United Development Co. of Southlake has acquired 11 movie theaters in eight states, completing a $40 million acquisition that includes several Texas locations.
The deal sees United Development repurpose several of the properties, with UA Fossil Creek Stadium 11 in Fort Worth and UA Galaxy Theater 10 in Dallas to remain open. UA Grand Prairie 10 theater in Grand Prairie will close in early 2016 and be redeveloped as a retail center with a grocery store and restaurant as anchor tenants.
Of the 11 theaters, three are in Texas. They are UA Fossil Creek Stadium 11 in Fort Worth, UA Grand Prairie 10 in Grand Prairie and UA Galaxy Theater 10 in Dallas.
Other properties in the 109-screen portfolio are located New York, New Jersey, Mississippi, Louisiana, North Carolina, Oklahoma and Colorado. Limited lease terms remain on each location, with United Development restructuring new, long-term leases for four of the 11 properties.
Three of the new-lease properties will operate as United Artist Theatre Circuit Inc. theaters, with one operating as Cinemark’s new upscale theater brand.
Players in the joint venture are United, ALA Holdings of Los Angeles and Iron Point Real Estate Partners III LP of Washington, D.C. Arranging $27.877 million in financing for a two-year, floating-rate loan through CapitalSource was HFF Inc., a mortgage banking firm.
United Development Co., through its investment platforms, has managed more than $500 million of real estate investments in the last 15 years. More information is available at www.UDCGlobal.com.