Marcus & Millichap, a commercial real estate investment services firm with offices throughout the United States and Canada, recently arranged the sale of two Northern New Jersey shopping centers for over $29 million, according to Brian C. Hosey, regional manager of the firm’s New Jersey office. One of the properties is the Sprout Brook Shopping Center, a 21,875-square-foot multi-tenant retail center in Paramus that sold for over $680 per square foot, which is one of the highest prices per square foot paid for a multi-tenant center in New Jersey. The other multi-tenant asset is Franklin Commons, a 43,327-square-foot neighborhood shopping center and medical office building that brought $14,825,000, or $342 per square foot.
Alan Cafiero and Ben Sgambati, vice presidents investments in Marcus & Millichap’s New Jersey office, represented both sellers, and procured the Sprout Brook Shopping Center buyer. John Abuja, vice president investments in Marcus & Millichap’s Chicago Downtown office, secured the purchaser of Franklin Commons. Both assets were acquired as part of a 1031 exchange transaction.
“The strength of New York City’s job market has given stability to the Northern New Jersey retail market,” says Cafiero. “The vibrant economy, readily available low-cost financing and dropping vacancy are fueling investor demand.”
“For the past year, the market has been dominated by local investors and buyers from across the Hudson,” adds Sgambati. “In particular, exchange buyers from New York City remain active in the market. Time constraints associated with 1031 transactions are prompting aggressive bidding and many of these investors are accustomed to higher-priced markets, driving Northern New Jersey prices upward.”
Sprout Brook Shopping Center is located on 2.4 acres at 556 Route 17 North in Paramus. Route 17 has a traffic count of 150,000 cars per day. At the time of the sale, the center was fully occupied.
Built in 2007 on five acres, Franklin Commons is located at 454 Elizabeth Ave. in Franklin Township.Related Articles: