All Rag Shops Leases Are On the Block

HAWTHORNE, NJ-The Rag Shops fabric and crafts chain, which is in the process of shutting down, has sold the designation rights to all of its 61 location leases to DJM Realty. The leases range from 7,000 sf to 20,000 sf in freestanding, strip and mall locations New Jersey, Connecticut, Florida, New York and Pennsylvania.

“We purchased the designation rights because most of the leases throughout the portfolio have below market rents,” says Michael Jerbich, senior managing director of the Melville, NY-based DJM Realty, who’s heading the disposition. “They are located in centers that traditionally have been very difficult to get into and are very desirable to retailers.

“We plan to conduct an auction to sell each lease individually in late July,” Jerbich says. “Given the value in the leases and the amount of interest we’ve already received, interested parties should act immediately.”