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“Homebuying momentum is building after nearly two years of suppressed home sales,” said NAR Chief Economist Lawrence Yun.
MELVILLE, NY—Days after sporting goods retailer Modell’s Sporting Goods filed for Chapter 11 bankruptcy, Melville, NY-based A&G Real Estate Partners is marketing 137 Modell’s store leases in nine Northeastern and Mid-Atlantic states and the District of Columbia.
The retailer, founded in 1889, operates 153 stores located in New York, New Jersey, Pennsylvania, Connecticut, Rhode Island, Massachusetts, New Hampshire, Delaware, Maryland, Virginia and Washington, DC.
An auction date and a deadline for bids had yet to be announced at press time. The available stores average 17,500 square feet and range in size from 6,800 to 32,700 square feet.
“This iconic brand had an extraordinary real estate strategy, with the family-owned business assembling one of the strongest portfolios of top retail locations in New York City’s five boroughs—an area with significant barriers to entry,” said A&G Co-President Emilio Amendola. “Similarly, the vast majority of Modell’s sites on Long Island and in New Jersey, Pennsylvania, New England and the Mid-Atlantic are ‘A’ locations with very advantageous rent structures. Opportunities like this come around once every 10 years.”
“Over the past year, we evaluated several options to restructure our business to allow us to maintain our current operations. While we achieved some success, in partnership with our landlords and vendors, it was not enough to avoid a bankruptcy filing amid an extremely challenging environment for retailers,” Modell’s Chief Executive Officer, Mitchell Modell said when announcing the firm’s Chapter 11 bankruptcy filing and liquidation on March 11.
He added, “We are extremely appreciative of the support that our lenders (JP Morgan Chase and Wells Fargo), vendors and landlords provided during this difficult period, engaging in extensive renegotiation efforts and allowing us to pursue every possible avenue to preserve the jobs of our loyal associates. This is certainly not the outcome I wanted, and it is one of the most difficult days of my life. But I believe liquidation provides the greatest recovery for our creditors.”
Of the 137 store leases available, many are in the New York-New Jersey-CT region. Among the leases available in the HGAR market area, which includes the Bronx and the Hudson Valley, include: four locations in the Bronx—945 White Plains Road, 18,300 square feet; 260-270 East Fordham Road, 12,100 square feet; Bay Plaza Shopping Center, 16,645 square feet and 204 E. 161st St., 15,009 square feet.
Locations in the Hudson Valley region include: 23 Centre Drive, Central Valley, 19,500 square feet; Route 119-459 Tarrytown Road, Greenburgh, 19,623 square feet; Orange Plaza, 470 Route 211 E., 18,080 square feet; 3099 E. Main St., Mohegan Lake, 15,300 square feet; 162 E. Main St., Mount Kisco, 10,000 square feet; 110 Rockland Plaza, Route 59, Nanuet, 21,973 square feet; 19 LeCount Place, New Rochelle, 17,000 square feet; 843 Pelham Parkway, Pelham Manor, 23,500 square feet; 421 Boston Post Road, Port Chester, 21,894 square feet; 2600 South Road, Suite 4, Poughkeepsie, 17,500 square feet; and 2543 Palisades Center Drive, West Nyack, 18,961 square feet.
Modell’s has partnered with Tiger Capital Group to liquidate its remaining stores beginning Friday morning, March 13.
“The return from the liquidation of the first 19 stores managed by Tiger has been beyond spectacular, and we are confident this performance will continue across the remaining stores, maximizing return for our creditors,” Modell stated.
The company has been engaged in discussions with its financial creditors and has been exploring a recapitalization of the business through a potential sale of some or all of its assets or an equity investment. The company will continue to pursue these discussions.
Robert Duffy, managing director, BRG, has been named Chief Restructuring Officer of the company. RBC Capital Markets is acting as investment banker for the company; BRG is also acting as the company’s restructuring advisor, Cole Schotz is the company’s legal counsel and A&G Realty Partners is marketing the store leases.
For more information on the available leases, visit www.agrep.com or contact Emilio Amendola, emilio@agrep.com, (631) 465-9507; Mike Matlat, mike@agrep.com, (631) 465-9508; or Todd Eyler, todd@agrep.com, (631) 465-9510
“Homebuying momentum is building after nearly two years of suppressed home sales,” said NAR Chief Economist Lawrence Yun.
Most of the counties in the HGAR market area are considered “high-cost areas” by the FHFA.
NAR officials noted yesterday that the court heard from all parties as well as objectors and the Department of Justice. Once arguments concluded, the court quickly ruled to grant final approval.
Outdoor space was especially important to movers to the Midwest, while movers to the Northeast were particularly driven by the need for more square footage and a better work commute.
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