The Scarlett’s Cabaret strip club in Pembroke Park was purchased for $25.95 million by RCI Hospitality Holdings, the public company announced.
Located at 2920 S.W. 30th Ave. just off Interstate 95, the club was sold by JW Lee Inc. State records show that JW Lee recently changed its managing director from Brandon Samuels to Eric Langan, the president and CEO of Houston-based RCI Hospitality Holdings (Nasdaq: RICK).
“We’re excited about Scarlett’s Cabaret Miami joining our portfolio of high quality clubs in key markets,” Langan said. “It is a different kind of venue, combining a high-energy Miami/Las Vegas style nightclub that attracts both male and female customers for drinks, dining and dancing, with a high-end gentlemen’s club, featuring beautiful entertainers every night. Scarlett’s also tends to attract a different clientele from our 74,000 square foot Tootsie’s Cabaret, which is five miles south, making the two clubs complementary to each other.”
Scarlet’s Cabaret generated about $13 million in revenue in the previous 12 months and adjusted EBITA of more than $6 million, RCI said.
RCI said the deal included $5.4 million in cash up front, another $5 million after six months, and seller financing of $15.55 million over 12 years at 8 percent interest. The deal also included the right to license the Scarlett’s Cabaret name.
“Geographically, it expands our presence in the attractive South Florida market, enabling us to own two of the best and largest venues, with close to 100,000 square feet combined. Having them in relatively close proximity is expected to enhance and improve the cost effectiveness of our marketing, purchasing and operations,” Langan said.
The 20,893-square-foot nightclub was built on the 1.16-acre site in 1974. The property is owned by John R. Marino and Ann M. Marino and leased to the nightclub for another 21 years.
RCI owns 44 strip clubs.