RCI Hospitality Subsidiary Acquires Tootsie's Cabaret Real Estate in Florida
HOUSTON, TX—August 3, 2015—RCI Hospitality Holdings, Inc. (NasdaqGM: RICK) today announced that a subsidiary has acquired the Miami Gardens Square retail plaza in Florida, where Tootsie’s Cabaret, the company’s largest adult club subsidiary and the plaza’s largest tenant, is located.
Total consideration was $15.3 million. The RCI subsidiary paid $3.975 million in cash and financed the $11.325 million balance through a 5.45% loan with Centennial Bank of Florida.
The 14-acres at 18201 NW Second Avenue, Miami Gardens, has 190,000 square feet of retail space, which is 100% occupied. The plaza is dominated by Tootsie's Cabaret, followed by a large floor tile wholesaler.
“While it was prudent that we eventually control the Tootsie’s Cabaret property for licensing purposes, this investment also is attractive because the mall is income producing, has good management, and we expect the transaction to be accretive to earnings,” said Eric Langan, President and CEO.
Tootsie’s Cabaret, close to US 95 at the corner of Highway 441 and Miami Gardens Drive, has gained national attention after being voted No. 1 adult nightclub in America at the Las Vegas Adult Nightclub Expo. It measures 74,000 square feet, and features full nudity, four full liquor bars, a 400-plus square foot main stage, more than 300 hi-def TV screens, more than 200 attractive entertainers, three levels of VIP areas, and a 15,000 square foot Knockers Sports Bar.
About RCI Hospitality Holdings, Inc. (NasdaqGM: RICK)
With 46 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in adult gentlemen clubs and sports bars/restaurants. Adult clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names, such as “Rick's Cabaret,” “XTC,” “Club Onyx,” “Vivid Cabaret,” “Jaguars” and “Tootsie’s Cabaret.” Sports bars/restaurants operate under the brand name “Bombshells.” Please visit http://www.rcihospitality.com/
This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the company’s actual results to differ materially from those indicated in this press release, including the risks and uncertainties associated with operating and managing an adult business, the business climates in cities where it operates, the success or lack thereof in launching and building the company’s businesses, risks and uncertainties related to the operational and financial results of its Web sites, conditions relevant to real estate transactions, and numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.
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