First Citizens Provides $16 Million to Raymour & Flanigan for Purchase of Showroom in White Plains, New York

Rhea-AI Summary

First Citizens Bank (FCNCA) provided $16 million in financing to Raymour & Flanigan for the purchase of a furniture showroom in White Plains, New York. The strategic addition to Raymour & Flanigan's footprint due to its size and location near major commuter thoroughfares will allow for a more robust and convenient shopping experience. Raymour & Flanigan is the seventh largest furniture retailer in the United States, operating 107 showrooms across the Northeast, as well as 34 outlet stores, five clearance centers, and a rapidly growing e-commerce business.

Market Research Analyst

The $16 million financing provided by First Citizens Bank to Raymour & Flanigan for an existing furniture showroom acquisition is a notable development within the retail sector. This investment signifies a strategic move for Raymour & Flanigan, aiming to bolster their physical presence in a key market. The location's proximity to major commuter routes could potentially increase foot traffic and enhance brand visibility. Additionally, the expansion aligns with the company's growth trajectory, particularly in enhancing its omnichannel retail strategy which includes a growing e-commerce business.

From a market perspective, this expansion by Raymour & Flanigan may suggest confidence in the durability of brick-and-mortar retail within the furniture segment, despite the increasing trend towards online shopping. The investment in a large, well-located showroom indicates a belief in the value of customer experience in physical stores. Furthermore, the retail furniture market is somewhat resistant to total e-commerce conversion due to the tactile nature of furniture shopping, where consumers often prefer to see and feel the products before purchasing.

Financial Analyst

The financial backing by First Citizens Bank is indicative of the bank's confidence in Raymour & Flanigan's business model and creditworthiness. This financing event may influence the company's leverage ratios and debt profile, which are critical factors for investors and analysts when assessing the company's financial health. The capital infusion is likely to be scrutinized for its impact on return on investment (ROI) and earnings before interest, taxes, depreciation and amortization (EBITDA).

For stakeholders, the key interest would be how this investment translates into revenue growth and margin improvement. The success of the new showroom will depend on its ability to attract customers and drive sales, which in turn could have a positive impact on Raymour & Flanigan's overall market share and competitive positioning. It is also important to monitor how this debt-financed expansion influences the company's cash flow and whether it aligns with its long-term strategic financial planning.

Real Estate Investment Analyst

The acquisition of the 70,000-square-foot showroom in White Plains by Raymour & Flanigan, financed by First Citizens Bank, has implications for the real estate investment market. The investment in a physical location of this size and with these amenities—such as a lower-level parking garage and multiple loading docks—reflects a bullish stance on the value of commercial real estate in that area.

Analyzing the potential return on real estate investments involves assessing the property's location, accessibility and features that may attract consumers. White Plains is a high-traffic area, which could imply a higher potential for customer engagement and sales volume. The long-term value of the property could also appreciate, contributing to the company's asset base. However, the retail real estate market can be volatile and changes in consumer behavior or economic downturns could affect the showroom's profitability. Thus, the risk and potential for both capital appreciation and income generation from this investment warrant careful consideration.

RALEIGH, N.C., Jan. 3, 2024 /PRNewswire/ -- First Citizens Bank today announced that its Middle Market Banking business provided $16 million in financing to Raymour & Flanigan for the purchase of an existing furniture showroom in White Plains, New York.

Raymour & Flanigan is the seventh largest furniture retailer in the United States, operating 107 showrooms across the Northeast, as well as 34 outlet stores, five clearance centers and a rapidly growing e-commerce business.

The White Plains showroom is a strategic addition to Raymour & Flanigan's footprint due to its size and location near major commuter thoroughfares. The 70,000-square-foot showroom has two floors, and the building includes a lower-level parking garage with ample covered parking spaces in addition to surface parking. The building also contains a passenger elevator, freight elevator and three loading docks.

"We appreciate First Citizens' capabilities in arranging financing to support the purchase of this property. This furniture showroom will allow us to provide a more robust and convenient shopping experience to White Plains and the surrounding area than our current location," said Adam Wasileski, director of Real Estate at Raymour & Flanigan.

"Raymour & Flanigan is a leader in the furniture retail industry," said Brendan Chambers, head of First Citizens Middle Market Banking. "We are excited about the opportunity to work with them as they expand their business."

First Citizens Middle Market Banking delivers a range of financial solutions to midsize clients through a relationship banking model. The business offers deposit solutions, loans, treasury services and other banking products to manufacturers, distributors and a wide variety of service industries.

About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in Raleigh, N.C., and now celebrating the 125th anniversary of its founding, First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 500 branches and offices in 30 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; innovation banking serving businesses at every stage; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets. Discover more at firstcitizens.com.

MEDIA RELATIONS:
Lexa Tutela Losey
212-461-5305
Lexa.Tutela@firstcitizens.com 

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SOURCE First Citizens Bank

How much financing did First Citizens Bank provide to Raymour & Flanigan for the purchase of the furniture showroom in White Plains, New York?

First Citizens Bank provided $16 million in financing to Raymour & Flanigan for the purchase of the furniture showroom in White Plains, New York.

How many showrooms does Raymour & Flanigan operate across the Northeast?

Raymour & Flanigan operates 107 showrooms across the Northeast.

What is the significance of the White Plains showroom for Raymour & Flanigan?

The White Plains showroom is a strategic addition to Raymour & Flanigan's footprint due to its size and location near major commuter thoroughfares, allowing for a more robust and convenient shopping experience.

Who is the director of Real Estate at Raymour & Flanigan?

Adam Wasileski is the director of Real Estate at Raymour & Flanigan.

Who is the head of First Citizens Middle Market Banking?

Brendan Chambers is the head of First Citizens Middle Market Banking.