Grocery-anchored retail center in Northern New Jersey sells for $46M
JLL Capital Markets arranged the sale of the Wegmans-anchored shopping center and two newly developed restaurants in the Parsippany submarket.
MORRISTOWN, N.J., July 6, 2021 – JLL Capital Markets announced today that it has closed the $46 million sale of Wegmans Retail Center, a fully leased, 133,276-square-foot shopping center anchored by Wegmans Food Markets, along with two nearby restaurants in Hanover, New Jersey.
Wegmans Retail Center was completed in phases in 2017 and 2020. The fully occupied center is net leased to Wegmans Food Markets and Panera Bread. The privately owned grocer only has nine locations in New Jersey, the closest being in Bridgewater, which is 27 miles away. In addition to the Wegmans Retail Center, the sale also included two recently developed restaurants along Route 10 that are leased to Capital Grille and Seasons 52.
The center is located at 34 Sylan Rd. in Hanover within the Parsippany Retail submarket and approximately 25 miles west of New York City. Wegmans Retail Center is in a highly visible location along Interstate 287, which serves the northern half of New Jersey. Additionally, the properties serve a dense, affluent trade area that includes 62,060 residents within a three-mile radius earning an average annual household income of $163,632.
“We are pleased to have successfully transformed this property over the course of our ownership while generating value for our investors and delivering built-to-suit developments that meet the needs of our retail tenants and the Hanover and Morris County residents they serve,” said Ricardo Cardoso, Executive Vice President and Chief Investment Officer of Mack-Cali.
The JLL Capital Markets team representing the sellers was led by Senior Managing Directors Jose Cruz and Kevin O'Hearn, Managing Directors Michael Oliver and Steve Simonelli and Directors J.B. Bruno and Nicholas Stefans.
“We have seen a significant increase in retail interest overall but specifically in the longer-term credit leases. The buyer pool for retail in general has increased since the start of 2021,” Cruz added. “Demand for the Wegmans center was very strong from all buyer types, including institutional groups.”
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 sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 91,000 as of March 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Mack-Cali Realty Corporation
One of the country's leading real estate investment trusts (REITs), Mack-Cali Realty Corporation is an owner, manager and developer of premier office and multifamily properties in select waterfront and transit-oriented markets throughout New Jersey. Mack-Cali is headquartered in Jersey City, New Jersey, and is the visionary behind the city's flourishing waterfront, where the company is leading development, improvement, and place-making initiatives for Harborside, a master-planned destination comprising Class A office, luxury apartments, diverse retail and restaurants and public spaces.
A fully integrated and self-managed company, Mack-Cali has provided world-class management, leasing, and development services throughout New Jersey and the surrounding region for over two decades. By regularly investing in its properties and innovative lifestyle amenity packages, Mack-Cali creates environments that empower tenants and residents to reimagine the way they work and live.
For more information on Mack-Cali Realty Corporation and its properties, visit mack-cali.com.