An empty Toys “R” Us store (Credit: iStock)
Former Toys “R” Us stores are selling quickly in the wake of the company’s bankruptcy.
The retailer has closed roughly 800 stores this year, and buyers have been scooping them up quickly thanks in part to their relatively long leases and cheap rents, according to the Wall Street Journal. The stores’ wide variety of configurations and sizes is also increasing demand, as it makes them well-suited for new tenants ranging from auto dealers to health-care providers.
This has not always been the case with failed retailers. Sports Authority, for instance, filed for bankruptcy in 2016 and struggled to sell its stores. The chain sold roughly a third of its 450 stores after 18 months, although demand eventually picked up.
Not all former Toys “R” Us locations have moved, though: some locations didn’t even receive bids, and at least 268 store leases were rejected.
Meanwhile, A&G Realty Partners has handled the sales for 567 Toys “R” Us sites and sold 209 of them during auctions.
“It’s a great showing,” A&G co-president Emilio Amendola told the Journal. ”If you sold 10 percent, you’d be dancing in the streets.” [WSJ] – Eddie Small
Source: The Real Deal Los Angeles