2 — September 2026 — M id A tlantic Real Estate Journal
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M id A tlantic Real Estate Journal
M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman VP, Conference Producer .............................Lea Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnist ........ Ryan C. Duffy & Dipa Rapole, Stark & Stark Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 38, Issue 9 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage
Ryan C. Duffy
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Dipa Rapole
Drawing the Line: Crafting Clear, Enforceable Exclusives in Commercial Leases I n KRG Bayonne Urban Renewal, LLC v. Wal- Mart Stores East, LP, the Superior Court of New Jersey, Appellate Division, reminded commercial landlords and tenants that when it comes to restrictive covenants, “plain meaning” reigns supreme. Background: In October of 2009, Walmart executed a lease for approxi- mately 90,000 s/f at Cameron Bayonne Urban Renewal’s Bayonne Crossing Shopping Center. Included in the lease was an Exclusive Covenant that prohibited the landlord from leasing other space in
the center to any tenant whose principal use was a “supermar- ket (selling food in more than 10,000 s/f of Floor Area)…” which, on first reading, seems pretty clear. Over a decade later, Walmart’s new landlord, KRG Bayonne Urban Renewal, LLC, who acquired ownership of Walmart’s previous land- lord, leased roughly 19,591 s/f of space in the shopping center to a new supermarket, Aldi. To circumvent the Walmart exclusive covenant, the Aldi lease attempted to partition the space, arguing the “total food sales area” was only 9,999 s/f (one foot less than what was prohibited), with the rest of the space, which was comprised of the center aisle with all displays on both sides
facing it, designated as “Aldi Finds non-food” area. Disposition: After Walmart objected to the Aldi lease, and months before same was amended, KRG filed a Chancery Divi - sion complaint seeking de- claratory judgment that the exclusivity provision’s restric- tion on other tenants was “to be measured based on the square footage of the area in which food products are made available for purchase.” While the trial court agreed with KRG, the Appellate Division reversed, holding that “Floor Area” as defined in the lease and governing declaration for the shopping center includes storerooms and other areas of the premises not accessible continued on page 4
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