Leadership Change at Seritage Growth Properties as Liquidation Efforts Continue

Seritage Growth Properties, a real estate investment trust (REIT) initiated for the liquidation of former Sears department store locations, is set to transition its leadership. The current CEO and President, Andrea Olshan, is slated to depart from her position next month, as per the announcement made by the company on Friday.

Transition in Leadership

Olshan, who has held her role since 2021, will officially resign on April 11. Following her departure, the current Chairman of the Board, Adam Metz, will assume the responsibilities of interim CEO and president.

Liquidation Process Progress

The change comes as Seritage continues to wind down operations after a 2022 shareholder vote that endorsed an extensive liquidation strategy. The company’s holdings have significantly decreased from 160 assets to just 15 in recent months, indicating a swift approach to divestment.

Acknowledgment of Contributions

“We thank Andrea for her considerable contributions over the last four years and her tireless work on behalf of Seritage and its shareholders,” said Metz, acknowledging her leadership during a challenging period for the company.

Financial Impact Under Olshan’s Leadership

During her tenure, Olshan played a crucial role in the company’s debt management, successfully contributing to a reduction of approximately $1.3 billion. Additionally, she secured a one-year extension on the company’s senior term loan, originally set to mature in July, as outlined in the SEC filings.

Current Financial Status

As of the latest filings for the third quarter of 2024, Seritage has several transactions in progress, including contracts to sell five assets for a total valuation of $88 million and an accepted offer for a sixth asset valued at $30 million. The company estimates that the remainder of its portfolio could potentially sell for as much as $765 million.

Future of Olshan Properties

Following her exit from Seritage, it remains uncertain whether Olshan will return to her previous role at Olshan Properties, the family real estate firm founded by her late father, Mort Olshan. Currently, Zachary Bornstein serves as CEO of Olshan Properties, and a spokesperson for the firm declined to comment on Olshan’s potential future role.