Subject Property: 8275 W Amarillo Blvd, Amarillo TX (former Regal/UA Amarillo Star Stadium 14) Size: 83,422 sqft | Vacant since: September 15, 2022 (~32 months as of May 2026) Owner: Cinergy 110 LLC (Cinergy Entertainment Group, Dallas, TX) Date prepared: May 4, 2026 Purpose: Power Church alternative offer — Master Lease with Option to Buy
Cinergy is a parent in expansion mode (just opened Midland Dec 2025, breaking ground on Corpus Christi Sept 2025, $125M credit facility from Dec 2024). They have a ~$45M new build going right now. The Amarillo asset is dead weight on their balance sheet — not a strategic property.
The CFO is on record saying redevelopment is “substantially more expensive than we had anticipated” — they tried THREE floor plans, all financially infeasible. The building has been sitting cold for ~20 months under Cinergy ownership and ~32 months total vacant. Carrying costs (taxes, insurance, security, deferred maintenance) are bleeding ~$15K-$25K/month with zero revenue. Power Church’s master lease eliminates that drain instantly.
This is the negotiation hammer: Power Church isn’t asking Cinergy to give up an opportunity. Power Church is offering to stop the bleeding on a stranded asset.
| Source | Average $/sqft NNN | Notes |
|---|---|---|
| Wellborn Real Estate (Feb 2025) | $16.57/sqft NNN avg | Amarillo retail benchmark |
| LoopNet / CommercialCafe (2026) | ~$16-18/sqft | General retail avg |
| MyEListing Amarillo (2026) | $16/sqft avg | 502 listings, 2.38M sqft |
| Property | Base Rent | NNN Costs | Total $/sqft |
|---|---|---|---|
| Coronado Shopping Center | $12.00 | $3.48 | $15.48 |
| Martindale Shopping Center | $12.00-18.00 | $2.94 | $14.94-20.94 |
| 31st Plaza | $12.00 | $3.15 | $15.15 |
The UA Theater is NOT comparable to active strip retail. Adjustments: - Negative: Vacant 2.5+ years, special-purpose box, theater configuration (sloped floors, lack of windows, single ingress), no co-tenancy, distressed disposition - Vacancy discount: Long-vacant special-purpose properties typically lease at 40-60% discount to surrounding market
Estimated market rate for subject property as-is, NNN basis: $7-$10/sqft annual (50-60% discount applied to Amarillo retail benchmark) At 83,422 sqft: $584K - $834K annual NNN rent
Mark as ESTIMATE. No directly comparable Amarillo theater lease has closed publicly. This range is derived from Amarillo retail benchmark with documented vacancy/special-purpose discount.
No public Texas-specific theater→church master-lease comps with disclosed financials. Below is what’s publicly documented for theater→church transactions in 2024-2026:
| Year | Property | Buyer/Lessee | Structure | Notes |
|---|---|---|---|---|
| 2024 | Washington (NC) movie theater | Journey Church | Lease (entire bldg, was sharing) | Mixed-use: church + community/event space |
| 2025 | El Rey Theatre, San Francisco | The Father’s House SF | Purchase | Long-blighted, included retail spaces re-purposed for ministry |
| 2025 | Old Brunswick (ME) movie theater | Local church | Pending move | News only, terms not disclosed |
| 2025-26 | Reno (NV) downtown theater | Living Stones Church (Reforma) | Purchase + retail mixed-use | First service Easter 2027; 3-4 retail tenants planned |
| 2026 | Littleton, CO theater | Local church | Free lease → $3M purchase | KEY COMP: church leased at $0 starting Nov 2025, spent $100K stabilizing, then bought for $3M |
The Littleton CO comp is the closest analog: a church got 100% rent abatement (free lease) for an extended period before buying outright. Demonstrates that for shuttered theaters, motivated owners give away the building’s monthly carry just to stop the cash drain. This is a real, recent precedent for what Power Church should propose.
Source: BusinessDen (Apr 2026), SF Standard, Press Herald, KRIS-TV, episcopalnewsservice.org
| Scenario | Typical Free Rent |
|---|---|
| Standard 5-year lease, average market | 2-3 months |
| Long-vacant property (6+ months vacancy) | 2-4 months minimum |
| Distressed property (12+ months vacant) | 6-12 months documented |
| Theater/special-purpose shuttered building | 8-12+ months realistic (Littleton CO = essentially unlimited free) |
| 10+ year lease with build-out | Up to 12 months negotiable |
| Market | Class A Office | Retail | Special Purpose |
|---|---|---|---|
| Dallas | $30-50/sqft | $20-35/sqft | Negotiable, often turnkey |
| Houston | $25-45/sqft | $20-30/sqft | Project-specific |
| Austin | $30-60/sqft | $25-40/sqft | Higher for build-outs |
| Fort Worth | $25-45/sqft | $20-35/sqft | Project-specific |
| Frisco / DFW suburbs | $20-30/sqft (newer) | $10-15/sqft (older retail) | Often tenant-funded |
For special-purpose/theater conversion to church: TI allowances are typically lower than retail because: - Tenant improvements (sanctuary, stage, AV, kids’ wing) don’t increase generic re-leasability - Special-purpose tenants traditionally fund their own build-out - BUT: motivated landlords on long-vacant boxes often offer $10-25/sqft as deal-grease
| Element | Typical Norm | Source |
|---|---|---|
| Option payment (upfront) | 1-5% of agreed purchase price | Commercial Property Advisors |
| Monthly lease payment | Covers seller’s debt service + taxes + insurance (NNN-style) | CRE University |
| Option period | 3-5 years typical, 7-10 years possible for large/special-purpose | Multiple sources |
| Rent credit toward purchase | 10-30% of monthly rent typical | NAR, Mashvisor, JMCO |
| Purchase price set at signing | YES — fixed at “current under-performing value” | Commercial Property Advisors |
| Equitable title to lessee | YES — operational control during option | CRE University |
| Right of First Refusal (ROFR) | Common add-on | Various |
| Maintenance/repairs | Lessee responsibility (NNN structure) | Standard |
Sources: Commercial Property Advisors, CRE University, Mashvisor, AssetsAmerica, JMCO Real Estate
| Ask | Justification |
|---|---|
| a) Free rent during construction (8-12 months) | Littleton CO precedent (full free); industry norm for distressed/long-vacant is 6-12 mo; Power Church will be paying NNN expenses (taxes/ins) during this period anyway, so Cinergy is still net-better-off vs. status quo |
| b) Reduced rent during phased ramp-up (months 13-24) | Step rent: 50% of full rate during ramp, scaling to 100% by month 25. Standard for new ministries with phased member base growth. |
| c) Rent credit toward purchase (30-50%) | High end of normal range (10-30%) justified by: long vacancy, distressed disposition, special-purpose conversion, 501(c)(3) buyer, build-out funded by tenant |
| d) Right of First Refusal (ROFR) | Standard ask. Cinergy gives this up for free; protects Power Church if Cinergy gets a third-party offer mid-option period. |
| e) Option price floor | Lock in NOW at distressed/vacant value before any appreciation from Power Church’s improvements. Critical: sets the ceiling on what Power Church pays. |
| f) Option period: 5 years | Long enough to build congregation, prove cash flow, secure long-term financing. Within standard 3-5 year norm. |
| g) Permitted use clause | Must explicitly allow church/religious assembly + community center + ancillary commercial (cafe, bookstore, etc.) for revenue diversification |
| h) Buyout / purchase exercise mechanic | 60-day notice; closing within 90-120 days of notice; standard title/survey contingencies |
| Year | Tenant / Building | Sqft | $/sqft | Notes |
|---|---|---|---|---|
| Jan 2025 | EoS Fitness, Dallas | 40,000 | Not disclosed | Big-box backfill of vacant space |
| Oct 2025 | Look Dine-In Cinemas, Bedford TX | 48,914 | Not disclosed | Theater-conversion lease, modern theater operator |
| Dec 2025 | IKEA, Park Lane Dallas | 63,000 | Not disclosed | Major retail backfill |
| 2025 | Amarillo retail benchmark | n/a | $16.57 NNN | Market average, NOT theater-specific |
| 2025 | Amarillo Coronado Shopping | n/a | $15.48 (B+NNN) | Healthy neighborhood retail |
Most large-format Texas leases in 2025 do not publicly disclose $/sqft. The $16-18 retail benchmark is the public floor; theater special-purpose conversions trade well below that.
All numbers below are negotiation-anchor positions, designed for a strong opening posture with room to give. Mark as RECOMMENDED, not GUARANTEED.
| Term | Value | Rationale |
|---|---|---|
| Tenant | Power Church (TX 501(c)(3)) | Verified non-profit |
| Landlord | Cinergy 110 LLC | Current owner |
| Premises | 8275 W Amarillo Blvd, full 83,422 sqft | Entire building |
| Lease type | Triple Net (NNN) | Cinergy’s expenses go to zero |
| Term | 5 years base + option to buy | Aligns with 5-yr option norm |
| Base rent (post-abatement) | $8/sqft NNN annual = $667,376/yr = $55,615/mo | Mid-point of $7-10 estimated market for vacant theater; below Amarillo retail avg by ~50% reflecting special-purpose discount |
| Free rent / construction abatement | 12 months from lease commencement | Distressed-property norm; Littleton CO precedent; Power Church still pays NNN (taxes/ins/utilities) during this period |
| Reduced rent / ramp | Months 13-24 at 50% ($27,807/mo), then full rent month 25+ | Phased ramp standard for new tenants in special-purpose conversions |
| TI allowance from landlord | $10/sqft = $834,220 (or zero in exchange for deeper rent abatement) | If Cinergy refuses TI cash, take the trade as additional 6 months free rent |
| Option to purchase price | $5,500,000 (set at lease signing, fixed for 5 years) | Anchored to Cinergy’s likely cost basis from 2023 acquisition; well below new construction |
| Rent credit toward purchase | 40% of rent paid credits to purchase price | High end of 10-30% norm justified by long vacancy, distressed disposition, 501(c)(3) tenant |
| Estimated rent credit accumulation by month 60 | ~$1,000,000-1,200,000 | Effective net purchase price ~$4.3M-$4.5M |
| Right of First Refusal | YES, throughout term | Protects Power Church from third-party offers |
| Right of First Offer | YES | If Cinergy decides to sell mid-term, Power Church gets first look |
| Option payment (upfront) | $50,000 (1% of option price), credited to purchase if exercised, non-refundable if not | Low end of 1-5% norm; demonstrates seriousness |
| Permitted use | Religious assembly, education, community center, ancillary cafe/bookstore | Broadest reasonable scope |
| Maintenance/repairs | Tenant responsible (true NNN) | Standard |
| Insurance | Tenant carries general liability + property; Cinergy named additional insured | Standard |
| Property taxes | Tenant pays (501(c)(3) may qualify for partial exemption — investigate separately) | Tax exemption is potential additional value |
| Default/cure | Standard 30-day cure for monetary, 60-day cure for non-monetary | Reasonable |
| Assignment | Permitted to wholly-owned affiliate of Power Church without consent | Protects future structure |
| Line | Status Quo (vacant) | Power Church Master Lease |
|---|---|---|
| Rental income | $0 | $0 (free rent year 1) |
| Property taxes | (~$80,000) Cinergy pays | $0 — Power Church pays |
| Insurance | (~$30,000) Cinergy pays | $0 — Power Church pays |
| Security/maintenance | (~$60,000) Cinergy pays | $0 — Power Church pays |
| Net Cinergy P&L | (~-$170,000) | ~$0 |
| Year 2+ | Continued bleed | $300K-$667K annual rent |
Cinergy’s net improvement Year 1 alone: ~$170,000 swing. Over 5-year lease term: $1.5M-$3.5M of value capture vs. status quo, plus an option-strike sale at $5.5M (potentially netting $4.3-$4.5M after rent credits).
| Year | Rent | TI | Notes |
|---|---|---|---|
| 1 | $0 (free) | Pay NNN ~$170K | Construction year |
| 2 (months 13-24) | $333,688 | NNN ongoing | Ramp phase |
| 3 | $667,376 | NNN ongoing | Full rent |
| 4 | $667,376 | NNN ongoing | Full rent |
| 5 | $667,376 | NNN ongoing | Full rent |
| Total rent paid | ~$2,335,816 | ||
| Rent credit at 40% | ~$934,326 | ||
| Effective net purchase price if option exercised at month 60 | $5,500,000 - $934,326 = $4,565,674 |
| Cinergy pushback | Power Church fallback |
|---|---|
| “$5.5M too low” | Move to $6M ceiling, demand additional 6 months free rent + 50% rent credit |
| “Free rent too long” | Compress to 6 months free + 50% rent for months 7-18 |
| “Won’t do TI allowance” | Accept zero TI, demand additional 6 months free rent (worth ~$334K) |
| “Won’t fix option price for 5 years” | Accept 3-year option period with 2-year extension, pricing CPI-indexed |
| “Won’t grant ROFR” | Walk if not granted — non-negotiable from Power Church |