Jaime W. Weiss, president of Moonachie-based Weiss Realty, tells GlobeSt.com that Drug Fair had leased the same spot, but never moved in due to its March bankruptcy filing. That freed up the space for Dollar General, which was looking for a location in Northern New Jersey. According to the Dollar General website, the Nashville-based chain has 22 stores in New Jersey.
The 24,000-square-foot property, located at 419 Market St., was formerly an A&P supermarket. Advance Auto Parts leases 7,000 square feet in the same building.Weiss says the rental rate is more than Dollar General typically pays for its leased properties. Without divulging specifics, he says the rate is less than the $19 per square foot Drug Fair had originally signed for in its deal.
The retailer, which operates more than 8,000 stores throughout the US, was drawn to this particular location because the demographics were "overpowering," Weiss relates. In addition to bringing in local residents, the store will also attract customers from the surrounding towns of Elmwood Park, Lodi, Garfield and Hackensack. Further, the lease is bigger than Dollar General's typical contract for between 9,000 and 10,000 square feet, Weiss notes.
The deal represents a shift in consumer spending habits toward discounters. "Five years ago, a landlord would not have wanted a 'dollar store' in their shopping center," he explains. However, he points out that Dollar General is a creditworthy tenant that offers a mix of quality merchandise in a well-maintained setting, making it a viable alternative for landlords. "The message is that a new generation of retail tenants is prospering," Weiss declares.
Consultant Tim Keeley of Julius M. Feinbloom Real Estate, Inc. advised Dollar General in the lease. Weiss Realty also brokered a land lease near the building on which Capital One Bank will build a 2,400-square-foot drive-through branch. Construction will begin this summer.
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