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Suburban movie theater on market at $37 million By Eddie Baeb, March 01, 2010 More News General Growth swings to loss in fourth quarter In brief: Acadia Realty | Mag Mile hotels | General Growth Firm to stay in Illinois with deal to lease, buy Aurora building In brief: General Growth | 300 E. Randolph | Indiana lease Our most-viewed stories in the past week See all News... Comment on our stories Scroll to the bottom to share your thoughts. (Crain’s) — A 30-screen movie theater in west suburban Warrenville has been put up for sale with an asking price of $37 million. AMC Cantera 30, one of the region’s largest and top-grossing movie theaters, opened in 1998. The theater, at 28250 Diehl Road just off Interstate 88, is owned by Kansas City, Mo.-based Entertainment Properties Trust and an offshore investor and is leased to the operator, American Multi-Cinema Inc. (AMC). AMC’s lease runs through March 2015 with five four-year extension options, according to Cushman & Wakefield Inc., which is marketing the property for the owners. The asking price equates to a 12% capitalization rate on current rent, says Ken Szady, a Cushman executive director who is handling the marketing the property along with colleague Jim Carpenter. The movie theater business nationwide has held up well throughout the recession, and ticket sales last year increased 10% at AMC Cantera from 2008. “It outperformed its peer group,” Mr. Szady says. “It’s definitely one of the dominant theaters of Chicago.” The biggest question mark for investors will be what happens in five years when AMC’s lease is scheduled to expire. “None of these big megaplexes have come up on their rent renewals,” says Barry Schain, a principal with Northbrook-based Next Realty LLC who specializes in movie theaters. “AMC could seek lower rent or physical changes.” Another recent change that could be a factor is that in January AMC agreed to acquire most of the local Kerasotes theater chain, including Kerasotes Showplace 16 Naperville, which opened a few years ago about eight miles south of AMC Cantera along State Route 59 at 2815 Show Place Drive. AMC Cantera 30 co-owner Entertainment Properties, a publicly held real estate investment trust, last week announced its year-end financial results. The company had $270.8 million in revenue last year, with funds from operations of $4.9 million, or 13 cents per diluted common share, after non-cash charges for loan loss provisions and impairments. In 2008, the company had $286.1 million in revenue and funds from operations of $142.6 million, or $4.54 per share. Entertainment Properties owns movie theaters nationwide, including two others in the Chicago area: South Barrington 30 and Woodridge 18, which are both also run by AMC. We value your comments. Click here to learn more. What do you think? Readers now can comment on our stories. To comment, you must first be registered with ChicagoRealEstateDaily.com or ChicagoBusiness.com. If you are already registered, log in now. Once you log in you will see a link labeled "Click here to continue." Click that link to return to the story and add your comment. If you do not have an account, register now. You must login or register to leave a comment. You May Also Like Retail landlords' lament: vacancies up, rents down In brief: New movie theater, apartments on market, Oak ... Closer highlights for Dec. 1 In brief: Prime Group loss, theater firm sued, move subsidy Panel OKs TIF money for Little Village project Suggested Searches naperville - new movie theater - fourth quarter - oak brook retail - group realty trust - move subsidy - prime group - amc cantera - cb richard ellis - north bridge LoopNet Property Search Advertisement Location, location.... Use Crain's new text ads to market properties by real estate stories. www.ChicagoBusiness.com/L... In commercial real estate? Market your space with Crain's new text ads in this search box... www.ChicagoBusiness.com/L... Marketing your bank? Learn how your ad can appear when Crain's users search banking news. www.ChicagoBusiness.com/S... Copyright © 2009 Crain Communications, Inc. Privacy Policy | About Us | Back to Top