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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