REIT Takes 67% Interest in Cappelli Center

WHITE PLAINS-Entertainment Properties Trust has acquires a majority interest in Cappelli Enterprises Inc.’s City Center at White Plains, here. Officially, the completed acquisition gives Entertainment Properties Trust a 67% voting interest in White Plains Retail LLC and White Plains Recreational LLC.

According to a statement released by Entertainment Properties Trust on the transaction, “the project has existing debt of approximately $120 million, and the company invested $30 million to complete the transaction.”

A spokesman for Cappelli tells GlobeSt.com that the transaction is a swap of ownership shares. Cappelli will now hold the minority interest, while remaining managing partner.

“The addition of City Center at White Plains to our portfolio of entertainment retail centers represents a continuation of our strategy to own premier theatre-anchored properties, and a strengthening of our relationship with the Cappelli group, our partner in the New Roc Entertainment Center and a developer of numerous high-quality retail and residential properties,” says David Brain, CEO of Entertainment Properties Trust.

The 390,000-sf City Center at White Plains is anchored by a 15-screen Cinema De Lux, which is operated by National Amusements, as well as a 59,000-sf New York Sports Club location. “We are very excited about adding the National Amusements name to our family of theatre operators,” Brain says.The retail facility, which is part of a 1.1-million-sf mixed-use development constructed by Cappelli Enterprises, also houses a 27,000-sf Barnes & Noble, a 38,000-sf Circuit City, a 77,000-sf Filene’s Basement, Legal Seafood and Applebees. Target has a 150,000-sf store at the site too.

Cappelli and Entertainment Properties Trust are also partners on the New Roc City entertainment complex in New Rochelle, NY. The Cappelli spokesman says that the firms expect to partner on more deals. Entertainment Properties Trust could possibly team on the $3-billion development of downtown New Rochelle.

Entertainment Properties Trust is a real estate investment trust that focuses on developing, owning or financing entertainment properties like megaplex movie theaters, and destination recreational sites in the United States. Since November 1997 the REIT has acquired more than $1.5 billion of assets. Its portfolio consists of more than 1.7 million sf, including New Roc Entertainment and New Roc City 18 both in Rochelle, NY.

On Thursday, Cappelli announced plan to construct 1.5 million sf of office space around the White Plains train station in three individual towers.