WOODBRIDGE, N.J. — Marcus & Millichap has brokered the $11 million sale of a gas station and convenience mart in the Northern New Jersey community of Woodbridge. The property totals 4,453 square feet and is net leased to QuickChek. Justin Natalizio and Eric Anton of Marcus & Millichap represented the seller and procured the buyer, both of which were limited liability companies that requested anonymity, in the transaction. John Horowitz of Marcus & Millichap assisted in closing the deal as the broker of record.
By Adam Connor, Colliers When the pandemic hit in 2020, most of the media jumped to write articles about the downfall of retail properties and how shoppers were going to get all their goods flown from drones from their Amazon overlords. The reality is that every day, normal people shop at grocery stores, go work out at the gym, and buy lunch or dinner somewhere. Now that 2020 is far behind us, the 2023 retail landscape in the Milwaukee region looks much different. Most of the retail space, including the mid-box and big-box vacancies, have been backfilled and, as a result, owners saw healthy rent growth in their assets. With the lack of construction over the past five to seven years, retailers are now competing for high quality space and paying a premium in rent to be located there. With only 134,000 square feet under construction and a 12-month absorption of 660,000 square feet, quality space is in high demand. Asking rents are up 7 percent to $14.80 since the second quarter of 2020 and vacancy is down to 5 percent. Development The Milwaukee area has some large development projects that are underway, including Fiserv moving its corporate headquarters back …
FLAGSTAFF, ARIZ. — Faris Lee Investments has arranged the $23.5 million sale of The Marketplace, a 268,000-square-foot shopping center in Flagstaff. Tenants at the property include Petco, Best Buy, World Market, Marshall’s, Old Navy and Bealls Outlet. Don MacLellan, Jeff Conover and Scott DeYoung of Faris Lee represented the seller, Macerich, in the all-cash transaction. A California-based 1031 investor purchased the property.
PLAINFIELD, ILL. — Marcus & Millichap has brokered the $2.3 million sale of a retail center in Plainfield, about 38 miles southwest of Chicago. NAPA Auto Parts signed a lease at the property in late 2022, taking a space formerly occupied by Mattress Firm. The center is now fully leased and occupied by four tenants. Mitchell Kiven of Marcus & Millichap represented the seller, a private real estate fund. The transaction closed at 96 percent of the asking price.
NEW ROCHELLE, N.Y. — LA Fitness has opened a 36,000-square-foot gym at a freestanding building located at 75 Nardozzi Place in New Rochelle. The fitness operator will occupy most of the two-story building’s top floor. The gym houses a lap pool, whirlpool spa, locker rooms with saunas, group exercise studio and a multi-tiered indoor cycling studio. A partnership between Simone Development and G&S Investors owns the building.
By Jason Baker, principal at Baker Katz When a national retail or restaurant brand acquires another prominent national name, the move might initially seem to make a great deal of sense — especially when there are clear similarities between the two brands. Ultimately, however, what makes these high-profile transactions successful may turn out to be less about brand synergy and more about market dynamics and commercial real estate leverage. Accepting that premise in turn raises some interesting questions about the role that these types of acquisitions and brand conversions might play in an increasing competitive commercial real estate landscape. Those questions are especially relevant in places like Texas, where retailers looking to expand or move into new markets may view the acquisition and conversion of struggling retail brands as a viable strategy. From fitness concepts to coffee chains, there may be opportunities retailers can leverage to find quality retail spaces in otherwise occupied marketplaces. Some of these acquisitions have already taken place. However, questions remain about how much of a role these conversions may play in Texas markets. The phenomenon is hardly a new one, but it does seem like a noteworthy trend for industry analysts, retailers and brokers alike …
LEWISVILLE, TEXAS — Axiom Capital Corp., a New York-based commercial finance and advisory firm, has arranged a $6.4 million acquisition loan for a 48,427-square-foot retail property located in the northern Dallas suburb of Lewisville. The building, which is occupied by supermarket chain Fiesta Mart, sits on 3.2 acres within a 106,000-square-foot shopping center that was not included in the transaction. The borrower and direct lender were not disclosed.
CHICAGO — SVN Chicago Commercial has brokered the sale-leaseback of a 9,500-square-foot building located on North Clark Street in Chicago’s Andersonville neighborhood for an undisclosed price. The property features roughly 6,000 square feet of ground-floor commercial space that is occupied by Reza’s Restaurant. The restaurant plans to downsize its space, enabling future development opportunities for the buyer, a partnership between Chicago-based GW Properties and Howard Natinsky. Reza’s Restaurant will continue to lease back space from the new owner. Wayne Caplan of SVN Chicago Commercial brokered the sale.
The future of retail has been questioned many times in the last few years, but the sector continues to evolve and overcome any obstacles that arise. Today’s consumers want a gathering place to dine, drink and be entertained, especially after the isolation and stay-at-home mandates they endured throughout the pandemic. With that in mind, owners are redeveloping many underutilized retail properties into new concepts that invigorate the towns in which they reside. Take ROECO, for example, a project that aims to transform a former Sears Roebuck location in Lansing, Michigan, into a retail and entertainment destination. Owner Gillespie Group purchased the property about 10 years ago when Sears was still operating. Sears opened the property in 1953 and vacated it about four years ago. Most recently, a local hospital utilized the site for COVID-19 testing. Pat Gillespie, CEO of Lansing-based Gillespie Group, says his firm is actively marketing the project and has about seven to eight letters of intent with retailers. Gillespie’s main focus is retail and entertainment, but the firm is having conversations about hospitality or housing for the far northeast corner of the 14-acre property. Gillespie says the design of ROECO will have a retro feel to play …
Company NewsDevelopmentGeorgiaIndustrialNebraskaNew YorkRetailSouth CarolinaSoutheastTennesseeTexasTop Stories
Dollar General Grows Supply Chain Network by 3.2 MSF With Five Distribution Facilities
GOODLETTSVILLE, TENN. — Dollar General Corp. (NYSE: DG) has announced recent expansions in its supply chain network that will grow the discount retailer’s distribution footprint by more than 3.2 million square feet. The Goodlettsville, Tenn.-based company has recently opened three new facilities and announced expansions of two existing campuses that will support Dollar General’s traditional goods, as well as its DG Fresh line of groceries. “The recent additions to our supply chain network aim to provide greater efficiencies, create additional jobs and drive positive economic impact,” says Tony Zuazo, executive vice president of Dollar General’s global supply chain. “We’re excited to continue growing our distribution center network to further support store growth and to better serve our customers and local communities.” Dollar General recently opened an 800,000-square-foot distribution center in Blair, Neb., that is expected to create approximately 400 new jobs at full capacity. The $140 million development is the company’s first ground-up dual facility, meaning it features both traditional distribution space and cold storage. Dollar General plans to host a formal opening ceremony for the facility this summer. The company recently increased distribution center storage capacity by more than 2 million square feet by opening two new permanent regional facilities …