As the party ends for the New Jersey-based business, nearly 700 Party City store leases will go up for auction.

Party City Holdco Inc. real estate advisor A&G Real Estate Partners announced plans to offer 695 store leases across 44 states. New Jersey boasts 26 available Party City locations.

Going-out-of-business sales are currently underway at the retailer. Party City filed a second bankruptcy petition in December, signaling the end to nearly four decades of celebration shopping.

According to A&G, the bid deadline and auction will likely take place in early February. Available footprints range from 7,000 square feet to 46,000 square feet, the company said. Leases include freestanding stores as well as shops in power centers, retail strips and city street locations. No fee-owned properties are available in the auction, A&G said.

“This is a large and diverse store portfolio, with good real estate and a great many stores located in high-traffic shopping centers,” commented A&G co-President Emilio Amendola, also leader of the New York-based company’s real estate sales division. “This auction represents an extraordinary opportunity for expanding operators in what marks the end of an era in the retail industry.”

A&G Senior Managing Director Mike Matlat added that the spaces should appeal to a variety of “strong candidates.”

“The list includes gyms and entertainment tenants, dollar stores, local specialty retailers, furniture stores, and medical office clinics,” Matlat said.

(Local) opportunity awaits

Texas offers the most available leases, with A&G listing 72 locations in the Lone Star State.

In the space-constrained Garden State, where sector construction has trended downward, the rush of availabilities could present opportunities.

Post-pandemic vacancy declines continue to persist in North Jersey, according to Marcus & Millichap’s latest Retail Market Report. At 3.3% as of June 2024, M&M said the area boasted the sixth-lowest vacancy rate on the East Coast in its Q4 assessment.

Citing favorable vacancy trends in the central and suburban parts of the state, the report highlights increased multifamily construction and delivery as a boon to retail demand.

According to A&G, within New Jersey base rents per square foot on available leases range from $10.51 (Millville) to $35.53 (Paramus). Meanwhile, local availabilities range from a little more than 9,000 square feet (Jersey City) to 46,000 square feet (Rockaway).

The complete store list is available here.

According to A&G, the auction will take place at the Manhattan office of PCHI legal counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP, located at 1285 Avenue of the Americas.

Additional details, including bid procedures as well as remaining lease terms are available from A&G. Interested parties can contact Amendola (631-465-9507, [email protected]), Matlat (631-465-9508, [email protected]) or A&G Senior Managing Director Doug Greenspan (310-770-7832, [email protected]).