Category: Editorial

Target and Ulta Beauty Announce Strategic Partnership

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MINNEAPOLIS, MN and BOLINGBROOK, IL – November 10, 2020

  • Two trusted retailers redefine beauty experiences with expanded access to curated, prestige beauty brands and expert-trained beauty consultants with Ulta Beauty at Target, a “shop-in-shop” experience
  • Ulta Beauty at Target will debut at more than 100 Target stores nationwide and online at Target.com beginning in 2021

Target Corporation (NYSE: TGT) and Ulta Beauty (NASDAQ: ULTA) today announced a strategic, long-term partnership to transform the beauty landscape with Ulta Beauty at Target. The “shop-in-shop” concept will offer established and emerging prestige brands online and in select Target locations nationwide beginning next year. Target and Ulta Beauty, two trusted retail leaders that excel in curation, omnichannel engagement and guest-centric experiences, will together create a new way for beauty enthusiasts to discover exciting prestige brands. The partnership brings Ulta Beauty’s best-in-class beauty authority to millions of guests who love the ease and convenience of Target’s one-stop shopping experience. It also provides beauty brands an opportunity to expand and grow in a new, industry-leading omnichannel retail experience. “The durable strategy we have built has made Target a top retail destination. The ease and convenience of our stores and fulfillment services provide broad reach and relevance for the curated brands our guests love,” said Brian Cornell, chairman and CEO, Target. “In partnership with Ulta Beauty, a company that shares our deep guest focus, we are able to expand our growing beauty business with new, exciting brands, an immersive experience, and loyalty benefits to transform how our guests shop for all their beauty needs.”  “Ulta Beauty at Target reflects further evolution in our omnichannel strategy, rooted in unlocking the potential of our physical and digital footprints, creating more seamless shopping opportunities for our loyal guests and continuing to lead the beauty industry. More than ever before, now is the time for innovation in retail,” said Mary Dillon, CEO, Ulta Beauty. “This partnership is an amazing way to further reimagine guest experiences with a partner who shares our company values. We are thrilled to bring our beauty expertise, unparalleled assortment and digital innovation to life in a new channel to delight and deepen loyalty with our existing guests and introduce Ulta Beauty to new guests.”

Ulta Beauty at Target

Ulta Beauty at Target will debut at more than 100 Target locations starting in 2021, with plans to scale to hundreds more over time. The planned locations will complement Ulta Beauty’s current store footprint, welcoming new guests to the brand and building upon Target’s existing assortment of beauty options. The distinctive, branded shop-in-shop will operate as an extension of the welcoming Ulta Beauty experience, mirroring the retailers’ existing stores and designed to discover established and emerging prestige brands. With approximately 1,000 square feet of retail space, Ulta Beauty at Target will be prominently located next to the existing beauty section. To bring Ulta Beauty’s industry-leading expertise and established guest-centric experiences to life, the company will train newly hired Target team members to serve as experts on prestige beauty offerings, aligning to Target’s focus on providing guest service with deep product expertise. The shop-in-shop is expected to be enhanced with Ulta Beauty’s immersive, in-store digital discovery tools such as GLAMLab, a virtual try-on tool that provides safe trial across beauty categories. Guests who shop Ulta Beauty at Target online will enjoy free shipping available for qualifying orders as well as Target’s industry leading, same-day fulfillment services, Drive Up, Order Pickup and Shipt same-day delivery at participating store locations. As always, Drive-Up and Order Pickup are free on all orders. The online experience on Target.com and the Target app will reflect the look and feel of the elevated Ulta Beauty experience for an immersive, engaging way to find beauty favorites and new products. The Ulta Beauty at Target assortment will be available on Target.com and in select stores in the second half of 2021.

Reaching New Guests

Together, the two leading retailers have more than 100 million active loyalty program members across Target Circle and Ultamate Rewards. In addition to bringing guests enhanced offerings and expertise, the partnership will seek to create compelling, integrated opportunities to harness the power of these loyal guests and reward them when they shop at Ulta Beauty at Target. In recent years, Target has reinvented its beauty business, including expanding its assortment and creating an engaging in-store shopping experience. The investments have resulted in strong category sales and market share gains. Similarly, as the nation’s leading beauty destination and category market share leader, Ulta Beauty has strong brand awareness and is a top destination for discovery and services, connecting meaningfully with teens and the growing, influential Latinx audience. The partnership between Ulta Beauty and Target is set to redefine beauty experiences, creating new opportunities for guests and brand partners and to strategically and collaboratively lead the retail industry forward.

About Target

Minneapolis-based Target Corporation (NYSE: TGT) serves guests at nearly 1,900 stores and at Target.com. Since 1946, Target has given 5 percent of its profit to communities, which today equals millions of dollars a week. For the latest store count or for more information, visit Target.com/Pressroom. For a behind-the-scenes look at Target, visit Target.com/abullseyeview or follow @TargetNews on Twitter.

About Ulta Beauty

Ulta Beauty (NASDAQ: ULTA) is the largest U.S. beauty retailer and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services. Since 1990, the Company has brought together all things beauty, all in one place with more than 25,000 products from approximately 500 well-established and emerging beauty brands across all categories and price points, including Ulta Beauty’s own private label. Ulta Beauty also offers a full-service salon in every store featuring hair, skin, brow, and make-up services. Ulta Beauty operates retail stores across 50 states and also distributes its products through its website, which includes a collection of tips, tutorials and social content. For more information, visit www.ulta.com.

TEXASINDUSTRIAL 1.1-MSF Cold Storage Facility Sin key DFW Food Distribution Hub

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Westmount Realty Capital, LLC and a fund managed by New York-based DRA Advisors sold Dallas Food Center, a 1.13-million-square-foot, state-of-the-art cold storage facility. Jonathan Bryan and Randy Baird of CBRE represented the seller in the sale transaction. Terms of the deal were not disclosed. Spanning approximately 61 acres, the asset includes four distribution buildings, two refrigerated warehouses and substantial trailer storage. Located at 2600 McCree Road in Garland, Texas, the property was originally built as a Safeway (Tom Thumb) distribution center then saw major expansions and renovations in 1970, 1972, 1996, 2006 and 2008. “Westmount has had its pulse on industrial since the 1990s long before the explosive growth we’ve recently seen in the cold storage and industrial markets,” said Cliff Booth, CEO of Westmount. “We recognized this asset early on as a valuable investment that would be attractive to tenants due to its size, versatility and location. When we acquired this property, it was an under-performing portfolio that was 68 percent occupied. We were able to actively manage and lease-up the asset, growing occupancy to over 92 percent while improving the tenant profile and signing credit-worthy tenants to long-term leases spanning 10-15+ years.” Cold and freezer warehouses can pose a unique set of challenges but with extensive experience in value-add industrial, Westmount was able to identify the proper upgrades and modernize the facility including improvements made upon acquisition to convert dry warehouse space into cold storage. Those significant improvements met pent-up market demand, increased rents and occupancy. Westmount also raised the roof of the property in September 2017 by 15 feet, maximizing cold storage space as well as the addition of 90,000 square feet of freezer/cooler space. These renovations allowed high-profile tenant, Kraft Heinz Company, to quickly transport cold goods to more retail clients and consumers, resulting in the signing of a new 121-month lease that commenced in September 2017. Other improvements included parking lot paving and concrete repair, repainting the buildings, upgrading the sprinkler system and installing a heated floor to allow for greater cold storage capabilities. The improvements yielded a weighted average lease term remaining of 8.75 years for current tenants at the time of closing. With convenient access to three major interstates, I-635, I-30 and U.S. 75, the location has become a prime regional food distribution hub that is within a five-hour drive to San Antonio, Houston, Austin, Oklahoma City and Tulsa. The site is also served by various rail lines, including Dallas, Garland and Northeastern Railroad (DGNO) with the Kansas City Southern Railroad (KCS) running adjacent to the complex.

NAI Partners San Antonio Arranges 70 acres’ Worth of Land Sales

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NAI Partners San Antonio recently arranged two land sales totaling nearly 70 acres in Kyle, Texas. Both transactions were arranged by NAI Partners’ Brett Lum. In the first deal, Lum represented the seller in a 67.23-acre site for a planned new residential development. In the second, he represented the seller in 1.65-acre sale for a commercial corner to build a new convenience store, Bread Basket.

Dickey’s Capital Group Renews Lease at Corporate Headquarters in Dallas

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NAI Robert Lynn landed a lease renewal for Dickey’s Capital Group, a Dallas-based holding company for international barbecue chain Dickey’s Barbecue Restaurants, Inc. Dickey’s renewed a long-term lease on its corporate headquarters in the vibrant Knox-Henderson district, which is positioned across the highway from Dickey’s original 1941 location. “NAI Robert Lynn was thrilled we could keep Dickey’s in the area where they started,” said NAI Robert Lynn vice president, Justin Utay, who represented Dickey’s in the deal. “In 1941, Travis Dickey, a World War II veteran, opened the first Dickey’s Barbecue in Dallas, and fast-forward nearly 80 years, and they’re continuing to serve the Dallas metroplex and millions of other customers around the world. Nothing beats their authentic, slow-smoked barbecue, and we’re glad they’re operating in a great, familiar location right in the heart of Dallas.” Dickey’s, the largest barbecue franchise in the world, has been at its corporate headquarters since April 2000, occupying a full floor and over 11,025 square feet of office space. Despite challenges during the COVID-19 pandemic, Dickey’s has reported positive same-store sales for May, July, August, September and October. The fast-casual concept, which offers a variety of slow-smoked meats and wholesome sides, has two international locations in the United Arab Emirates and is on track to open other overseas locations later this year in Brazil, Pakistan and Egypt. “We’re proud to be Texas born and bred and thanks to NAI Robert Lynn, our employees, who work tirelessly to serve our owner operators and guests, can look forward to making more memories in an office that has been home for many years,” said Roland Dickey Jr., CEO of Dickey’s Capital Group.

CRG Launches $1B National Residential Development Strategy

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CRG, the real estate development and investment arm of Chicago-based Clayco, has launched a new national residential development strategy that includes $1 billion in multifamily developments over the next two to three years in response to COVID-19. Industry veteran and CRG managing partner J.J. Smith, who has sourced and developed more than $6 billion in residential communities across 100 cities since 2007, has rolled out this new residential development strategy in response to investor demand and changing economic conditions. The strategy will initially target a dozen U.S. markets, particularly in the Sun Belt, with stable rent growth and underserved middle-income multifamily demand. Due in part to COVID-19, CRG’s strategy will prioritize Class B, workforce housing aimed at people earning between 80 to 120 percent of U.S. Average Median Income (AMI). For this middle bracket seeking more housing options outside of the city, the firm will pursue development sites located in the first- and second-ring suburbs of urban centers. Dubbed “essential” housing communities by CRG, these developments will be specifically designed for the work-from-home resident, with pocket offices and what Smith calls “Zoom-worthy common spaces” for the remote-work crowd. “The pandemic has changed what middle-income earners want in a home and we think the effects will be long term,” said Smith. “After conversations with investors, we pivoted our focus toward building for the masses not the classes in locations that will provide a refuge from crowded areas without sacrificing quality of life, good school districts and proximity to job centers. Our plan addresses a development need which has largely gone underserved, and the pandemic has only further highlighted the need for these types of residential offerings.” According to the U.S. Census Bureau and U.S. Department of Housing and Urban Development, this new-construction, “essential” product has largely been missing for middle-income residents. In the Midwest, for example, the last large-scale development surge for middle-income families delivered about 1,400 communities in the 1970s, but then only approximately 800 between 1974 and 1994. In recent years, these projects have been deemed too expensive to build, but CRG’s vertically integrated platform with Clayco creates significant efficiencies to lower construction costs. Additionally, land prices have seen steep declines during the pandemic, further creating opportunity for the firm. CRG is currently building its first “essential” community, Broadway Chapter, in Fort Worth, Texas. The 320,000-square-foot project located at 401 Hemphill Street is a five-story, wood-framed multifamily complex. It’s scheduled for delivery in summer 2021. “We believe we’ve perfectly timed our first ‘essential’ community at Broadway Chapter as market occupancies are high and rental rate growth has remained positive,” Smith said. “We have been able to incorporate many of today’s design features that will make working from home a seamless experience.” CRG will continue to develop Class A, urban-infill communities in major cities. The firm will be more selective about market and site selection as well as its target renter demographic, but anticipates serving young professional and empty nester segments depending on individual market needs. “Large scale, urban-infill projects can take three to four years to develop and construct, and we are bullish that urban living will continue to remain desirable in the years ahead,” added Smith. “Our firm’s pipeline will feature a balanced mix of product types with a near-term focus on quicker-to-market Class B wood-frame communities while still lining up the longer lead time Class A infill opportunities.”

Net-leased Childcare Property Sells for $925k in La Porte, TX

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Marcus & Millichap brokered the sale of The Peanut Gallery, a 9,516-square-foot, net-leased childcare property located in La Porte, Texas, according to Steven D. Weinstock, regional manager and first vice president of the firm’s Chicago Oak Brook office. The asset sold for $925,000. Dominic Sulo, first vice president, and Eric B. Luhrsen, associate, and investment specialists in Marcus & Millichap’s Chicago Oak Brook office, had the exclusive listing to market the property on behalf of the seller, a partnership. The buyer, a limited liability company, was secured and represented by The Sulo Group of Marcus & Millichap. Tim Speck assisted in closing this transaction as the broker of record in Texas. The Peanut Gallery is located at 3902 Underwood Road in La Porte and is now a member of the Cadence Education family of schools, a leading national childcare operator. The property is an absolute net-leased childcare facility.