Riverhead, NY JLL Capital Markets closed the sale of the nine-building, 395,000 s/f, grocery-anchored Riverhead Centre.
JLL represented the seller, AFL-CIO Building Investment Trust advised by PNC Realty Investors, and procured the buyer, Prestige Properties & Development Co. Inc.
The JLL Capital Markets Retail Investment Sales and Advisory Team was led by Jose Cruz, Kevin O’Hearn, J.B. Bruno and Mark Belenky.
Built in 2003, the 99% leased property is highlighted by ShopRite, which replaced a Waldbaums in 2018 and is contracted under a long-term lease. The ShopRite ranks as the most visited grocer in the immediate area. Riverhead Centre is also anchored by Home Depot, which has been in occupancy at the Property for 20 years and yields 910,000 annual visits. Additional notable tenants include Bed Bath & Beyond, Best Buy, Petco, Michaels, DSW Shoe Warehouse, Famous Footwear, Barnes & Noble, Ashley Home Store and IHOP. In total, 82% of the GLA is occupied by national tenants, and the property benefits from 9.3 years of remaining WALT. Additionally, the property was purchased free and clear of any existing financing.
Situated on 50 acres at 1430-1550 Old Country Rd., Riverhead Centre sits at a signalized intersection in the heart of the Riverhead retail corridor with approximately 2,003 feet of frontage along Old Country Rd. The property is exposed to an impressive traffic count of approximately 31,000 vehicles per day, and an average household income of $153,057 within Suffolk County. The center is also only one mile from both I-495/LIE and NY State Route 25, accessible by an affluent shopper base in the Hamptons and North Fork.
“The demand for well-located, grocery-anchored retail continues to remain strong in the suburban New York Area. Investors liked Riverhead Centre given the stability of the cash flow as well as the future upside rent growth,” said Cruz.
“Prestige Properties specializes in the acquisition, development and management of institutional-quality retail assets,” said CEO of Prestige Properties, Sam Shalem. “Riverhead Centre is a great addition to our more than 6.5 million s/f of retail properties under ownership in the NY, NJ, PA, MA, CT NC and FL markets.”
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