Significant Sale of Grocery-Anchored Power Center Announced
Major Sale in Grocery-Anchored Power Centers
Marcus & Millichap's Institutional Property Advisors, a prominent division specializing in commercial real estate transactions, recently announced a notable sale of Hamilton Marketplace. Nestled in the heart of New Jersey, this grocery-anchored regional power center was sold for over $100 million. This transaction stands out as the largest single-asset open-air shopping center deal in the region since 2017, highlighting the ongoing vibrancy of the retail sector.
Market Trends and Insights
Brad Nathanson, the executive director at IPA, shared insights on the transaction. "This property was listed on the open market for the first time since its inception, attracting a diverse pool of both private and institutional investors. The interest was notably significant, resembling activity levels that were previously witnessed before the pandemic," he stated. With over 128 acres along a prominent highway, the property held considerable allure for many buyers, particularly large private family offices impressed by its strategic positioning.
Demand for High-Quality Power Centers
Nathanson emphasized that premium power centers have proven resilient, showing substantial rent appreciation since 2021. The combination of limited new constructions and significant costs associated with tenant re-lease has created a favorable environment for vintage power centers with established tenant bases, making them highly sought after by investors.
The Center’s Notable Features
Hamilton Marketplace is among the top 1% of most-visited shopping destinations nationwide and is particularly regarded as one of the most frequented open-air shopping centers in New Jersey. Its reputation is bolstered by a strong record of anchor retention and impressive sales performance from top retailers. Colussi, a senior director at IPA, noted that out of the original 17 anchors, 13 remain in place, and recently, nine anchor tenants exercised their contractual rights.
Tenant Mix and Performance
The property features a diverse array of stores, anchored by a significant 65,155-square-foot ShopRite Supermarket. Other notable tenants include Kohl’s, Ross, Staples, Barnes & Noble, Michaels, Old Navy, Ulta, Burlington, and PetSmart, which collectively contribute to the center's robust performance. Nathanson remarked, "The retail fundamentals are stronger than ever, and institutional investors, Real Estate Investment Trusts (REITs), and various new private entities are eager to enter or expand their holdings in large format shopping centers."
Historical Context of Retail Transactions
This latest transaction follows the trend of over $100 million retail transactions in New Jersey, with the last significant sale occurring in 2017 at Centerton Square in Mt. Laurel, where Nathanson and Colussi also represented the seller and secured the buyer. The current sale underscores the dynamic nature of the retail market and the renewed interest from investors.
About Institutional Property Advisors (IPA)
Institutional Property Advisors is a dedicated division of Marcus & Millichap, a leading firm in commercial real estate services throughout North America. IPA combines deep expertise in real estate investment with capital markets knowledge and advanced technology. This allows them to deliver tailored solutions for the acquisition, disposition, and financing of institutional-grade properties and portfolios.
About Marcus & Millichap, Inc.
Marcus & Millichap is recognized as a premier brokerage firm specializing in commercial real estate investment sales, financing, research, and advisory services. With over 1,783 professionals across more than 80 offices as of the end of 2023, the company provides comprehensive brokerage and financing services. The firm recorded 7,546 transactions within the year, amounting to an impressive sales volume of around $43.6 billion.
Frequently Asked Questions
What is Hamilton Marketplace?
Hamilton Marketplace is a grocery-anchored regional power center located in New Jersey, recently sold for over $100 million.
Who facilitated the sale of Hamilton Marketplace?
The sale was brokered by Marcus & Millichap’s Institutional Property Advisors, represented by Brad Nathanson and JP Colussi.
What makes Hamilton Marketplace special?
This center is one of the top 1% of most-visited shopping centers in the nation, known for its strong tenant base and sales performance.
What does the sale indicate about the retail market?
The sale reflects a resurgence of investor interest in premium retail properties, particularly vintage power centers, amid strong retail fundamentals.
What types of tenants are in Hamilton Marketplace?
The center features well-known retailers including ShopRite, Kohl’s, Ross, and more, contributing to its successful operations.
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