Post-Bankruptcy Modell's Taps A&G Real Estate to Auction Leases
Modell’s Sporting Goods has 137 leases up for grabs as the retailer has just recently filed for Chapter 11 bankruptcy and liquidation and has tapped A&G Real Estate Partners to begin marketing them.
NEW YORK CITY- Modell’s Sporting Goods has 137 leases up for grabs as the retailer has just recently filed for Chapter 11 bankruptcy and liquidation and has tapped A&G Real Estate Partners to begin marketing them. The store leases are in nine Northeastern and Mid-Atlantic states and the District of Columbia. The 111-year-old retailer has made its leases available online for auction at Agrep.com, for which a deadline has not been set and will be announced at a later date.
“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 in a prepared statement. “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.”
The available stores average 17,500 square feet and range in size from 6,800 to 32,700 square feet. “In addition to favorable rents, many of the leases offer multiple renewal options,” he said.
The locations are situated in highway retail centers, central business districts and regional malls, offering opportunities for specialty retailers, restaurants, medical tenants and other uses, according to Amendola.”Given the quality of this real estate, we anticipate a robust response,” he said.
A&G and Modell’s have partnered in the past on both the sale and re-negotiation of leases, according to Mitchell Modell, CEO of Modell’s. Bob Duffy, managing partner of BRG and chief restructuring officer of Modell’s, said in a prepared statement, “A&G has always delivered maximum returns to the creditors in these unfortunate circumstances. We are confident they will do that in this case as well.”