ERG handles $25 million sale of 70,000 s/f retail facility on a 313,632 s/f lot

ERG Property Advisors has handled the sale of 500 Chestnut Ridge Rd. for $25 million. The property is a 70,000 s/f freestanding retail facility situated on a 313,632 s/f lot. It is fully leased to The Great Atlantic and Pacific Tea Co. (A&P) for a term of 25 years pursuant to a lease that commenced in 1996. It has eight, five-year options remaining thereafter. The lease increases $1 per s/f every five years, including during the option periods. The cap rate is 7.4%. The tenant is responsible for all property expenses including roof and structure. A&P operates approximately 61,000 s/f of the premises, and subleases the remaining 9,000 s/f to various local tenants. The average sub-tenant rent is currently estimated to be $31 per s/f on a triple net basis. Located just two miles from the A&P Corporate Headquarters, the store is considered a trophy location. A&P recently spent approximately $4 million in renovations on the store. The site is located approximately 20 miles from New York City, and 10 miles from the Tappan Zee Bridge. The property is supported by strong demographics, with over 200,000 people located within a 5-mile radius, and an average household income that exceeds $105,000. Corporate headquarters in the area include BMW North America, Hilton Hotel, Perillo Tours, and a number of other corporate offices, including Sony, KPMG, IBM, and Minolta. For more information about this property, please contact Richard Guarino at (646) 253-0909 or [email protected], Andrew Greenberg at (646) 253-0950 or [email protected] or Christopher Pedota at (646) 253-0962 or [email protected] .