The seller was Lexington Realty Trust. The New York City-based REIT focuses on single-tenant, net leased properties, and while Pathmark has an absolute net lease through the end of 2011, the building's occupancy is about to change. The 141-store Pathmark chain was acquired in late 2007 by A&P in a $1.4-billion deal, and with Pathmark now functioning as an A&P brand, its administrative operations are being consolidated at A&P's headquarters in Montvale, NJ.
"This disposition was well timed," says Jose Cruz of Cushman & Wakefield's Metropolitan Area Capital Markets Group, East Rutherford, who brokered the sale with team members Andrew Merin, David Bernhaut and Gary Gabriel. "Notably, Cofinance's involvement reflects stepped-up activity among the international investment in the tri-state area."
And officials of both Cofinance, as the new owner, and Pathmark, as the potential sublandlord, say they are "working closely together to begin to re-tenant 200 Milik St. immediately," according to a spokesman. "They are offering very creative lease structures at favorable rent and terms."
Those rents and terms were not immediately released. At the time of sale the building was listed on Lexington Realty Trust's website with a current rental rate of $11.80 per sf, and a renewal rate of $6.71 per sf.
The building at 200 Milik St. resides on a site of just more than 11 acres near the NJ Turnpike's Exit 12 and near I-287 and Routes 1 and 9 in a densely populated submarket bordering Middlesex and Union counties. Features include an on-site cafeteria.
For potential tenants, "it provides an economic and convenient alternative to nearby high-rent locations such as the MetroPark submarket," Merin says. "This asset remains well positioned."
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