LJL Realty paid $44 million to acquire Hazlet Town Center from OASG Hazlet, an affiliate of Onyx Equities, in a 1031 exchange. CBRE’s National Retail Partners’ team of Jeffrey Dunne, David Gavin and Travis Langer represented the seller.
A 1031 exchange, also known as a like-kind exchange, allows investors to defer capital gains taxes when selling an investment property and reinvesting the proceeds in a similar property as defined by Section 1031 of the U.S. Internal Revenue Code. The main benefit is the postponement of paying capital gains taxes.
CBRE’s Jeff Dunne commented, “The center’s attractive rent roll, grocery anchor, and long-term leases provide highly stable income with additional upside through the lease-up of the remaining inline vacancy.”
The 190,000-square-foot retail center is situated at 3010-3070 Route 35 near Bethany Road in Hazlet. Anchored by Aldi, Urban Air, and Burlington, the shopping complex is 90% leased and features a broad mix of inline tenants and out parcels offering retail, services, and dining, including Bank of America, Planet Fitness, Panera, and Subway. A Wawa outparcel in the center was not included in the sale.
For many years, the center was anchored by Kmart and Pathmark. The current owner, Onyx Equities, has spent nearly a decade renovating and repositioning the site since both anchor stores closed in 2016. Other complementary area retailers include Target, Home Depot, Costco, HomeGoods, and TJ Maxx.
“We continue to see strong demand in Metro NY for properties like Hazlet Town Center, which provide predictable cash flow in infill, high demographic markets,” added David Gavin of CBRE.
