"We were very pleased by the market reaction to the Essex Green offering," according to David Bernhaut, executive director of Cushman & Wakefield's Metropolitan Area Financial Services Group of East Rutherford, NJ. The firm represented the seller in the transaction, and secured the buyer for the property.
"We feel that reaction reflects the continued demand for quality retail properties in New Jersey," Bernhaut continues.
Located just off of I-280 in suburban Essex County, just west of Newark, the shopping complex is anchored by a Macy's department store and a ShopRite supermarket and currently shows a 99% occupancy rate. Other tenants include Sears Hardware, Petco and a nine-screen General Cinema.
The recent offering for the property drew more than two dozen bids from potential buyers, according to Bernhaut, who feels that the demand was the result of current market characteristics that show a dense population coupled with high barriers to entry for future retail competition.
"Crow Holdings and Investcorp opportunistically acquired the Essex Green property back in 1999, and they have successfully repositioned the center by relocating and expanding its grocery anchor," Bernhaut explains. "As a result of that, the partnership achieved a high return on its initial investment. At the same time, Principal has added to its portfolio an established retail center with both limited lease rollover and long-term appreciation potential."
The seller in the 1999 transaction was MONY Life Insurance, and the price tag was reported as $42 million.
Investcorp, based in New York City, has a portfolio with a current value in the neighborhood of $2.2 billion in selected urban and suburban markets in the US. Crow Holdings, meanwhile, is the Dallas-based investment arm of the Trammell Crow family.
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