CBRE Arranges Sale of Three New Jersey Retail Assets

New Jersey retail properties which were recently sold in transactions brokered by CBRE, clockwise from top left, are: 1204 Route 130 N, Burlington; 727 Frelinghuysen Avenue, Newark; and 39 Kinderkamack Road, Westwood, NJ

WESTWOOD, BURLINGTON AND NEWARK, NJ— CBRE Group’s Tri-State Investment Properties team completed three separate retail property sales in New Jersey totaling more than $7 million. The team of Charles Berger and Mark Silverman of CBRE’s New Jersey office, and Elli Klapper of the firm’s Long Island City office arranged the transactions.

• The $5.5-million sale of 39 Kinderkamack Road in Westwood, from 39 Kinderkamack Properties to Roebling Investment Company;
• The $1.4-million sale of 1204 Route 130 N in Burlington, from Burlington Net Holdings to an unidentified buyer;
• The $650,000 sale of 727 Frelinghuysen Avenue in Newark from 727 Holdings LLC to 727 Newark Avenue LLC.

Recently built, 39 Kinderkamack Road is triple-net leased to Goodyear for a 15-year term. The 9,300-square-foot property sold at a sub six-percent cap rate – the lowest cap rate paid for a Goodyear in the previous 12 months. CBRE’s Investment Properties team collaborated with CBRE’s Samuel Bernhaut , vice president, in the transaction. “Our team was proud to represent one of our long-term clients in a near-record-breaking sale for a Goodyear triple-net-leased property,” says Elli Klapper . “This fabulous retail location on one of Bergen County’s main arteries, along with its brand new 15-year lease, made this a very attractive opportunity that resulted in a very timely transaction mutually benefitting both parties.” Double net leased to Dollar Tree , 1204 Route 130 N was sold in a 1031 Exchange at an aggressive cap rate. The recently-completed building is located within a highly active retail corridor in Burlington and has a new, 15-year lease in place with Dollar Tree upon its occupancy. “We were able to achieve an aggressive cap rate for the seller, a long-term client, and were able to procure a buyer for this asset in a timely manner,” says Berger . “Our team continues to dominate in this market, and has proven its ability to maximize value for our clients, resulting in repeat business from a number of clients, as well as satisfaction from first-time clients.” In the sale of 727 Frelinghuysen Avenue , the CBRE team represented a financial institution that was looking to dispose of the asset due to a number of challenges associated with the property. The 19,500-square-foot retail asset was 75-percent vacant at the time of the closing. “Although there were numerous hurdles to conquer in this transaction, including the property’s distressed location, a recent building fire and a high vacancy rate – we were able to secure a value-add investor without contingencies and close the deal in a timely manner, benefiting both the seller and buyer,” says Berger .