Newmark announced the off-market sale of a retail property, occupied by Home Depot, for $34 million.
The single-tenant, 120,000 s/f ground leased building is located at 75 McLean Boulevard in Paterson, New Jersey and situated on approximately 10 acres.
Newmark’s Executive Managing Director Matt Berres and Director Samer Khalil cooperated with Executive Managing Director Steven Schultz to represent the seller, a private family office in the transaction. The undisclosed, institutional buyer was represented by an outside firm.
“We have continued to see properties with investment grade tenants and long-term triple-net leases in attractive locations command premium pricing in line with, or exceeding, pre-pandemic levels due to the dearth of inventory available,” said Berres.
“This tenant checked all the boxes as an ideal net lease investment and was one of less than a handful of Home Depot properties to trade north of $30 million in the past five years nationally.”
Khalil added, “With the tenant owning most of its real estate, the pricing and deal terms were reflective of the rare and attractive opportunity to acquire a long-term net leased Home Depot in an excellent location.”
Berres and his team have been extremely active as of late with more than a dozen single-tenant properties sold in the past two months weeks and another 20 in escrow, further confirming that “essential” tenants, strong credit, long-term passive lease structures and quality underlying real estate fundamentals are at the top of net lease investors’ wish lists during the pandemic.
Berres noted, “Grocery, drug stores, convenience stores, medical and industrial are among the most sought-after single-tenant property types for investors and lenders alike.”
The parcel features a long-term ground lease to Home Depot, the world’s largest home improvement specialty retailer, with stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico.