Dealmaker: Northmarq Closes $13M in Retail Sales

Chick-Fil-A restaurant, Huntington, N.Y.

Northmarq’s Atlanta office closed $13.3 million in retail property sales in New York and Georgia.

In Huntington, N.Y., Northmarq Senior Vice President Maggie Holmes and Managing Director Mike Sladich sold a freestanding retail property on East Jericho Turnpike. A New York-based private family office in a 1031 exchange acquired the asset for $7.6 million reflecting a 3.68 percent cap rate. A Chick-Fil-A restaurant occupies the 5,000-square-foot asset. Holmes represented the seller, a shopping center owner and developer based in Elmsford, N.Y.

“While we’ve certainly seen a shift in cap rates across the country this quarter, this sale represents the fact that private investors are still willing to pay a premium for best-in-class tenants in high barrier-to-entry markets,” Holmes said. “With nearly 2.5 acres of prime real estate on Long Island and a 20-year lease, this property will be a generational asset that can justify a cap rate below the 10-year treasury due to the long-term viability and appreciation of the real estate.”

Located 40 miles east of Manhattan, Huntington is a major source of employment on Long Island. The property is positioned as an outparcel to Target one mile east of the Walt Whitman Shops, a super-regional shopping center with more than 100 stores.

In the Atlanta area, Northmarq Investment Sales Broker Jeff Enck sold Towne Crest Village in McDonough, Ga., for $5.7 million. Located at 2081 Jonesboro Road, the 20,053-square-foot retail strip center was 100 percent leased to 10 tenants at closing. Enck represented the Fort Myers, Fla.-based private buyer in the transaction.

“Well-maintained and well-leased retail properties like Towne Crest Village continue to be highly sought after, despite the rise in interest rates,” Enck said.