Sears (SHLD) spun-off some of their real estate into a REIT called Seritage (SRG) last year. It is made up of 235 properties, 93% of which are Sears and Kmarts. This is about 37 million square feet of retail space. SRG has 50% of JVs with General Growth Properties ( GGP), Simon ( SPG), and Macerich ( MAC) covering another 31 properties.
The key to SRG is the lease deal with Sears worth about $4.60 per square foot. The agreement gives a lot of valuable flexibility to SRG to release to third party tenants. The recapture rights allow SRG to reclaim as much as 50% of the gross leasable area of properties for releasing.
Based on the releasing opportunity, SRG is probably worth $60, give or take $10 within the next two years. This was a tremendous bargain at $35 and is still respectable at $40. Buffett read the small print and seized a mispriced opportunity. Today, SRG is worth at least 15% more than it costs
You can also get 15% off of Sears gift cards on eBay. Some buyers will get as much as 23% off when combined with an eBay offer good until tomorrow (this eBay bucks offer is good for some customers but not others).