137 Modell’s Sporting Goods Leases Up for Grabs
- Mar 17, 2020
Modell’s Sporting Goods has tapped A&G Real Estate Partners to spearhead the marketing of 137 of its store leases spanning the Northeast and Mid-Atlantic. The lease portfolio announcement comes just days after Modell’s, a veritable institution in New York City, revealed it had voluntarily filed for Chapter 11 bankruptcy protection following more than 100 years in business.
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The collection of leases covers nearly 100 locations in New York and New Jersey, as well as spaces in Connecticut, Delaware, Massachusetts, Maryland, New Hampshire, Pennsylvania, Virginia and Washington, D.C. Ranging in size from 6,800 square feet to 32,700 square feet, the stores average 17,500 square feet in size and can be found in leading highway retail centers, regional malls and mixed-use buildings in bustling central business districts. Among the most notable sites in the group is the 13,300-square-foot space at 430 Seventh Ave. at the rear base of Manhattan’s One Penn Plaza mixed-use office and retail tower, which is undergoing a sweeping transformation into Penn 1 at the hands of owner Vornado. Current base rent for the store is $189.76 per square foot.
A&G is no stranger to tackling vacated retail portfolios. In 2019, the firm completed the sale of The Bon-Ton Stores Inc.’s last remaining department store properties in a bankruptcy auction on the heels of having sold other Bon-Ton fee-owned assets and leases to landlords, storage users, developers/investors, fitness centers, home furnishings retailers and health-care users.
Plugging holes retail
Despite speculation about the death of the mall and fears of a retail apocalypse over the last few years, the U.S. retail sector is still standing. And while retailers like Modell’s, Bon-Ton and recent bankruptcy filer Pier 1 Imports add to market vacancies with store closures, other names are picking up square footage. Chain Store Guide reports that American Eagle Outfitters Inc. plans to open as many as 70 Aerie stores in 2020 and Bridgestone Retail Operations LLC expects to expand its footprint with the addition of 50 auto care and tire stores this year. “More retail stores are opening than closing,” according to CBRE’s U.S. Real Estate Market Outlook 2020. “Thousands of new stores will open nationwide in 2020, including by once online-only retailers that recognize the brand value of a physical store.”