7-Eleven is Closing Store at 403 Grand St.

IMG_1413-2

You may have noticed the “75% off” sale signs pasted all over the 7-Eleven store at 403 Grand St. There’s a reason for that, of course. The chain store’s landlord, the Seward Park Cooperative, confirmed last night that 7-Eleven is closing this location at the end of August.

Back in 2013, there was a huge controversy over the Grand Street lease. While the co-op was looking for a stable commercial tenant, many local residents were strongly opposed to a national chain coming to this stretch of Grand Street.

Doron Stember, a board member at Seward Park, tells us management received a letter from 7-Eleven’s corporate offices advising the co-op that the company would be vacating the space with several years remaining on its lease. There are significant penalties in the lease for breaking the agreement, meaning 7-Eleven will be paying rent at 403 Grand for many months. Stember said 7-Eleven did not specify why it’s walking away from the Lower East Side store.

According to a memo sent to Seward Park residents Tuesday morning, 7-Eleven had a “corporate guarantee” for the first five years (that amounted to almost $1 million in rent). The early termination clause requires the company to pay $174,000 for terminating the lease (that’s equivalent to 13 months of rent).

Meanwhile, more chain stores are set to open directly across the street. Target opens a new store this week as part of the Essex Crossing project, and Trader Joe’s will be following suit in the same building in the early fall.