LEDGEWOOD, NJ— A joint venture of Advance Realty, DeBartolo Development and Invesco Real Estate has acquired Ledgewood Mall, a 518,000-square-foot Morris County retail property, from the holder of the property's mezzanine loan for a price in the high-$20 million range.
Cushman & Wakefield's Metropolitan Area Capital Markets Group, East Rutherford, NJ, represented the seller and procured the buyer in the transaction. Gary Gabriel, Andrew Merin, David Bernhaut, Brian Whitmer and Nick Karali, led the team handling the transaction.
Situated on 46.5 acres at 461 Route 10, Ledgewood Mall is anchored by Wal-Mart, Ashley Furniture, Marshalls, Sports Authority and Barnes & Noble. Combined with adjacent Roxbury Mall, the two centers total more than 1 million square feet, representing the dominant retail destination along the Route 10 corridor.
"Ledgewood Mall was built in 1974 and has been institutionally owned for the majority of its history,” says Gabriel. “While the mall has been able to maintain an impressive line-up of nationally recognized tenants, the interior mall space is largely vacant due to a lack of strategic direction and modernization. It is a prime redevelopment or 'de-mall' candidate, with five anchor and junior anchor boxes that could provide cash flow throughout a repositioning project.”
Karali says the new ownership will focus on determining the best direction for Ledgewood Mall while enhancing its tenant mix. The property's location—just two miles south of I-80, immediately east of the Route 46 intersection—offers outstanding accessibility. Strong regional demographics include average household incomes of $126,000 and $115,000 within one and three miles of the property, respectively.
The Ledgewood Mall trade reflects an overall increase in retail real estate investment activity in the Northern New Jersey market.
“This year has seen volume pick up as cap rates continue to compress,” says Karali. “We are tracking over $1.4 billion in sales, either closed or under contract, for properties over $10 million. This compares to $540 million in retail property trades in the market during 2014.”
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
