Grocery-Anchored Shopping Center for Sale in Monroe Township, New Jersey

Monday, April 15, 2019

Holliday Fenoglio Fowler, L.P. (HFF) is marketing a 135,090-square-foot, grocery-anchored retail center in Monroe Township, New Jersey. Currently 95% leased, Concordia Shopping Center includes a stable tenant roster that boasts an average tenure of more than 27 years. Stop & Shop occupies 48% of the center at 65,572 square feet and has been at the property since 1985, and the remaining tenant mix includes UPS, Hair Crafters, LIM Martial Arts, Dubin Orthodontics, Monroe Wine & Spirits, Monroe Eye Care, Mrs. Kumar’s Indian Cuisine, Verizon by Wells Fargo, Northfield Bank and BP, among others.

Concordia Shopping Center comprises 48,517 square feet of inline space with 8,456 square feet of pad sites and a two-story office building totaling 12,545 square feet all housed on 14.4 acres at 1600 Perrineville Road. The retail center for sale’s location in Monroe Township offers a limited amount of competition in the trade area, as the closest grocery store is more than five miles away, and the three-mile radius boasts an average household income of $106,052. Monroe Township is known as a popular location for retirees and a growing residential community.

According to the township’s planning and approval board, there are currently more than 6,000 houses that have been approved for future development. In order to support the residential growth, Monroe Township has expanded its school system, which now consists of six elementary schools, a middle school and a new high school constructed in 2015 that doubled in size. The National Council for Home Safety and Security named Monroe Township the 29th safest city in the United States.

Retail Property for Sale Investment Highlights

  • Stop & Shop-Anchored Asset with 30 Years of Tenure at Below Market Rent: Stop & Shop has been a tenant at the property since 1985 and generates reliable traffic flow to the center. Stop & Shop is one of the most dominant supermarket chains in New Jersey as well as the entire Northeast. The lease is guaranteed by Ahold, providing secure cash flow from a high-credit institution. With rent of $9.45 per square foot and low operating expenses, Concordia Shopping Center offers an affordable center that facilitates profitability for Stop & Shop and the rest of the tenant roster.
  • Highly Productive and Healthy Tenant Operations with Significant Tenure:  Concordia Shopping Center has maintained an occupancy rate of 94% or higher for the previous five years and has weighted average tenure of 27.4 years from its tenants. This is a clear demonstration of intrinsic real estate value and evidence of long-term, healthy tenant operation metrics, driven by low CAM charges of under $7.50 per square foot. Given where contractual rents are currently being achieved, and the corresponding tenure of the center’s tenants, the path to continued rental growth is apparent. Stop & Shop has a remaining lease term of 5.2 years with four five-year options remaining with $1 per square foot rent bumps, providing a stable base-line of contractual rent growth. The bank sites have demonstrated strong deposits with Wells Fargo posting outstanding deposits of $176.9 million.
  • High Barrier-to-Entry Location with Limited Competition:  Concordia Shopping Center’s strategic location makes it the only grocery store within a five-mile radius. The nearest grocery store is a ShopRite in East Windsor, which is more than seven miles away. Due to this, the property captures a wider-than-typical trade area with consumers traveling from surrounding municipalities. Located in the southern part of Middlesex County, Monroe Township is easily accessible to other parts of the state via Exit 8A of the New Jersey Turnpike running north to south and Route 33 running east to west.
  • Strategic Positioning and Proximity to the New Jersey Turnpike:  The shopping center benefits from being the closest retail center from the New Jersey Turnpike, providing immediate connectivity to the region and capturing consumers going to and from the highway. In addition, the center captures consumers from the immediate employment base of 1,000 businesses in a three-mile radius, which add more than 12,500 daytime employees.

To learn more about this retail listing for sale or other commercial real estate listing in the Mid-Atlantic, please contact Chris Munley in HFF’s Philadelphia office or Jose Cruz or Steve Simonelli in HFF's New Jersey office. To view this retail property for sale’s listing page, where you may download a CA agreement to receive more detailed materials, please click here.

To view HFF’s current real estate investment sales listings, please click here.

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