Grocery-anchored shopping center in Hackensack changes hands

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Riverfront Plaza in Hackensack has one of the state’s biggest grocery brands as its key tenant — ShopRite — and a new owner.

JLL Capital Markets announced the closing on the sale of the 129,000-square-foot shopping center June 8. The firm marketed the property on behalf of the sellers — a joint venture of Regency Centers Corp. (Nasdaq: REG) and a separate client that was advised by LaSalle Investment Management.

West Palm Beach-based Sterling Organization acquired the property.

That company announced its purchase of Riverfront Plaza, along with The Grove, located in the Orlando Metropolitan Statistical Area, May 27. At the time, the company said the centers were acquired by its institutional grocery-anchored shopping center core fund — Sterling United Properties II LP, for $113.75 million, marking the 11th and 12th investments made by the fund. Sterling Organization did not return a request for comment prior to press time.

Located at 500 S. River Road on 13.8 acres, Riverfront Plaza is 96% leased with additional tenants including, Sherwin-Williams, Leslie’s Pool Supplies and Taco Bell.

The JLL Capital Markets team representing the seller was led by Jose Cruz, Kevin O’Hearn, Steve Simonelli, Michael Oliver and Grace Braverman. Of the sale, Cruz commented, “Grocery anchored retail within infill locations continues to be in high demand with both private and institutional investors.”

According to JLL Research’s Grocery Tracker 2022 report, grocery-anchored retail had the second-highest level of activity for property transactions in 2021, topping $13.3 billion. That activity appears to have persisted into 2022, with the shopping centers continuing to hold appeal for investors leaning into the “necessity-based” offerings inherent at the centers, as other recent deals exhibit. Also on June 7, CBRE announced the sale of the Stop & Shop-anchored Essex Mall for $47 million. Meanwhile, First National Realty Partners of Red Bank has steadily increased its portfolio with an eye toward the properties nationwide, snatching up a number recently, including one in South Jersey.

True to its name, Riverfront Plaza is situated along the Hackensack River, located at a signalized intersection less than 1 mile from major highways including Interstate 80 and Route 46. According to JLL, the city is one of the most densely populated in the state, with more than 605,000 residents earning an annual household income of nearly $110,000 within a 5-mile radius.