A&G Real Estate Partners, in its capacity as real estate advisor to Bed Bath & Beyond, plans to auction hundreds of Bed Bath & Beyond and buybuy BABY leases as part of the company’s Chapter 11 case, subject to court approval of bid procedures.
On April 23, Bed Bath & Beyond and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey to implement an orderly wind down of its businesses while conducting a limited marketing and sale process to solicit interest in some or all of the company’s assets.
Subject to court approval, New York-based A&G plans to auction Bed Bath & Beyond and buybuy BABY leases at shopping centers across the United States. A&G and JLL Commercial Real Estate also plan to market an owned North Carolina data center, as well as leases for warehouses and distribution centers.
The Bed Bath & Beyond stores, located in 48 states and Washington, D.C, range in size from 18,000 to 92,000 square feet. The buybuy BABY stores, located in 37 states, range from 14,000 to 63,000 square feet.
“There are many desirable, strategically located stores with both high visibility and traffic,” Emilio Amendola, co-founder at A&G, said. “Moreover, these leases represent an incredible opportunity for an array of operators nationwide due in part to the tremendous diversity of size ranges in play.”
“With limited new construction, acquiring leases at auction is an efficient way for junior anchor tenants to meet growth goals by backfilling second-generation space,” Mike Matlat, senior managing director at A&G, said. “We anticipate very strong interest from national, regional and local players.”
“Landlords are among the likeliest bidders for these leases. They’re looking forward to getting vacant spaces back, either to backfill them with single large-format tenants or subdivide them and re-lease them to multiple smaller operators.”
“Retailers and other operators across the country have had few opportunities to acquire attractive leases at auction over the past few years,” Todd Eyler, senior managing director at A&G, said. “It’s something they have been waiting for, especially the ability to bid for leases in robust submarkets such as those that have long been the focus of Bed Bath & Beyond.”
The warehouse and data center locations range in size from 189,000 to more than 1 million square feet and are available in six states: California, Georgia, Pennsylvania, Nevada, New Jersey and Texas. The company-owned data center is located in Claremont, NC.
“Several of these well-located facilities boast below-market, fixed-rent leases with one or more renewal options,” Matlat said. “They represent a strong opportunity for users or investors who are eager to capitalize on the existing rent spreads.”
