Mortgage Observer

iStar Seeking $120M for Bowling Portfolio Acquisition

iStar Financial is acquiring a portfolio of 58 bowling centers around the country from Lakesville, Ill.-based marine engine and sporting equipment manufacturer Brunswick Corporation and is seeking $120 million for the acquisition, a person familiar with the negotiations exclusively told Mortgage Observer on background.

The New York-based REIT last week tapped JLL to secure a $120 million loan with a term of five or 10 years, the person said. JLL declined to comment. iStar did not return requests for comment.

Brunswick Zone XL in Algonquin, Ill.

Brunswick Zone XL in Algonquin, Ill.

iStar committed to buying the bowling center portfolio for $200 million and will lease the 58 properties to Mechanicsville, Va.-based Bowlmor AMF Corp., which last week agreed to acquire Brunswick’s retail bowling business for $270 million. In total, Bowlmor AMF is selling 85 centers in the U.S. and Canada as well as its bowling products business.

The bowling centers to be acquired by iStar are located in and around Los Angeles, Atlanta, Chicago, Minneapolis, Denver and Dallas and all have bondable 20-year triple-net leases, according to the person familiar with the transaction.

One of the newer centers, Brunswick Premier Lanes, is located at 845 Lazo Court in Chula Vista, Calif., public records show. The center does “cosmic bowling” after 9 p.m. using black lights, according to its website.

The portfolio acquisition is expected to be completed in the next three months.