Dollar Tree has submitted the winning bid for the former Party City space in the Montgomery Square Shopping Center in Montgomery Township, writes Tony Di Domizio for North Penn Now.
Dollar Tree and Five Below acquired several former Party City locations across the country at a recent auction, securing a total of 148 leases from the bankruptcy proceedings of the struggling retail chain.
The deal was approved on February 21. The two discount retailers paid $1 million upfront along with an extra $65,000 for each lease agreement beyond ten leases.
Party City auctioned off a total of 250 properties, with other retailers, including Rack Room Shoes, Barnes & Noble, and La-Z-Boy, also snatching up several locations.
Dollar Tree has been on an expansion spree, adding over 500 new locations in the past year, with plans to open 600 more.
“We’ve seen the uptick in closures and bankruptcies, but the flip side we’ve seen that really strong demand to backfill that space, at least where it’s well-located and not cannibalizing the existing footprint of retailers,” said Brandon Svec, national director of US retail analytics at CoStar.
Read more about the sale in North Penn Now.
