Northeast Market Profile Case History: Fashion Bug Disposition
Disposition firm: A&G Realty Partners
Number of properties: 600
Locations: 95% in strip centers, with the balance in middle market malls across the United States
Status: A&G successfully terminated more than 300 leases. The balance had natural lease expirations.
Last year, the Ascena Retail Group Inc. acquired Charming Shoppes for more than $900 million. Ascena wanted Charming Shoppes’ three apparel chains: Fashion Bug, Lane Bryant and Catherines Plus Sizes. Eventually Ascena decided to close the troubled Fashion Bug and dispose of the brand’s 600 locations. The company brought in A&G Realty to handle the disposition. A&G reviewed the list of stores with other women’s apparel retailers, while approaching growing retailers and brokers in individual markets around the country. When retailers showed interest, A&G negotiated lease assignments with landlords. When stores couldn’t be placed, A&G negotiated lease terminations with the landlords. The effort succeeded thanks to the comprehensive communications effort by A&G and a retail real estate environment with little to no new development and landlords motivated to replace old leases at below-market rents with new leases.
Project Profile: Yorktown Centre
Location: Downtown Erie, Pa.
Size: 196,728 sq. ft.
Developer: Existing property acquired in August 2013 by Phillips Edison-ARC Shopping Center REIT Inc.
Major tenants: Giant Eagle, Panera Bread, The UPS Store, GNC, Wells Fargo, Eat’n Park
Yorktown Centre is located in a densely populated trade area in downtown Erie, Pa., less than a mile from I-79. In addition to the primary trade area’s 71,000 residents, the 1-mile radius includes nearly 310,000 sq. ft. of office space, where more than 11,300 employees work every weekday. Anchor Giant Eagle, the region’s dominant grocer, is currently carrying out a comprehensive renovation of the Yorktown Centre store, which will further strengthen the attraction of this popular, 100% occupied center.
Project Profile: Marlton Crossing
Location: 101 S. Route 73, Marlton, N.J.
Size: 333,255 sq. ft.
Developer: Brixmor Property Group
Major tenants: T.J. Maxx, DSW, HomeGoods, Michaels, Burlington Coat Factory, Five Below
Located in an affluent trade area with a 5-mile average household income of more than $117,000, Marlton Crossing is anchored by a strong mix of national retailers, including Burlington Coat Factory, DSW, HomeGoods and T.J. Maxx. It recently expanded onto adjacent property with a 22,000-sq.-ft. Michaels, which opened in October 2013.