Sale of New Jersey shopping center in prime retail corridor closes

MORRISTOWN, Feb. 22, 2024 – JLL Capital Markets announced today that it has closed the sale of Heritage Square, a recently developed 87,318-square-foot community retail center located along Route 22 in Watchung, New Jersey.

JLL represented the seller and also procured the buyer, Urban Edge Properties.

The property, developed in 2019, is home to investment grade credit tenants such as HomeSense and Sierra Trading Post, CityMD and Starbucks, as well as strong national tenants, such as Chick-fil-A, Ulta Beauty, Miller’s Ale House and Davids Bridal. Fifty percent of the asset’s income is generated from credit tenants, and 86% is from national retailers. With a WALT of nearly eight years and no rollover until 2029, the asset provides a durable long-term cash flow stream underscored by a complementary tenant mix.

Situated at 1640 Route 22, the property is located within the highly desirable Route 22 retail corridor, which includes over 18.9 million square feet of retail inventory. Route 22 boasts an impressive traffic count of approximately 63,000 AADT and provides connectivity to Interstate 78, Route 28, Garden State Parkway and Interstate 287. Positioned in Watchung within the wealthy Somerset County, the center benefits from an average household income of over $180,000 within a three-mile radius and affluent nearby towns, such as Westfield, Berkeley Heights, New Providence and Summit. Within a five-mile radius of the property, consumer spending totals approximately $3.6 billon.

The JLL Retail Capital Markets team that represented the seller was led by Jose Cruz, J.B. Bruno, Kevin O’Hearn, and Austin Pierce.

“Despite a challenging interest rate environment, both buyer and seller worked together to ensure a successful transaction,” stated Cruz. “Retail opportunities have continued to attract institutional capital to the suburban New York area.”

“We are excited to add Heritage Square to our growing portfolio,” said Jeff Mooallem, Chief Operating Officer at Urban Edge Properties.  “We have worked on several transactions with Jose and the JLL Capital Markets team this past year and they always deliver accurate information, clear communication and the highest level of integrity to the process.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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