ShopOne Centers REIT Buys NJ Mall for $26M Cash
Real estate investment trust ShopOne Centers REIT has paid $26.5 million for a shopping center in South Plainfield, N.J., Commercial Observer can exclusively report.
The cash purchase of the 140,000-square-foot mall was made possible by a new credit facility that ShopOne obtained from KeyBanc Capital Markets in November, according to Michael Carroll, the REIT’s chief executive officer. Last month, CO reported that the credit would be used both to replace existing debt and to acquire new shopping centers.
The latest purchase, Oak Park Commons, at 913 Oak Tree Avenue, is 98 percent occupied with 22 tenants, anchored by an outlet of supermarket chain Acme Markets. The shopping center, which appears to have been previously owned by Pennsylvania-based WP Realty, also hosts a CVS, a McDonald’s and two automotive stores.
WP Realty did not immediately return a request for comment.
“The purchase of Oak Park Commons aligns with our strategy of acquiring well-located shopping centers in densely populated, fundamentally strong markets across the country,” Carroll said in a statement. “This property is particularly attractive considering its prime position in a major transportation corridor and the opportunity to unlock incremental value through operational and capital improvements.”
In an uncertain moment for retail, New York City-based ShopOne touted the favorable demographics of the community surrounding Oak Park. South Plainfield, 25 miles southwest of Downtown Manhattan, boasted a median household income of nearly $92,000 in 2016, according to U.S. Census data. Retail sales per capita in the town topped $20,000 in 2012, the most recent year for which data are available.
“There is strong demand from tenants for strong, well-located shopping centers,” Carroll wrote in an email to CO. “The center features everyday necessity goods and services including grocery, drug, banking, restaurants and medical.”