HOUSTON—AmREIT has executed a lease amendment with Champps Entertainment of Texas, Inc. for the Champps casual dining restaurant location in AmREIT’s Uptown Park shopping center in Houston.
Champps’ parent company, F&H Acquisition Corp., filed bankruptcy on December 15. At the time of the bankruptcy filing, F&H operated 35 Champps restaurants, 50 Fox & Hound sports bars, and 16 Bailey’s Sports Grills. On February 28, F&H Acquisition Corp. won bankruptcy court approval for a $125 million sale to junior lenders led by Cerberus Business Finance.
The amended Champps lease at Uptown Park provides AmREIT with increased control of the parking areas adjoining Champps to facilitate the ongoing redevelopment of Uptown Park. The amended lease also provides for a reduction in the remaining lease term from five years to two years (February 2016) and established a reduced annual base rental rate as the greater of 11% of gross sales or $418,000. The rental reduction was granted to give AmREIT and Champps time to assess options for downsizing and/or relocating the existing restaurant within Uptown Park.
“We are delighted to have created a ‘win-win’ transaction with Cerberus,” said Kerr Taylor, AmREIT CEO. “Champps is able to continue to operate their successful store in Uptown Park – perhaps the top mixed use project in the state of Texas – and AmREIT may now accelerate its redevelopment plans for this best of class site within the 17-acre project.”