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

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


  1. 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

  2. Specialization • Expertise • Results Specialization • Expertise • Results Cap Rates Cap Rates & Price Per Square Foot & Price Per Square Foot www.MarcusMillichap.com

  3. Specialization • Expertise • Results Specialization • Expertise • Results What Is Trading? Who is Buying? Types of Products ➢ ➢ Types of Buyers ➢ Investment Range ➢ Specific Markets www.MarcusMillichap.com

  4. Specialization • Expertise • Results Specialization • Expertise • Results Challenges Ahead? ➢ Amazon ➢ New Construction ➢ Interest Rates www.MarcusMillichap.com

  5. Specialization • Expertise • Results New Jersey Retail Deal Stories www.MarcusMillichap.com

  6. Specialization • Expertise • Results Colonia Strip Center 228-238 Inman Avenue, Colonia, NJ 07067 • 14 Offers Price: $1,350,000 Cap Rate: 6.39% www.MarcusMillichap.com

  7. 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% www.MarcusMillichap.com

  8. Specialization • Expertise • Results St. George Plaza Just Listed 1114 St. Georges Avenue, Avenel, NJ 07001 • 2 Weeks • 10 Offers Price: $2,700,000 Cap Rate: 6.71% www.MarcusMillichap.com

  9. Specialization • Expertise • Results Specialization • Expertise • Results ➢ Cap Rates / Types Of Deals ➢ Why Net Lease? ➢ Who Is Buying? ➢ How We Value Net Lease Assets www.MarcusMillichap.com

  10. Specialization • Expertise • Results Specialization • Expertise • Results Day Care Drug Auto Dollar Stores Grocery Fast Food Medical Gas Bank www.MarcusMillichap.com

  11. Specialization • Expertise • Results Specialization • Expertise • Results Cap Rates 5.0% - 5.5% Walgreen’s - Baa2 CVS – Baa1 5.0% - 5.5% www.MarcusMillichap.com

  12. Specialization • Expertise • Results Specialization • Expertise • Results Cap Rates 5.0% - 5.5% Albertsons – B1 Aldi – B1 5.0% - 5.5% Stop & Shop – Baa2 5.5% - 6.0% www.MarcusMillichap.com

  13. Specialization • Expertise • Results Specialization • Expertise • Results Cap Rates 4.0% - 5.0% McDonald’s – Baa1 Starbucks – A2 4.5% - 5.0% Burger King – B3 5.0% - 6.5% Chick-fil-A – N/A 4.25% - 4.75% www.MarcusMillichap.com

  14. Specialization • Expertise • Results Specialization • Expertise • Results Cap Rates AutoZone - Baa2 5.0% - 5.5% O’Reilly – Baa1 5.5% - 6.0% Advanced Auto Parts -Baa2 5.5% - 6.0% www.MarcusMillichap.com

  15. Specialization • Expertise • Results Specialization • Expertise • Results Cap Rates 7.0% - 8.0% KinderCare - Baa2 7.0% - 8.0% Kiddie Academy – B1 The Learning Experience – B2 6.75% -7.5% www.MarcusMillichap.com

  16. Specialization • Expertise • Results Specialization • Expertise • Results Cap Rates Dollar Tree - Baa2 6.0% - 6.75% Dollar General – Baa2 6.0% - 6.75% Family Dollar – Baa2 6.0% - 6.75% www.MarcusMillichap.com

  17. Specialization • Expertise • Results Specialization • Expertise • Results Cap Rates Chase – A3 4.25% - 4.75% Wells Fargo – A2 5% - 5.5% Bank of America – A3 4.5% - 5.5% www.MarcusMillichap.com

  18. Specialization • Expertise • Results Specialization • Expertise • Results Cap Rates Fresenius – Ba1 5.5% - 6.5% 5.35% - 6.0% DaVita – Ba3 www.MarcusMillichap.com

  19. Specialization • Expertise • Results Specialization • Expertise • Results Cap Rates Royal Farms – Ba1 5.0% - 5.5% Wawa – Ba3 4.5.% - 5.25% QuickChek – B2 4.75% - 5.25% www.MarcusMillichap.com

  20. Specialization • Expertise • Results Specialization • Expertise • Results Why Net Lease? ➢ Ease Of Management ➢ Credit Rating ➢ Consistent/Dependable Cash Flow ➢ Cap Rate Arbitrage www.MarcusMillichap.com

  21. Specialization • Expertise • Results Specialization • Expertise • Results Who Is Buying? ➢ National Owners ➢ Professional Buyers ➢ Exchange Capital www.MarcusMillichap.com

  22. Specialization • Expertise • Results Specialization • Expertise • Results How Are They Valued? ➢ Location ➢ Sales ➢ Credit ➢ Lease Term www.MarcusMillichap.com

  23. Specialization • Expertise • Results Specialization • Expertise • Results 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 www.MarcusMillichap.com

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