifth Avenue with 13 stores remaining nationwide.
It aims to emerge from bankruptcy by the summer.
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