CEDAR HILL, TX-With just four months of down time, Kite Realty Group Trust has backfilled one of two holes arising from the aftermath of Ultimate Electronics Inc.'s Chapter 11 bankruptcy. Cedar Hill Village's 32,231-sf vacancy has been leased to 24 Hour Fitness Worldwide Inc., which plans to open doors in January 2006.
According to a recent SEC filing, Kite raked in an average $19.53 per sf in rent from the Thornton, CO-based Ultimate Electronics until May 31 on the Cedar Hill property and until June 30 for its Galleria Plaza space. Kite's 44,262 sf of class A retail space at Cedar Hill Village at 213 N. Highway 67, anchored by a corporate-owned JCPenney's freestanding store, returns to 100% occupancy with the 24 Hour Fitness pact. Kite's execs weren't available for an interview, but a spokeswoman hinted another announcement is on its way.
Kite bought Cedar Hill in late June 2004 for $6.8 million. Ultimate Electronics filed Chapter 11 seven months later.
"While we were disappointed that Ultimate Electronics rejected its lease with us, we are pleased to secure 24 Hour Fitness at a comparable lease rate, validating the quality and location of the real estate," John A. Kite, president and CEO of the Indianapolis-based firm, says in a press release.
24 Hour Fitness, founded in 1983 in Minneapolis, was bought in June by Forstmann, Little & Co., a venture capital firm from New York City. The fitness operator, with 330 clubs in 16 states, now uses San Ramon, CA as its corporate location.
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