The Laker/Lutz News

Serving Lutz since 1964 and Pasco since 1981.
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U.S. Securities and Exchange Commission

Zephyrhills senior home gets new name

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Just two months after picking up a new owner, West Winds Assisted Living Facility in Zephyrhills is no more.

The 75-bed for-profit facility is now called Rosecastle of Zephyrhills, according to a posting on the facility’s Facebook page.

West Winds Assisted Living Facility on Eiland Boulevard is now known as Rosecastle of Zephyrhills. (File photo)
West Winds Assisted Living Facility on Eiland Boulevard is now known as Rosecastle of Zephyrhills. (File photo)

“West Winds Assisted Living is now Rosecastle of Zephyrhills, and yes, we still are an assisted living and memory care facility for seniors who find that ‘it’s never too late to continue celebrating life,'” the facility said on its social media page.

Rosecastle, located at 37411 Eiland Blvd., was sold Oct. 1 to Sabra Health Care Holdings III, which lists its address in Irvine, California, according to Pasco County property records. West Winds Prime LLC was the seller, and managed the property through various companies since West Winds opened in 2008.

Sabra is a real estate investment trust that acquires senior citizen housing, memory care and skilled nursing facilities around the country. It purchased West Winds for $10.2 million, adding it to six skilled nursing facilities and three senior housing facilities Sabra purchased through the first half of 2014 for $141.5 million, according to filings at the time with the U.S. Securities and Exchange Commission.

Sabra is a real estate investment trust, or a REIT. They are financial securities that allow investors to buy ownership into a property or mortgage, rather than in a company like what would typically be found on the stock market. Investors in such projects usually earn a percentage of profit from rents or fees collected from tenants in those properties, and would receive a portion of any profits made with the REIT sells that project to someone else.

At the time of its sale in October, it was Pasco’s third-largest real estate transaction. Topping that list was the $36.1 million sale of the Arlington at Northwood apartment complex in Wesley Chapel, followed by the $16 million sale of more than 330 acres of land in Wiregrass Ranch to make way for a proposed 550-home subdivision. Both of those transactions took place in May.

Simon: Outlet mall construction has started

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Crews were out this week clearing the land near the intersection of State Road 56 and Interstate 75 for a new outlet mall, and it looks like come this time next year, there will be a new place for residents to shop.

Simon Property Group told investors in a filing with the U.S. Securities and Exchange Commission Wednesday, that construction has started on Tampa Premium Outlets, a 441,000-square-foot center that is now expected to open next October. That is later than what Simon had hoped to complete construction, originally saying last year that it would open by the end of 2014, and then pushing that back to July 2015 a short time later.

It’s one of two new projects Simon has started in the most recent quarter, according to the filing, joining a 366,000-square-foot center start in Tucson, Arizona.

The Indianapolis-based company didn’t say how much it was spending on construction of the outlet mall in the general Wesley Chapel and Land O’ Lakes area, but said all of its current construction projects totaled about $2.2 billion. That includes the Tucson project, as well as recent premium mall openings in North Carolina and Minnesota, and construction and expansion of at least 30 other projects throughout North America.

Tampa Premium Outlets LLC purchased the more than 48 acres of land on three parcels for $14.1 million on Oct. 3, according to Pasco County property records. The company is a wholly-owned subsidiary of Simon Property Group, according to state corporate records, and Simon’s financial filings with the SEC.

The full project will be built in seven phases, according to plans filed with the county last February, which would include the main outlet mall in the first phase located in nine buildings. It will include nearly 2,400 parking spaces, far more than the 1,600 spaces required by the county for a project of this size.

Simon has not made any formal announcements on tenants for the property, or who will anchor, although some of those announcements are expected by the end of the year.

West Winds in Zephyrhills sells to California group

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West Winds Assisted Living Facility is no longer locally owned.

The 75-bed for-profit facility, located at 37411 Eiland Blvd., in Zephyrhills, was sold Oct. 1 to Sabra Health Care Holdings III, which lists its address in Irvine, California, according to Pasco County property records.

West Winds Assisted Living Facility on Eiland Boulevard is now known as Rosecastle of Zephyrhills. (File photo)
West Winds Assisted Living Facility on Eiland Boulevard is now known as Rosecastle of Zephyrhills. (File photo)

West Winds Prime LLC was the seller. The Palm Harbor company’s ownership has essentially managed the facility through various companies since West Winds opened in 2008.

Sabra is a real estate investment trust that acquires senior citizen housing, memory care and skilled nursing facilities around the country. It purchased West Winds for $10.2 million, adding it to six skilled nursing facilities and three senior housing facilities Sabra purchased through the first half of 2014 for $141.5 million, according to its filing with the U.S. Securities and Exchange Commission.

It’s not clear how many facilities purchased recently, but a newspaper in Nashville reported the REIT closed on a facility there around the same time for $21.1 million.

Real estate investment trusts, or REITs, are financial securities that allow investors to buy ownership into a property or mortgage, rather than in a company like what would typically be found on the stock market. Investors in such projects usually earn a percentage of profit from rents or fees collected from tenants in those properties, and would receive a portion of any profits made when the REIT sells that project to someone else.

Through the end of June, Sabra already owned six skilled nursing facilities in Florida, according to the company’s website. That includes a 107-bed campus in Fort Pierce the company purchased last March as part of a two-facility, $24.5 million deal.

West Winds did not respond to a request for comment.

This is the third largest real estate transaction in Pasco this year, behind the $36.1 million sale of the Arlington at Northwood apartment complex in Wesley Chapel, and the $16 million sale of more than 330 acres of land in Wiregrass Ranch to make way for a proposed 550-home subdivision. Both of those transactions took place in May.

Kmart turning off blue light in Zephyrhills

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Pasco County is losing yet another Kmart store, and it’s going to affect nearly 70 jobs in Zephyrhills.

Sears Holdings Corp., the parent company of Kmart, told The Laker/Lutz News it will close its location at 7422 Gall Blvd., in early December. A liquidation sale began Sunday, and will continue for the next two months as the location gets ready to shut its doors.

A second location is reportedly being closed in New Port Richey as well.

Although he didn’t say how many stores were being closed, a Sears spokesman said store closures were “part of a series of actions we’re taking to reduce ongoing expenses,” as well as transform the company’s business model.

“These actions will better enable us to focus our investments on serving our customers and members through integrated retail — at the store, online and in the home,” said Sears spokesman Howard Riefs, in a statement.

The other Kmart location on this side of Pasco County, located at 22920 State Road 54 in Lutz, will not be affected by the closing, Riefs said.

The Kmart location in Zephyrhills currently has 68 employees, and those associates will receive severance packages if they are eligible, Riefs said. They also will have the chance to apply for open positions in other Sears or Kmart stores. Most of the jobs being lost are part-time or hourly.

Sears has closed a number of stores so far this year, including 46 nationwide during the second quarter, according to its filings with the U.S. Securities and Exchange Commission. In total, 75 Kmarts had closed through the first half of 2014, as well as 21 Sears stores. In the first half of 2013, 27 Kmarts and 10 Sears were closed.

Kmart had sales of $2.9 billion in the most recent sales quarter, compared to $3.2 billion the year before. The company lost $142 million during that time compared to a $56 million loss the year before.

Centennial Bank parent acquires Florida Traditions

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Home BancShares Inc., the parent company of Centennial Bank, has finalized its acquisition of Florida Traditions Bank, and its branches located in eastern Pasco and Hillsborough counties, among other places.

Terms of the deal were not disclosed, but previous published reports put the sale at $43 million in stock. The combined Centennial Bank will now boast $7 billion in total assets, and $5.5 billion in total deposits in nearly 150 branches in Florida, Arkansas and Alabama.

Bud Stalnaker, the chief executive of Florida Traditions, will stay on with the new Centennial as division president for Central Florida.

“We are equally excited about the opportunities this acquisition provides our customers and employees,” Stalnaker said, in a release. “Joining Centennial not only enhances our service capabilities, but also allows our focus to remain on outstanding community banking.”

Florida Traditions was founded in 2007 by a group of East Pasco County business owners who saw a need for a locally owned and locally managed bank, according to the company’s website. It had eight branches in Zephyrhills, Dade City, Spring Hill, Winter Haven, Lakeland, Plant City, Kissimmee and St. Cloud.

Home BancShares, based in Conway, Arkansas, recorded a profit of $27.3 million in the first quarter through March 31, according to filings with the U.S. Securities and Exchange Commission.

Coach set to close 70 retail stores

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Coach Inc., the maker of high-end accessories, handbags, shoes and clothing, says it will close 70 retail stores, possibly by early next year.

Coach didn’t tell investors which locations they plan to close, but the company has a store locally at The Shops at Wiregrass, 28211 Paseo Drive, Suite 160.

The closure is part of what the New York-based company has called a multi-year transformation plan that will be focused on a new global branding strategy centered on the concept of “defining modern luxury,” according to a filing with the U.S. Securities and Exchange Commission. The overall plan could have up to a $300 million hit to the company’s bottom line through next year.

Sales over the last nine months leading into spring were down nearly 5 percent for the company, according to public filings, dropping to $3.7 billion.

Coach operates 351 stores in North America, according to its filings with investors. The closures would account for nearly 20 percent of its total retail outlets. Other locations in the greater Tampa Bay region include International Plaza in Tampa’s Westshore District, Countryside Mall in Clearwater, and Brandon Town Center.

Zephyrhills’ first public company gets solid start on market

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It’s hard to find a company on the eastern side of Pasco County publicly trading shares on a stock exchange, but the newest public company is off to a fast start.

Those who bought shares in CES Synergies at $1 each have already watched their value more than double since shares hit the open market in late January. Tuesday’s close on the Crystal Springs-based full-service environmental, demolition and mold remediation company, was $2.50, coming off a Tuesday high of $2.71 soon after the company released its first yearly financial results.

With that high, someone who invested the minimum $15,000 in the initial offering last year now has paper worth more than $40,650. But the stock market is a tricky place where prices might be high one day and drop the next.

CES released its 2013 financials on Monday, announcing a loss of $161,000 last year, compared to a profit of $389,000 in 2012. That caused shares to dip from its previous high of $2.50 on Friday to $2.35 by the end of the day Monday. Yet, by Tuesday, values were on the rise once again into record territory — likely fueled by a solid fourth quarter for CES, where revenue soared 91 percent compared to the year before.

Clyde Biston, the chairman and chief executive for CES, told investors that growth will likely continue this year, especially with new contracts with the New Orleans Housing Authority, the Florida Department of Transportation and Eglin Air Force Base on the Florida Panhandle.

CES, which trades over-the-counter as CESX, primarily attracts customers that are typically government bodies or large corporations, helping them with various environmental and demolition projects. Last year, its largest clients were FDOT and Sarasota County Schools, according to its filings with the U.S. Securities and Exchange Commission.

The company has 46.5 million shares, which gives CES a paper value of $126.1 million based on Tuesday’s stock close. Yet, right now, CES shares are considered “penny stock,” meaning they are not part of a major stock exchange (like the New York Stock Exchange or Nasdaq), and are valued at less than $5 per share.

Because of that, a penny stock is not as easy to sell as a stock on a major exchange would be. However, CES has planned from the beginning to make its way to a major exchange as quickly as possible.

Jeff Chartier, president of Strategic Capital Markets of North Miami Beach — who also serves on the CES board of directors — said before a presentation in Zephyrhills last November that the company’s initial offering gave potential investors “a chance to own part of the company, and join us as we’re poised to go on the bigger market,” like Nasdaq.

While the company remains based in Crystal Springs, Biston last year announced plans to move into the upper floors of the former Wachovia Bank building on Fifth Avenue in Zephyrhills, a building he purchased in 2009 for $550,000.  Biston at one time offered the building as a potential library site for the city before council members there opted to build a new library near its current site.

Staples will close 225 more stores

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As more and more of its business moves into the digital realm and away from physical stores, office supply chain Staples Inc. said it would close another 225 stores over the next two years.

Staples has stores locally at 7910 Gall Blvd., in Zephyrhills, as well as at 6260 Commerce Palms in New Tampa. The company did not indicate which stores are closing, or if either the Zephyrhills or New Tampa locations will be affected.

Sales were off by more than 10 percent for the chain over the final three months of 2013, and Staples had already shuttered more than 60 stores nationwide last year. Since then the company has increased its online offerings from 100,000 products to 500,000, and reduced store sizes and different locations, according to its filings with the U.S. Securities and Exchange Commission.

Staples has more than 1,500 stores in the United States, and employs more than 50,000 people.

For the stores that remain open, Staples is looking to add more product categories by the end of June. They includes supplies for facilities and break rooms, maintenance repair, storage services, and gifts and cards for office parties, among other items. In all, Staples says it will add 1,600 products beyond office supplies, and remove 1,000 others as the store tries to refresh its offerings.

RadioShack closing 1,100 stores, locals may be affected

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RadioShack Corp. says it will close 1,100 stores by the end of spring — a quarter of its total stores — and it could affect some of its stores locally.

The company didn’t say which of its more than 5,000 stores it will close, but there are 283 stores in Florida, including one at 23012 State Road 54 in Lutz, and another at The Shops at Pebble Creek, 19416 Bruce B. Downs Blvd., in Tampa. Zephyrhills also has a RadioShack at 7248 Gall Blvd.

“Over the past few months, we have undertaken a comprehensive review of our portfolio from many angles — location, area, demographics, lease life and financial performance — in order to consolidate our store base into fewer locations while maintaining a strong presence in each market,” said Joseph C. Magnacca, chief executive of RadioShack, in a release.

The two local RadioShack stores are part of a greater region of Pasco and Hillsborough counties were the company currently operates 10 stores, some just minutes from others. The Lutz location is the last location north in west central Florida until Brooksville.

Sales at company-operated RadioShack stores were down 10 percent in 2013 from the year before, and 15 percent from 2011.

It will cost RadioShack a little more than $10,000 per store to close them, and another $9,200 in inventory write-downs, according to documents filed with the U.S. Securities and Exchange Commission.

The closings could affect as many as 7,000 employees nationwide.