PHILADELPHIA, PA–Marcus & Millichap has sold three separate retail properties in southern New Jersey. The properties include a strip center in Sicklerville, an automotive parts store in Scotch Plains and a newly built convenience store in North Wildwood.
Brad Nathanson, a senior director in the firm’s Philadelphia office, represented the sellers in all three transactions, which commanded a combined sales price of $11.75 million.
“There has been tremendous activity in the Southern New Jersey retail investment sector,” Nathanson says. The market has been especially hot for triple net-leased properties, according to M & M. Nathanson said all three properties in South Jersey were net-leased, with high-quality tenants.
Also, location remains a key to attracting investment buyers, he noted. “Buyers are willing to stretch if they perceive an asset to be strategically located in relation to other retail properties,” Nathanson said. “They want to protect their cash-flow streams.”
The Sicklerville strip center, anchored by a Buffalo Wild Wings and an urgent care center, is located at 611 Cross Keys Road, which is at an interchange ramp for the Atlantic City Expressway. The site is one of five pads for a 127,000-square-foot destination lifestyle center, and traded for $378 per square foot.
The buyer was a New Jersey-based personal trust represented by M & M’s New Jersey office. Investment specialists Michael Lombardi, Brian Mucerino and Maz Radwan negotiated for the buyer in a deal with the Pennsylvania-based developer of the property.
In Scotch Plains, a net-leased Advance Auto Parts store at 445 Terrill Road traded for $482 per square foot. The property was rated at investment-grade by Standard & Poor’s. There are 10 years remaining on its lease.
The buyer, a Chicago-based real estate fund, was represented by Kevin Limbert, an investment specialist in M & M’s St. Louis office. John Przybyla of the Chicago Downtown office also provided representation. The seller was a Florida-based developer.
The newly-constructed Wawa Convenience Market at 330 West Spruce Ave. in North Wildwood closed at $1,059 per square foot. Wawa holds a 20-year ground lease on the property, specifying substantial tenant infrastructure investment as well as rental increases every five years. The property was built to replace an existing Wawa store built in 1972.
The store’s parent company ranks third in overall grocery sales for the Delaware Valley. The buyer, a Maryland-based 1031 exchange investor, was represented by Andrew Fallon of Calkain Cos. in Reston, Va.