The properties include Dover Chase, a 110-unit townhome rental community in Toms River; Kumar Soni Plaza, a 40,000-square-foot, newly constructed retail center in Edison; and the 63,440-square-foot Sparta Business Campus in Sparta in Sussex County.
Company president Brian Silbert says that 70% of its portfolio is made up of retail properties, with the remainder being residential, office or industrial. He tells GlobeSt.com that multifamily is the best performing sector, although there are some pockets of softness.
"In New Jersey, we are seeing the multifamily market is still probably among the strongest sectors today," he says. "However, we are seeing some lessening of demand in corporate rentals, as the corporate base has eroded commensurate with the economy. But the private lessee market, not necessarily a corporate rental, is still strong, although we have seen variation from project to project. Some are offering a larger concession whereby a year ago they weren't offering any concession." Dover Chase is owned by AST Development, a builder of commercial and residential complexes in New Jersey.
At the same time, the retail market is getting battered by store closures and a slump in consumer sales, Silbert says. "We track the retail vacancy rates in the different corridors around the state and we've seen an increase, depending upon the area, anywhere from 2% to as high as 18% in the past 12 months," he says. Yet certain sectors, such as grocery stores, pharmacies and discount chains, are racking up stronger sales in comparison to specialty stores and luxury good outlets.
Kumar Soni Plaza, according to Silbert, is located in an area that has a large Indian population. "It's a unique property," he says. "It is owned by a family that is among the largest importers from third-world countries. We thought it would be an interesting addition to our portfolio."
In addition to its existing 63,440 square feet, Sparta Business Campus has another 16,000 square feet under construction currently. Silbert terms it is a "significant development" in that part of state that houses a number of medical and professional services businesses.
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