Acquisition & Divestiture

Our client National Retail Properties (NPR), a major shopping center developer, took possession of this location from its original tenant, Amazing Jakes. It subsequently signed a long term lease with a new tenant for the space and asked Pinnacle to advise on the liquidation of furniture, fixtures, and equipment. The 50,000 square foot space included a major FEC and full pizza buffet restaurant with five dining rooms and full kitchen. We assisted in managing the liquidation including facilitating an absolute auction process with favorable results for the our client, NPR.

National Retail Properties is a real estate investment trust, investing in single-tenant retail properties generally subject to long-term, net leases. National Retail first retained Pinnacle to assess two of its tenant locations, big box family entertainment center/pizza buffet operations. We performed an appraisal, including site survey, contents inventory and valuation on all entertainment equipment, restaurant equipment, furniture, and fixtures for the two sites in the Denver and Dallas markets. We continued to serve the client in a subsequent engagement six months later. Pinnacle conducted an appraisal and valuation of five FEC properties located in three cities. Scope included appraisal, including site survey, contents inventory and valuation on all entertainment equipment, restaurant equipment, furniture, and fixtures for each of the five sites.

Pinnacle provides management services for this arcade and FEC chain's operations in Puerto Rico. We began this ten year relationship by securing a lease for the company in Plaza del Sol, Puerto Rico's newest shopping mall. We also assisted with design, economic planning, attraction selection, construction, and grand opening. We retained an interest in the project and continued to serve the client through a multi year management and consulting agreement. We then structured the company for sale, developed the prospectus and marketed the business, negotiating the successful sale of the business to an international operator.

Pinnacle has been retained by this nationwide game and FEC chain to assist with the marketing of certain assets as part of a strategic repositioning of its operations.

Assisted the owner in developing the sale prospectus for the business, as well as developing the marketing strategy, which contributed to its successful sale.

Founded by George McAuliffe in 1996, Pinnacle was an amusement operator in some 75 locations, primarily serving Wal-Mart Stores, Inc, in Southern Illinois and Eastern Missouri. Pinnacle partnered with a local operator in San Juan, PR to operate an additional 75 locations throughout Puerto Rico. Both businesses specialized in crane and merchandise machine operations, along with video games, kiddie rides, and bulk vending. Pinnacle was active in a series of acquisitions and divestitures:

August, 1996:	Pinnacle Entertainment, Inc. and Pinnacle Entertainment Group, Inc. founded.
October, 1999:	Mr. McAuliffe negotiated the sale of Pinnacle Entertainment, Inc. to Family Golf Centers, Inc. (NASDAQ: FGCI).
February, 2001:	Pinnacle Entertainment Group, Inc. acquired the assets of Pinnacle Entertainment, Inc. from FGCI.
January, 2002:	Pinnacle Entertainment Group, Inc. acquired the assets of Lorin Associates, a St. Louis based amusement operator. Pinnacle incorporated many of the locations, sold others, and closed underperformers, liquidating excess inventory.
April, 2005:	Pinnacle Entertainment Group sold all of its game assets to Coinstar, Inc. (NASDAQ: CSTR)
April, 2005- April, 2008:	Pinnacle Entertainment Group, Inc. focuses on developing its consulting practice.
April, 2008:	Pinnacle Entertainment Group, Inc. suspends operations, Mr. McAuliffe merges his consulting practice into Redemption Plus, LLC, which forms Pinnacle Entertainment Advisors by Redemption Plus to launch its consulting and Customer Success capabilities.

In 1995 Mr. McAuliffe served as chief executive of the $50 million entertainment division of Edison Brothers Stores, Inc. (NYSE:EBS) The parent company was a national retailer with $1.75 billion in shoe and apparel sales. Edison experienced a significant decline in the business of its core shoe and apparel stores which led the parent to file for Chapter 11 protection late in the year. Mr.McAuliffe structured a management buyout plan for his division, attracted the private equity firm Sun Capital Partners as equity investors, negotiated a binding finance agreement with a major Bank, and received bankruptcy court approval for the acquisition, subject to higher and better bids. The Sun Group withdrew at auction in competition with Namco Cybertainment, Inc. a Japanese industry manufacturer with US operations, collecting a break up fee. Over 90% of the entertainment locations continued in operation under the new owner.

Advised the managing foundation on wind up and negotiated the placement of the collection.

Divestiture of twenty properties through sale or liquidation resulting in income exceeding budget by over 100%, producing a return of over 80 cents per dollar of book value in a Chapter 11 environment.