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Decron Properties has signed discount retailer, Dollar Tree to a long-term lease for 9,459-square feet at its Merced Marketplace, a 250,000-square-foot power center in the Central California City of Merced.
Negotiating and finalizing a retail lease transaction amid market uncertainty spurred by the COVID-19 pandemic was no small feat, according to Decron’s Commercial Division Director Tim Kushner.
“The lease, which reflected the evolving situation in midst of the economic crisis triggered by the Covid-19 pandemic, was challenging,” Kushner said. “We were in uncharted territory, but both sides were committed to seeing the deal through to its completion, negotiating fairly, which allowed us to overcome hurdles along the way.”
The lease with Dollar Tree is the latest of a series of deals dating back to the Fourth Quarter of 2019 that Decron has successfully executed. The first was a long-term lease with Ashley Furniture to lease 31,180-square-feet in the center, followed by a deal with Work World that signed a long-term lease in January 2020 for 11,622-square feet. With the lease with Dollar Tree, the 26-acre center is now 100 percent leased.
Merced Marketplace is located at 1720-1786 West Olive Avenue, Merced’s prime retail corridor with a daily traffic count of approximately 46,000 automobiles. Anchored by Lowe’s Home Improvement Warehouse, the center’s other major tenants include Barnes & Noble, Big 5 Sporting Goods, Panda Express, Applebee’s, and Del Taco.
Dollar Tree will occupy a space previously leased by Pier 1 Imports, which filed for bankruptcy earlier this year. The discount retailer, which has two other stores in Merced, is expected to move into its new location by end of summer.
Rick Amerine of Cushman & Wakefield Pacific Commercial Realty Advisors represented Decron in the transaction. Tim Bettencourt of CoSol Commercial Real Estate represented Dollar Tree.