QUEENSBURY — Aldi has won the bidding for the lease on the former Toys R Us building in Queensbury, but the landlord isn’t happy.
“We have a different tenant that wanted the space,” said Steve Powers, vice president of Nigro Companies.
The building, on Upper Glen Street, is owned by Nigro Companies of Albany. But the company could not simply advertise to fill the lease that Toys R Us held. When Toys R Us entered bankruptcy court, all of the company’s leases were auctioned off in two waves, with the second wave happening on Sept. 27.
That’s when Aldi won the Queensbury lease.
“They were the successful bidder at the auction,” said Todd Eyler, managing director at A&G Realty Partners, which ran the auction.
The building is currently being rented by Spirit Halloween as a seasonal store, but Eyler said there was no conflict. It will take “a few weeks” for Aldi to close on the lease, he said.
But it might take longer than that. Nigro Companies plans to fight.
“We’re reviewing with counsel,” Powers said.
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When asked what the company’s options are — such as buying out the lease or breaking it — he said, “Anything’s possible.”
He emphasized that he has no problems with Aldi in general.
“Our main concern is we have a Price Rite (lessee) right across the street,” he said. “Aldi’s is a good operator, but it is in conflict with our Price Rite.”
Normally, he said, he does not rent adjacent lots to competitors. His goal is to have each lessee do well in their business.
Aldi currently runs a store at 176 Quaker Road, about 1.8 miles from the Toys R Us. Powers said he “expects” Aldi to move its store to the new location.
Aldi built a new store at 176 Quaker Road in 1997. Recently, the company has been building larger stores and additions to its existing stores.
The former Toys R Us used to be a Grand Union grocery store. It sits on 3.25 acres with an assessment of $1.86 million.