Marcus & Millichap: NJ Retail Update
New York multifamily investors—who know a good deal when they see one (or more)—are heading in droves to New Jersey. Marcus & Millichap investment directors Alan Cafiero and Ben Sgambati tell us that New Jersey retail is equally hot. The single-tenant properties getting attention: anything with 10 years or more remaining on the lease. The main reason: cap rates have really compressed, because interest rates remain low. Also, there is a big demand for quality properties in Jersey, with little supply; 1031 buyers from NYC are crossing the Hudson in record numbers. Alan and Ben recently sold a shopping center on Route 17 in Paramus, which is probably the hottest retail corridor in the state. The seller sold a property in NYC for a 2% cap rate, and bought the Paramus property in the fives (very aggressive for NJ). It was the highest price/SF multi-tenant retail sale in the history of the state, almost $700/SF and a little over $15M/21k SF. Alan and Ben offer about $85M worth of current listings, including a 15k SF shopping center, Village Green, in New Brunswick. They also sell industrial and office, including two industrial properties in Sicklerville, one in Cedar Grove, and an eight-building office portfolio in Albany, NY, for $16.5M. For more information on our Bisnow partner, click here.
