Tenant Update

Toronto - Sears Canada Inc. has closed a transaction to sell and leaseback three properties to Concord Pacific Group of Companies. The transaction, originally announced on March 11, 2015, has closed for total proceeds of $140 million.

Simon is expanding the hugely successful Sawgrass Mills outlet and entertainment center in Florida by adding a new, full-price component.

Oak Brook, Ill. -- Retail Properties of America Inc. announced that Macy’s new off-price format, Macy’s Backstage, has signed a 35,200-sq.-ft. lease at Fordham Place in the Bronx, New York, as RPAI continues to execute on its remerchandising strategy of upgrading its tenancy and enhancing the dominance of its shopping centers.

Framingham, Mass. -- X Team International, an international alliance of retail real estate advisors with expertise in more than 45 major markets throughout the U.S. and Canada, announced that partner, Strategic Retail Advisors (SRA), a retail real estate consulting and brokerage firm focused on tenant representation throughout the Northeast, has successfully negotiated a lease on behalf of accessories retailer Charming Charlie.
   

New York -- Rising rents are causing another national chain to exit a high-profile location in Manhattan. Home-furnishings retailer Crate & Barrel will close its flagship on Madison Avenue (at 59th Street) on Aug. 2, after negotiating an early exit from its lease, according to the Wall Street Journal. The store opened in 1995.

The closing will leave the city with just one Crate & Barrel, in the Soho section of downtown Manhattan.

Crate & Barrel is joining Toys"R"Us and other retailers shutting down Manhattan flagship locations due to skyrocketing rent prices.

New York -- Gap Inc. is eyeing the 110,000-sq.-ft. Toys “R” Us flagship at 1514 -1530 Broadway, according to The Real Deal.

Sources say the specialty apparel retailer may split the space between Old Navy and Gap stores.

The massive retail space comes with a hefty price tag: the ground floor alone goes for $2,500 per square foot per year in rent, while the top floor is going for $150 per square foot, and the basement for $350 per square foot.

Gap Inc. is eyeing the 110,000-sq.-ft.

Hingham, Mass. -- WS Development and Derby Street Shoppes continue to add new and exciting retailers to the vibrant mix of existing shops, boutiques and restaurants by announcing the opening of DavidsTea and Sephora. DavidsTea, expects to open its only location on the South Shore in mid-summer, while perfume and cosmetics retailer, Sephora, hopes to open later this year.

The rebound in the nation’s economy is boosting retail sales and spurring an uptick in the number of retailers seeking to expand their presence in existing markets or grow into new trade areas. However, the boom does have a downside for those tenants, as most are finding out.