Vernon Valley Plaza is a 93,029-square-foot retail property located in Vernon Township in Sussex County. – MARCUS & MILLICHAP
A grocery-anchored retail shopping center in the Garden State has a new owner following a recent sale in Sussex County.
On Jan. 23, Marcus & Millichap announced the sale of the 93,029-square-foot Vernon Valley Plaza in Vernon Township for $19 million.
Alan Cafiero, David Cafiero, and John Moroz, investment specialists in Marcus & Millichap’s New Jersey office, had the exclusive listing to market the property on behalf of the seller, regional New Jersey developer Sussex RWP LLC. The trio also procured the buyer, Vernon Valley Plaza LLC, a local investor.
Located at 530 County Route 515, Vernon Valley Plaza is anchored by an ACME and counts the U.S. Postal Service among its tenants.
Coming out of the pandemic, grocery-anchored assets have proven resilient and enticing due to the necessary nature of such tenants.
According to a statement from Alan Cafiero, senior managing director investments, “It’s rare to find grocery-anchored retail hit the market in New Jersey. The property attracted a significant amount of interest from a wide array of buyers.”
Financing for the purchase was arranged by M&M First Vice President, Capital Markets Joseph Belgiovine, who added that “lenders recognize the intrinsic value of a grocery-anchored shopping center.”
Belgiovine, who is also based in the New Jersey office, arranged a $13.3 million acquisition loan. According to a Jan. 20 announcement about the financing, the five-year loan features a fixed interest rate of 5.30%, 30-year amortization and 70% loan-to-value (LTV).
“Despite current market volatility, we secured various financing options for our client to consider, and he ultimately selected an aggressive option which yielded a greater than expected rate of return,” Belgiovine continued.
Situated at the intersection of County Road 515 and Main Street, the shopping center is just 2 miles from Mountain Creek and 7 miles to another regional attraction, Crystal Springs.
Editor’s note: This story was updated at 3:44 p.m. ET on Jan. 23, 2023, to include additional details about financing for the transaction.
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