HOUSTON, TX – Rick’s Cabaret International, Inc. (NASDAQ:RICK), through its wholly owned subsidiary, RCI Holdings, Inc., has purchased two real estate parcels in Dallas and Ft. Worth.
The company paid a total of $5.5 million for the two parcels, paying $2 million in cash and the remaining $3.5 million financed by the seller through a 10 year note at an interest rate of eight percent.
The first property is at 12325 Calloway Cemetery Road in Fort Worth and includes the building where the company’s Cabaret East adult nightclub is located. The second property is at 2151 Manana Drive in Dallas and is home to a separately owned gentlemen’s club, Jaguar’s Gold Club, which will become a rental tenant of Rick’s Cabaret.
“This is a great investment for us in a vibrant market that has the end result of lowering our monthly cash outlay, since we no longer will be paying rent for Cabaret East and we will be collecting rent on the property currently occupied by Jaguars,” said Eric Langan, President and CEO of Rick’s Cabaret. “The acquisitions expand our holdings in a great region and will give us a very nice return on investment from day one.”
Subsidiaries of Rick’s Cabaret currently own and operate eight properties in the Dallas/Ft. Worth Metroplex. The company has 23 adult nightclubs nationwide.
All models were at least 18 years old at the time of their performance. 18 U.S.C. 2257 Record-Keeping Requirements Compliance Statement.
