Harps Food Stores Sells and Leases Back 13 Stores

Harps Food Stores Sells and Leases Back 13 Stores Essential Properties CBRE
The 13 Harps Food Stores locations sold to Essential Properties, subject to long-term net leases with Harps, will continue to operate under such Harps-operated banners as Harps Food Stores and 10Box.

Harps Food Stores Inc. has wrapped up a sale-leaseback deal involving 13 grocery stores for $30.1 million, according to a published account.

All of the locations are in Arkansas and Missouri and account for a collective 459,525 square feet, the Northwest Arkansas Business Journal reported. The sites were sold to Princeton, New Jersey-based Essential Properties, subject to new, long-term net leases with Harps and will continue to operate under such Harps-operated banners as Harps Food Stores and 10Box. The sale won’t have an impact on store operations.

Dallas-based commercial real estate firm CBRE, which brokered the deal, has assisted Harps in sale-leaseback transactions worth $110 million since 2015.  

“Harps is employee-owned, and we manage our balance sheet to maximize value for our shareholder-employees,” noted J. Max Van Hoose, EVP of Springdale, Arkansas-based Harps Food Stores. “Working alongside CBRE, the sale-leaseback transaction has been a very effective tool to unlock capital for more efficient uses, including store expansion, as well as to secure long-term low occupancy costs, which leads to higher profitability.”

Harps Food Stores operates 113 supermarkets in Arkansas, Oklahoma, Missouri and Kansas. The company is the largest employee-owned company based in Arkansas and the 20th largest in the United States.

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