Treeco has acquired a “dream” property in Somerset County: a recently built Cinemark movie theater situated along Route 22.

JLL Capital Markets represented the unnamed seller of the 6-acre Watchung site, which was acquired by a joint venture between Agus Holdings and Treeco. Financial terms were not disclosed.

The single-tenant, 37,630-square-foot building was constructed in 2019 on the site of a former Sears store. According to Treeco Managing Member Andrew Fish, the location has housed just two occupants since it was developed more than 70 years ago.

The 10-screen cinema offers luxury, heated recliner seats and an XD auditorium. In July, Plano, Texas-based Cinemark celebrated the highest domestic box office in company history. That news followed a sunny second quarter report, in which the company highlighted its position as “the only major U.S. exhibitor to have achieved and maintained a meaningful increase in market share since reopening [following COVID closures], which remains up more than 100 basis points compared to our pre-pandemic average.”

Cinemark’s total revenue for the second quarter was up 26.6% compared with the same period the previous year. The company also reported increased revenues for admissions (up by more than 25%) and concessions (up by 30.6%), which it said were driven by an almost 24% increase in attendance to 64.4 million moviegoers.

JLL said Cinemark has a remaining lease term of more than 10 years.

The Retail Capital Markets team representing the seller was led by Director J.B. Bruno, Senior Managing Director Kevin O’Hearn, Director Ryan Robertson, and Senior Managing Director and New Jersey Office co-Head Jose Cruz.

According to Bruno, “The property’s new vintage, location along a busy stretch of Route 22 and complementary adjacent uses drove investor interest in this transaction.”

Annual average daily traffic on the highway is 63,000 vehicles and average household incomes in Watchung are approximately $240,000, according to JLL.

Based in Englewood, Treeco develops, owns and manages a diversified portfolio of properties in urban and highly populated suburban locations along the Northeast corridor. Fish said the company was excited to work with Agus on the acquisition of the “outstanding retail corner.”

“This is the best intersection in the Watchung marketplace, evidenced by the fact that this location has been continuously occupied by only two separate tenants since being developed over 70 years ago,” he continued. “It’s always our dream to acquire this property as it is immediately adjacent one of our legacy assets [Watchung Commons].”

Agus Holdings Principal Josh Agus also noted the property’s prime location. “This corner within an exceptional retail corridor stands out as the most coveted corner within the entire trading region,” he said. “Our pursuit is dedicated to discovering remarkable retail spots that hold an irreplaceable presence within the New York and New Jersey trade zones, and this location embodies all the essential elements we seek.”