North Bergen Retail Center Flips for $27M

NORTH BERGEN, NJ—Tonnelle Plaza, a 350,000-square-foot retail center with a warehouse component in the New York metropolitan area suburb of North Bergen, NJ, has changed has for a reported $27 million.

Holliday Fenoglio Fowler marketed the property on behalf of the seller, 8101 Tonnelle Avenue. An affiliate of New York-based Northeast Capital Group and BHN Associates purchased the asset free and clear of existing debt.

"Tonnelle Plaza is located in one of Northern New Jersey's most densely-populated neighborhoods," says José Cruz, HFF senior managing director. "The property benefits from a wide array of shoppers and is a great addition to the new partnership's portfolio."

Cruz led the HFF investment sales team representing the seller with managing director Kevin O'Hearn and associate directors Michael Oliver and Steve Simonelli, withsupport from senior managing director Andrew Scandalios.

Tonnelle Plaza was renovated in 2008 after being developed by the seller in 1990.  Anchored by ALDI and Burlington Coat Factory, the 95.7-percent-leased center is also home to Planet Fitness, Chuck E. Cheese, JP Morgan Chase Bank, Sally Beauty Supply, Subway, McDonalds, All Pet Distributors and Good Chinese Kitchen.  In addition to the 155,500 square feet of retail space, the two-level center has 196,000 square feet of warehouse space fully leased to three tenants.  Situated on 12.6 acres at 8101 Tonnelle Avenue (Routes 1 and 9), Tonnelle Plaza is less than 10 miles from Midtown Manhattan and in the Hudson waterfront retail submarket.  North Bergen is a designated Urban Enterprise Zone with nearby national retailers, including Lowe's Home Improvement, The Home Depot, Target, Walmart and BJ's Wholesale Club.

"We appreciated the opportunity to close yet another deal with the New Jersey HFF team," says Northeast Capital Group CEO Joel Kiss.  "This property was very appealing due to its stellar real estate along with the unique diversification benefit of having retail and industrial uses.  Similarly appealing was the strong value-add opportunities here, especially with the 10 percent retail vacancy and below market rents."

Northeast Capital Group is a private equity investment group based in New York's Rockland County.  NECG looks to invest in stable and value-add commercial and residential real estate with an emphasis on well-located anchored shopping centers in primary and secondary markets around the country.