A&G Real Estate Partners, in its capacity as real estate advisor to Party City, today announced plans to auction 12 leases in seven states as part of the retailer’s financial restructuring.
Andy Graiser, co-president of A&G, commented: “Given the high cost of new construction in today’s marketplace, the lack of new development, and the strong attributes of many of these Party City locations, we expect good interest from local and regional tenants who see this as an opportunity to open in a fully built-out retail box and begin doing business within three months.”
A&G’s role also includes advising on lease portfolio strategy as Party City looks to strengthen its financial position by reducing its debt and optimising its capital structure and liquidity. The restructuring is expected to be completed in the second quarter of 2023.
Marc Ehle, Party City’s evp of enterprise operations, added: “Our work on o9ur lease portfolio is moving very quickly, with a plan for us to exit locations that do not meet the key financial metrics required for our go-forward fleet.”
The initial leases being offered are located in New York, Missouri, Michigan, Oklahoma, Oregon, Mississippi and West Virginia.
