TJX Closing 2 New York City Stores
A T.J. Maxx in Downtown Brooklyn and a Marshalls in the Bronx are shutting their doors in January, a somber note in what has otherwise been a year of recovery for the city's retail sector.
The TJX Cos., the discount retail conglomerate that owns the chains, filed notices with the New York Department of Labor Wednesday that it plans to close the T.J. Maxx location at 503 Fulton St. in Brooklyn and the Marshalls store at 610 Exterior St. in the Bronx. Both stores are expected to close by Jan. 6, just after the holiday shopping season.
"We are always assessing and reviewing our real estate strategies, and our decision to close these stores as we approach the end of their lease terms reflects that thinking," a TJX spokesperson told Bisnow in an emailed statement. "We have offered all our Associates in these two stores other jobs in nearby locations. We are grateful for the loyalty of our New York City customers and invite them to visit our nearby stores to continue to find great values."
The Marshalls store occupies nearly 40K SF in the Bronx Terminal Market retail center owned by the Related Cos. The 500K SF center, not far from Yankee Stadium, is anchored by a Target and a Home Depot. A Related spokesperson didn't respond to a request for comment.
Marshalls originally signed the lease in 2009 with a 2019 expiration, according to a Morningstar rating commentary from 2014 on the center's CMBS loan. It is unclear when the lease was extended or when it expires. Related's $380M CMBS loan on the property matures in May. The most recent occupancy reported for the complex was 94% at the end of June, according to the Morningstar Credit database.
The T.J. Maxx store closing in Brooklyn is in a building also occupied by fellow retailers Old Navy and Nordstrom Rack and is owned by local landlord United American Land. The tenant signed a 23K SF lease in 2011 for the below-ground space in the former factory building.
A United American Land representative didn't return Bisnow's message seeking comment. The landlord signed a $65M mortgage on the seven-story building in 2017, The Real Deal reported. It has 121 residential units atop multiple stories of retail.
While retail availability in the city has tightened in some corners since the worst of the pandemic, a surge of residential construction with ground-floor retail coming online in the outer boroughs could present supply challenges for retail landlords grappling with vacancy. Roughly 600K SF of retail space was under construction in Brooklyn alone as of June, according to Marcus & Millichap. Retail vacancy in the city overall was at 4.3%, the highest point since 2013, according to the brokerage.
