Nine more Party City leases going up for auction

More Party City leases are going on the auction block.

A&G Real Estate Partners, real estate advisor to Party City Holdco Inc. in its expedited financial restructuring, plans to offer nine additional Party City leases in an auction on Friday, April 28. (Locations listed at end of article.) The bid deadline is Monday, April 24. The newly available locations range in size from 10,000 to 21,000 sq. ft. Some are freestanding, while others are in power centers, strips or city street locations. 

A&G also announced the results of the April 14 auction it conducted at which national retailers Michaels and Five Below acquired five Party City leases. Michaels acquired four leases, for locations in Corpus Christi and Dallas, Texas; Alexandria, La.; and Irondequoit, N.Y.

Five Below acquired a Party City lease in Alameda, Calif. The auction results are pending Bankruptcy Court approval.

A&G said it remains engaged with landlords to support Party City’s real estate optimization strategy. Party City filed for Chapter 11 bankruptcy protection in January. Upon filing, the retailer received access to $75 million of a $150 million debtor in possession loan and reached a pre-negotiated agreement with a bondholder group to support an "expedited restructuring" that would substantially reduce its debt and “optimize its capital structure and liquidity.” The company expects the restructuring to be completed in the second quarter. 

The latest round of leases, made available after terms were not reached with the respective landlords, includes the following locations:

• California (Marina, Palmdale, Lodi);
• Indiana (Noblesville);
• New York (Bronx, Staten Island);
• Ohio (Lancaster);
• Oklahoma (Midwest City); and
• Michigan (Walker).

Potential users include gyms, dollar stores, local retail operators, furniture users, local specialty retailers, and non-retail users such as medical office clinics.

For additional details, including bid procedures as well as remaining lease terms for individual locations, contact A&G senior managing director Mike Matlat, [email protected], or A&G managing director Alexandra Graiser,  [email protected].

The full store list is available here.