Supermarket operator Great Atlantic & Pacific Tea Co. has tentatively agreed to sell its leases for three stores, including the Waldbaum's in Melville, to shopping center owner and operator Federal Realty Investment Trust for $6.35 million, court records show.
Federal Realty, based in Rockville, Maryland, is looking to pay $700,000 for the lease of the Waldbaum's in Melville, $1.4 million for the lease of an A&P store in Brick Township, New Jersey, and $4.25 million for the lease of a Pathmark in Parsippany, New Jersey, according to a Friday filing with the U.S. Bankruptcy Court in White Plains.
Federal Realty is the landlord of the Melville Mall, on Route 110 off the Northern State Parkway. The nearly 54,000-square-foot Melville Waldbaum's store is located in the mall, owned by Solal Realty Limited Partnership, which, in turn, is owned by AVR Realty Company, of Yonkers. Federal Realty did not respond to requests for comment.
Supermarket chain Food Bazaar, based in Brooklyn, has also agreed to buy four stores in Brooklyn and New Jersey for $11.75 million as part of A&P's bankruptcy auction. Bogopa Service Corp., owner of Food Bazaar, already owns 18 stores in the tristate area, with none on Long Island.
If competing bids emerge, A&P will hold an auction for the stores on Oct. 8.
If other bidders win, they must pay Federal Realty a breakup fee of up to $190,500 and Food Bazaar a fee of up to $352,500.
Separately, on Thursday and Friday, A&P will hold two auctions for 104 stores, including 25 Waldbaum's and Pathmark locations on Long Island, court records filed late Monday show.
On Thursday, A&P will auction stores in Mount Kisco, New York City, Westchester County and northern New Jersey. On Friday, it will conduct auctions for Long Island, Philadelphia, South Jersey and New Jersey shore stores.
So far, more than 100 bidders have submitted about 300 bids combined for stores listed to be auctioned. The deadline for qualified bidders is 5 p.m. Tuesday.
The Long Island list of stores to be auctioned excludes the Melville Waldbaum's, as well as the three stores already bid on by Wakefern Food Corp., the parent company of ShopRite. The list also excludes the nine locations Stop & Shop agreed to acquire. It also excludes the five supermarkets on Long Island that A&P announced it plans to close.
A&P filed for Chapter 11 bankruptcy protection from creditors in July.