97,000-SF Shopping Center Sells for $11M

LAKEWOOD, NJ-Fair Oak LLC has sold its 97,522-sf Seagull Square Shopping Plaza to a local group in a transaction arranged for the seller by GMH Capital Partners of Newtown Square, PA. The identity of the buyer and the sale price were not disclosed, however, documents filed with the Ocean County clerk’s office identify the buyer as the locally based Ocean Realty 101 LLC, and the sale price as $10.7 million. The latter computes to just under $110 per sf.

The new owner plans a major repositioning of the shopping center, according to Bill Tourtellotte of GMH Capital Partners, who with the firm’s Shawn Lubic arranged the transaction for Fair Oak. But before that can happen, legal action against Fair Oak and its management agent for the center, Metro Commercial Management Services, has to be resolved.

In that suit, filed in Superior Court earlier this year against Fair Oak LLC and Metro Commercial, a group of current and former tenants claim they were misled about the anchor tenancy of the complex, specifically whether or not it would include a supermarket. The plaintiffs also now say they want a determination of who will be held responsible if judgment is rendering in their favor, given the change in ownership. Complicating matters is the fact that one of the existing anchors, a Walgreen’s drugstore, is planning to move to a larger nearby location. The various parties would not comment, citing the pending legal action, or could not be reached for comment.

The legal action aside, “this property has excellent potential for value enhancement,” says Bill Tourtellotte, a vice president with GMH Capital Partners’ investment sales division. “This buyer is a great fit for the efficient and effective repositioning of this asset.”They have an impressive plan and will begin implementing their strategy immediately,” Tourtellotte continues. However, the specifics of the plan have not been released by Ocean Realty 101, a group headed by CEO Stephen Lieber.