Walmart Supercenter. Picture courtesy of Pegasus Investments Actual Property Advisory Inc.
A three way partnership between Stockbridge Capital Group and Cypress Equities has accomplished the $55 million sale of a 186,000-square-foot Walmart Supercenter in Linden, N.J., a suburb of New York Metropolis.
Public data present that Heritage Properties Inc., along with a Naples, Fla.-based funding companion, acquired the property at a 5 p.c capitalization price via a 1031 trade. State Farm Life Insurance coverage Co. supplied $28.5 million for the acquisition.
The transaction is a part of a large-scale break-up sale of eight retail parcels at Legacy Sq., a 47-acre, 328,957-square-foot energy heart anchored by Walmart, in line with ROI. The remaining parcels are anticipated to commerce for a mixed $86.5 million.
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Pegasus Investments Actual Property Advisory Inc. represented the client and labored to safe the long-term, fixed-rate non-recourse mortgage. SRS Nationwide Internet Lease Group brokered the deal on behalf of the sellers, whereas Mark Keener and Adam Block, companions at Gallagher Evelius & Jones LLP, served as their authorized counsel.
Half of a bigger energy heart
Legacy Sq. took form from 2019 via 2022, on the web site of a Second World Warfare-era Normal Motors manufacturing plant, additionally that includes a Vacation Inn lodge. Different tenants embody LA Health, Foot Locker, MatressFirm and One Greenback Zone, in addition to Starbucks, Panera Bread, Panda Specific and Taco Bell.
Positioned on 14 acres at 1050 W. Edgar Highway, Walmart anchors the property underneath a 20-year triple-net lease. The Supercenter had 3.7 million guests within the final 12 months, in line with Placer.ai, putting it on the seventh place throughout the model’s complete chain of three,835 U.S. shops.
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A inhabitants of 500,000 lives inside a 5-mile radius of Legacy Sq.. The retail heart is half a mile from Linden Airport, with direct trucking entry to warehousing and logistics amenities operated by Prologis and JFC Worldwide. Interstate 95 is one and a half miles away, offering the property with freeway entry and connections to all 5 boroughs of New York Metropolis. Downtown Manhattan is 24 miles northeast.
Large-box increase
The sale of 1050 W. Edgar Highway is emblematic of an elevated investor urge for food for well-located, big-box oriented retail facilities. Key motivators for brand spanking new investments have been properties the place tenants occupy house underneath some type of internet lease, in addition to the inclusion of ample eating, leisure and socialization elements.
Metro New York Metropolis’s market stays strong, with a emptiness price of 5.7 p.c on the finish of March, in line with a primary quarter 2023 report from Cushman & Wakefield. The worth was simply 10 foundation factors above the nationwide common.
