Hallandale strip club sells for $1,038 per square foot
Article witten by SCN. Additional content from therealdeal.com.
Publicly held RCI Hospitality Holdings Inc. bought a strip club in Hallandale Beach for $25.95 million, or $1,038 per square foot.
Houston-based RCI closed its acquisition of Scarlett's Cabaret at 2920 Southwest 30 Street in Hallandale Beach on May 8.
RCI also acquired the Scarlett's Cabaret brand, which it plans to license to other strip clubs around the country. The company owns more than 40 strip clubs nationwide.
Scarlett's, a 25,000-square-foot club near the interchange of Hallandale Beach Boulevard and Interstate 95, is generating more than $6 million of annual operating profit and approximately $13 million of annual revenue, according to RCI.
RCI also owns a nearby strip club in Miami Gardens, Tootsie's Cabaret.
Scarlett's "tends to attract a different clientele from our 74,000-square-foot Tootsie's Cabaret, which is five miles south, making the two clubs complementary to each other," Eric Langan, president and CEO of RCI, said in a prepared statement.
RCI acquired the stock of JW Lee Inc., the company that owned Scarlett's and a 21-year lease on the property.
RCI made an initial payment of $5.4 million and agreed to pay another $5 million in six months. The seller also got a note with an 8 percent interest rate and a 12-year amortization schedule for the $15.55 million balance of the purchase price.