ABILENE, KS-Duckwall-ALCO Stores Inc. has signed an agreement to sell 11 ALCO retail locations to Escondido, CA-based Realty Income Corp. for $11.2 million. Under the agreement, the locally based retail firm will lease back the properties for a 15-year term and continue their operation under the ALCO name.
Cash proceeds from the sale will be used to repay a significant portion of the retailer's long-term debt, according to Bruce Dale, Duckwall-ALCO's president and CEO. Realty Income specializes in acquiring net-leased properties. In a statement, Tom A. Lewis, CEO, says, "the quality stores, good real estate and operating history, combined with long-term leases" make them "a welcome addition to our portfolio."
A spokeswoman for the buyer deferred all other questions regarding the properties to Duckwall-ALCO. The retailer failed to provide information on the locations and aggregate square footage of the stores before GlobeSt.com's deadline.
The variety store chain operates 254 stores across 21 states. They are primarily located in smaller communities throughout the central US.
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