Union County shopping center sells to Adoni Group for $19.2M
ACNY Development settled for more than $1M below original ask for NJ property
A shopping center in Westfield, New Jersey, has traded hands for just over $1 million below its original $20.5 million ask.
The Adoni Group purchased the shopping center at 260 North Avenue East from ACNY Development for slightly above $19.2 million, Manhattan-based investment-sales brokerage Highcap Group announced. ACNY reduced the asking price several times during the pandemic.
The shopping center is located in the downtown area, situated on almost two acres of land. There are two retail buildings in the shopping center that total 31,250 square feet, as well as a large parking lot in the middle of the buildings.
One of the buildings is occupied by a Walgreens Pharmacy, which is locked into a long-term lease. The other houses five retail stores, including Super Cuts and Barre3. The shopping center was fully occupied at the time of the sale and all of the tenants continued to pay rent during the pandemic.
The sales price represents $615 per square foot. Highcap Group principal Josh Goldflam arranged the sale.
The Highcap Group pointed to Westfield’s location about 16 miles outside of Manhattan to describe the area as “one of the most affluent suburbs in northern New Jersey.” A list of the wealthiest towns in the state published in 2019 by NJ.com ranked Westfield as eighth, citing its median income of $159,923.
The Adoni Group is swooping into the shopping center at a time when the retail picture across the country is starting to appear sunnier. In August, overall retail purchases rose by 0.7 percent, easily outpacing the median estimate of an 0.7 percent drop during the month from economists surveyed by Bloomberg.
Amid the return of customers, landlords in recent months have received more owed rent from retailers. A monthly report from Datex Property Solutions showed national chains paid 95 percent of owed rent in August and non-national chains paid 89 percent of owed rent in the same month.