WESTFIELD, NJ-Sometimes even the no-brainer deals pose challenges. The Kislak Co. has represented both the buyer and the seller of an 11,400-square-foot mixed-use retail and office building at 240 North Avenue West here for $4.3 million. Both parties are private clients of the company.
Newly constructed in 2005, the property includes a three-story brick elevator building with first and second floor retail space and office space on the third floor. The property is 100% leased to Citibank branch, Salon Visage, and two office tenants in triple net leases, and is located near the train station in one of the state’s most affluent markets.
“The seller had another property he wanted to purchase, and the buyer was looking for a conservative investment,” says Kislak senior VP Joni Sweetwood, who represented both parties in the transaction.
But the high per-square-foot purchase price of $377 and tight financing made the transaction more challenging than one might have expected. The owner turned to Kislak after another broker had not succeeded in selling the property.
“The high dollars per square foot gets people nervous,” Sweetwood notes. A 2,000-square-foot space in Westfield sold for $250 per square foot to $300 per square foot in February 2011, according to LoopNet.
Citibank’s lease comes up for renewal in five years, adding to the anxiety, though Sweetwood noted that she fully expects a renewal or swift re-lease given the location.
And this is a newly rebuilt trophy property in one of the most solid retail markets in the state, says Kislak COO Jason Pucci. “People hear bad things about retail real estate,” Pucci says. “But in Westfield, it’s a diamond.”
The downtown has more than 200 retail and 400 commercial establishments including Lord & Taylor, a mix of mix of independent and national stores and restaurants, and office space. Over one-third of the retailers and restaurants have existed for 25 years or more, the company says.
The owner, who had worked with Sweetwood in the past, turned to her again. Ultimately, Sweetwood found a buyer, with financing provided by Oritani Savings Bank. And the deal could trigger more activity. “This could shake something loose,” Pucci says. “You never know."
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