Catellus in $37M Walmart Ground Lease Sale in Teterboro, NJ

TETERBORO, NJ—A single-tenant ground lease for the Walmart Supercenter at Teterboro Landing in Teterboro, NJ has traded for $37.48 million.

Ed Hanley, CCIM, president of Corona del Mar, CA-based Hanley Investment Group, represented the seller, Catellus Development Corporation of Oakland, CA.

The buyer, according to Real Capital Analytics, a proprietary research database that tracks commercial real estate transactions, was Brian E. Bergersen, whom Hanley described as a 1031 exchange private investor from Dallas, TX. Bergersen was self-represented in the transaction.

“This sale represented a rare opportunity to purchase a new single-tenant, triple-net Walmart with stable income stream with increases,” says Hanley. ”It’s a very sought-after new development in a fantastic location,” he told GlobeSt.com in a phone interview.

Hanley says his firm has had a long relationship with Catellus.

“They’re a professional developer, and oftentimes, they do sell their projects, that’s part of their business plan, depending on the asset,” he says.

Built in 2015, the single-tenant 159,542-square-foot building is located on 14.39 acres at 1 Teterboro Landing Drive in Teterboro, NJ. Teterboro Landing shopping center is 100 percent occupied with the “best in class” tenants. In addition to Walmart, tenants include Costco, Chipotle Mexican Grill, BJ’s Restaurant & Brewhouse, Blaze Pizza, Chick-fil-A, CityMD Urgent Care, European Wax Center, GNC, Habit Burger Grill, KicksUSA, Panera, Petco, Texas Roadhouse, The Halal Guys, and T-Mobile.

The property is adjacent to Route 17 (81,000 cars per day) and Route 46 (43,000 cars per day) and just south of Interstate 80 (163,000 cars per day) and west of the New Jersey Turnpike (Interstate 95), and is strategically located within the busiest of northern New Jersey’s major transportation corridors.

Walmart benefits from the excellent visibility and access with easy access from both Route 46 at Industrial Avenue and from Route 17 at Green Street with seven entrances into the shopping center.

“Walmart has premium visibility along Route 46 with its building as well six highly visible pylon signs,” Hanley says.

“This is an extremely dense market with no available land and rapidly rising land costs which create extremely high barriers to entry for future development,” Hanley says. “Teterboro Landing took eight years of approvals, planning and development, including $4 million of off-site Department of Transportation improvements. This is definitely a trophy property and we expect high-quality properties like this will continue to attract investors who are willing to pay top dollar.”