Newport Beach, CA (June 28, 2023) – SRS Real Estate Partners’ National Net Lease Group (NNLG) announced today it has completed the ground lease sale of a 185,682-square-foot (sf) property occupied by Walmart located at 1050 W. Edgar Road in Linden, NJ. Built in 2019, the property is situated on 14.02 acres and has a corporate-guaranteed lease in place with 17 years remaining.
SRS NNLG’s Managing Principals Matthew Mousavi and Patrick Luther, Managing Director Britt Raymond and Senior Vice President Kyle Fant represented the sellers, Dallas-based developer Cypress Equities and San Francisco-based investment firm Stockbridge Capital Group. The buyer, a partnership of several individuals in a large 1031 exchange, was represented by David Chasin with Los Angeles-based Pegasus Investments Real Estate Advisory.
Walmart is the anchor tenant to newly developed Legacy Square, a 47-acre shopping center where the historic General Motors plant formerly operated. Other tenants include LA Fitness, Wawa, Chick-fil-A and Starbucks, among others. Walmart relocated to this site from Aviation Plaza across the street, a 550,000-sf power center anchored by Target, Home Depot, Marshall’s, and Old Navy, among others.
Legacy Square features a new LA Fitness adjacent to Walmart, several strip centers, and outparcels occupied by Chick-fil-A, Panera, Taco Bell, Starbucks, Wawa, Freddy’s Frozen Custard & Steakburgers, and a two-tenant building with AFC Urgent Care and Aspen Dental. The concentration of national and regional retailers bodes well for crossover traffic for Legacy Square.
“The Walmart sale is part of a larger break-up strategy for eight parcels of Legacy Square, which when completed will be valued in excess of $86.5 million,” said Mousavi. “Within the past few months we executed the sale of the Taco Bell outparcel as well as the Chick-fil-A, to separate buyers. Additionally, the Panera, Starbucks, AFC Urgent Care/Aspen Dental properties are under contract, and we are also marketing the Wawa and Freddy’s Frozen Custard & Steakburgers, the remaining two available outparcels within Legacy Square. The investor demand for these types of assets remains strong as evidenced by these transactions, with the buyers being sourced from across the country.”
“Break-up strategies for larger retail centers is a strategic way for sellers to add more value to their exit strategy,” said Fant. “By selling off the assets one by one, the buyer pool is expanded and the pricing is typically more than if one buyer acquired the entire center. This strategy creates a winning situation for the seller as well as the buyers, who can have ownership in a portion of a large, institutional-quality shopping center that they otherwise could not afford or have access to.”
The highly visible Walmart site is located along W. Edgar Road and Interstate 95. The property is within an affluent trade area with more than 460,000 residents and 160,000 employees within a five-mile radius.
In 2022, SRS’ Investment Properties Group (IPG) and National Net Lease Group (NNLG) completed more than $2.8 billion in deal volume comprised of 705 transactions in 49 states. SRS currently has in excess of 550 properties actively on the market with a market value surpassing $2.8 billion.
About SRS Real Estate Partners
Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with more than 25 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust. For more information, please visit srsre.com.
SRS’ Investment Properties Group (IPG) & National Net Lease Group (NNLG) is a unified platform of seasoned net lease professionals located and transacting nationally with all underwriting and marketing efforts strategically located in Southern California. In 2022, the group completed more than 705 sales across 49 states and has over 160 brokerage professionals nationally. From proactive sales to targeted acquisitions and tailored debt and equity solutions, SRS’ National Net Lease Group offers comprehensive services to net lease owners and investors. Superior speed-to-market, world-class marketing materials, a deep investor database and unparalleled retail submarket intelligence from the entire SRS platform allow SRS’ National Net Lease Group to deliver the best possible returns. For more information, please visit srsre.com/national-net-lease-group.