- Seritage Growth Properties has only six assets left that aren’t currently under contract or in sale negotiations.
- The REIT, formed in 2015 to monetize Sears Holdings’ retail real estate, is in the final stages of liquidation following its 2022 decision to sell off assets piecemeal.
- Seritage expects to bring in over $288M from seven properties currently in the sale pipeline and up to $310M from the remaining six that are still being marketed.
Almost At The Finish Line
Seritage Growth Properties, the REIT formed to sell off former Sears and Kmart locations, reported in its Q3 earnings that only six properties remain. These are the only assets not currently under active sale negotiations or contracts, reports Bisnow. The update marks a significant step toward the company’s full liquidation process, which was approved by shareholders in 2022.
Status Update
Four of Seritage’s remaining properties are under contract and are expected to generate $240.8M. This includes one “premier development asset,” one vacant property, and two income-producing assets. Another three assets are in the purchase and sale negotiation phase, potentially adding another $47.3M in proceeds.
The six unsold assets could bring in up to $310M. Seritage is either actively marketing them or plans to list them when market conditions improve. The company doesn’t expect to sell these properties until 2026 or later.
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The Bigger Picture
Seritage was created in 2015 after Sears Holdings spun off its real estate assets. The REIT originally held a portfolio of 160 properties. That number is now down to 13, spread across key states including Florida, California, Texas, and Pennsylvania, totaling roughly 1.3M SF.
CEO Adam Metz stepped in as interim CEO in April. He noted the company is seeing “good progress” on its sales. Metz expects all three current deals under contract—with no due diligence contingencies—to close in the near term. If the deals close, Seritage will pay down a significant portion of its $200M term loan, which now matures in July 2026.
What’s Next
With momentum building, Seritage appears poised to fully liquidate its portfolio in the coming year. As remaining assets go to market and near-term deals close, the once-sprawling Sears real estate footprint continues its final descent into history.
