Seritage Growth Properties Signs 123,000 Square Foot Lease with Amazon at The Collection at UTC

Rhea-AI Summary

Seritage Growth Properties (SRG) announced that Amazon (AMZN) has signed a lease for 123,000 square feet at The Collection at UTC in La Jolla, California. This deal is expected to create over 700 corporate and tech jobs.

The Collection at UTC is 93% leased and includes 212,000 square feet of Class A office and retail space. This marks Seritage's largest office lease to date and is part of a broader vision to develop tech and life science hubs within their property portfolio.

Positive

• Amazon's lease is expected to create over 700 jobs.
• The Collection at UTC is now 93% leased.
• This is Seritage's largest office lease to date, indicating strong demand for its properties.

Negative

• None.

Amazon to Occupy Two Full Floors of the Property

NEW YORK--(BUSINESS WIRE)-- Seritage Growth Properties (NYSE: SRG) (the “Company”) a national owner and developer of 170 residential and mixed-use properties, and Invesco Real Estate, a global real estate investment manager, today announced Amazon.com, Inc. (NASDAQ: AMZN) (“Amazon”) has signed a lease for 123,000 square feet at The Collection at UTC in La Jolla, California, with plans to create more than 700 corporate and tech jobs over the coming years. The Collection at UTC is now 93% leased.

The Collection at UTC is a premier mixed-use project comprising approximately 13 acres and 212,000 square feet of Class A office, retail and restaurant space. Amazon will occupy the entire top two floors of The Collection, joining a diverse group of world-class tenants that includes Williams Sonoma, Pottery Barn Kids, Pacific Catch, CB2, Blue Bottle Coffee, Ideal Image, Madison Reed and more. The Collection represents a reimagining of former department store space into a dynamic array of uses and experiences that will define 21^st century work and leisure. It is the first step in a multi-pronged vision to activate the broader site for a world class campus that includes life sciences, tech and residential uses.

“Amazon’s commitment to The Collection is a testament to the quality of the asset and its exceptional location. We will continue to partner with the city of San Diego as we expand The Collection to create more spaces for the community, its residents and businesses to interact,” said Andrea Olshan, President and Chief Executive Officer. “This agreement marks our largest office lease to date, is a significant step toward achieving our vision of The Collection as a premier mixed-use destination and is symbolic of the larger opportunity to create tech and life science hubs within our portfolio.”

About Seritage Growth Properties

Seritage is principally engaged in the ownership, development, redevelopment, management and leasing of diversified and mixed-use properties throughout the United States. As of December 31, 2021, the Company’s portfolio consisted of interests in 162 properties comprised of approximately 19.2 million square feet of GLA or build-to-suit leased area (approximately 17.2 million at share), approximately 3.9 million of which is held by unconsolidated entities (approximately 1.9 million at share), approximately 600 acres held for or under development and approximately 9.4 million square feet of GLA or approximately 800 acres to be disposed of.

About Invesco Real Estate

Invesco Real Estate is a global leader in the real estate investment management business with $91.8 billion in real estate assets under management, 582 employees and 21 regional offices across the U.S., Europe and Asia (as of December 31, 2021). Invesco Real Estate was established in 1983 and today invests across the risk return spectrum, from core to opportunistic; in equity and debt; listed and direct; locally and globally. Invesco Real Estate is a business name of Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco Ltd. Invesco Ltd. is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; http://www.invesco.com.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that could cause or contribute to such differences include, but are not limited to: declines in retail, real estate and general economic conditions; competition and related challenges in the real estate and retail industries and the ability of the Company’s top tenants to successfully operate their businesses; failure to achieve expected occupancy and/or rent levels within the projected time frame or at all; the Company’s historical exposure to Sears Holdings and the effects of its previously announced bankruptcy filing; the litigation filed against the Company and other defendants in the Sears Holdings adversarial proceeding pending in bankruptcy court; risks relating to redevelopment activities and potential acquisition or disposition of properties; the process and results of the Company’s review of strategic alternatives; the impact of ongoing negative operating cash flow on the Company’s ability to fund operations and ongoing development; contingencies to the commencement of rent under leases; environmental, health, safety and land use laws and regulations; the terms of the Company’s indebtedness and availability or sources of liquidity; possible acts of war, terrorist activity or other acts of violence or cybersecurity interests; the Company’s relatively limited history as an operating company and; the impact of the COVID-19 pandemic on the business of the Company’s tenants and business, income, cash flow, results of operations, financial condition, liquidity, prospects, ability to service the Company’s debt obligations and ability to pay dividends and other distributions to shareholders. For additional discussion of these and other applicable risks, assumptions and uncertainties, see the “Risk Factors” and forward-looking statement disclosure contained in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2021. While the Company believes that its forecasts and assumptions are reasonable, the Company cautions that actual results may differ materially. The Company intends the forward-looking statements to speak only as of the time made and do not undertake to update or revise them as more information becomes available, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220503005760/en/

Media:

Jon Keehner / Andrew Siegel

Joele Frank, Wilkinson Brimmer Katcher

212-355-4449

Source: Seritage Growth Properties

FAQ

What is the significance of Amazon's lease with Seritage Growth Properties?

Amazon has signed a lease for 123,000 square feet with Seritage at The Collection at UTC, indicating strong demand in the area.

How many jobs will Amazon create in La Jolla, California?

Amazon's new location is expected to create over 700 corporate and tech jobs.

What percentage of The Collection at UTC is currently leased?

As of the announcement, The Collection at UTC is 93% leased.

What are the future plans for The Collection at UTC?

The plan includes creating tech and life science hubs as part of Seritage's vision for the property.