New Jersey Retail Cap Rates / Price Per Square Foot What Is Trading - - PowerPoint PPT Presentation

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Feb 20, 2024 233 likes •483 views

Specialization Expertise Results New Jersey Retail Cap Rates / Price Per Square Foot What Is Trading / Who Is Buying What Is In Demand Challenges Ahead www.MarcusMillichap.com Specialization Expertise

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www.MarcusMillichap.com

Specialization • Expertise • Results

New Jersey Retail

➢ Cap Rates / Price Per Square Foot ➢ What Is Trading / Who Is Buying ➢ What Is In Demand ➢ Challenges Ahead

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www.MarcusMillichap.com

Specialization • Expertise • Results Specialization • Expertise • Results

Cap Rates & Price Per Square Foot Cap Rates & Price Per Square Foot

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Specialization • Expertise • Results Specialization • Expertise • Results

What Is Trading?

➢ Types of Products ➢ Investment Range ➢ Specific Markets

Who is Buying?

➢ Types of Buyers

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Specialization • Expertise • Results Specialization • Expertise • Results

Challenges Ahead?

➢ Amazon ➢ New Construction ➢ Interest Rates

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Specialization • Expertise • Results

Deal Stories

New Jersey Retail

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Colonia Strip Center

228-238 Inman Avenue, Colonia, NJ 07067

14 Offers

Price: $1,350,000 Cap Rate: 6.39%

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Specialization • Expertise • Results

The Shoppes @ Pierce Street

(Under-Contract)

149-151 Pierce Street, Somerset, NJ 08873

11 Offers

Price: $12,200,000 Cap Rate: 7.49%

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Specialization • Expertise • Results

St. George Plaza

Just Listed

1114 St. Georges Avenue, Avenel, NJ 07001

10 Offers

Price: $2,700,000 Cap Rate: 6.71%

2 Weeks

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Specialization • Expertise • Results Specialization • Expertise • Results

➢ Cap Rates / Types Of Deals ➢ Why Net Lease? ➢ Who Is Buying? ➢ How We Value Net Lease Assets

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Drug Auto Fast Food Dollar Stores Day Care Grocery Bank Medical Gas

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Walgreen’s - Baa2 CVS – Baa1 Cap Rates 5.0% - 5.5% 5.0% - 5.5%

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Cap Rates Albertsons – B1 5.0% - 5.5% Aldi – B1 5.0% - 5.5% Stop & Shop – Baa2 5.5% - 6.0%

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Cap Rates McDonald’s – Baa1 4.0% - 5.0% Starbucks – A2 4.5% - 5.0% Burger King – B3 5.0% - 6.5% Chick-fil-A – N/A 4.25% - 4.75%

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Cap Rates AutoZone - Baa2 5.0% - 5.5% O’Reilly – Baa1 5.5% - 6.0% Advanced Auto Parts -Baa2 5.5% - 6.0%

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KinderCare - Baa2 Kiddie Academy – B1

Cap Rates 7.0% - 8.0% 7.0% - 8.0%

The Learning Experience – B2 6.75% -7.5%

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Cap Rates Dollar Tree - Baa2 6.0% - 6.75% Dollar General – Baa2 6.0% - 6.75% Family Dollar – Baa2 6.0% - 6.75%

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Cap Rates Chase – A3 4.25% - 4.75% Wells Fargo – A2 5% - 5.5% Bank of America – A3 4.5% - 5.5%

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Fresenius – Ba1 DaVita – Ba3 Cap Rates 5.5% - 6.5% 5.35% - 6.0%

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Cap Rates Royal Farms – Ba1 5.0% - 5.5% Wawa – Ba3 4.5.% - 5.25% QuickChek – B2 4.75% - 5.25%

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Specialization • Expertise • Results Specialization • Expertise • Results

Why Net Lease? ➢ Ease Of Management ➢ Credit Rating ➢ Consistent/Dependable Cash Flow ➢ Cap Rate Arbitrage

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Who Is Buying? ➢ National Owners ➢ Professional Buyers ➢ Exchange Capital

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How Are They Valued? ➢ Location ➢ Sales ➢ Credit ➢ Lease Term

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Michael Lombardi First Vice President Investments Director: National Retail Group Office: Park 80 West 250 Pehle Avenue, Suite 501 Saddle Brook, NJ 07663 Tele: (201) 742-6125 E-Mail: Michael.Lombardi@marcusmillichap.com