Kearny Square in Kearny — Courtesy: Cushman & Wakefield
By Joshua Burd
The developer of a two-year-old, 139,900-square-foot retail center in Hudson County has sold the property to a fund managed by Bentall Kennedy, brokers with Cushman & Wakefield said.
The property, Kearny Square in Kearny, changed hands recently for an undisclosed price. The complex was 100 percent leased to 13 tenants at the time of the sale and is anchored by BJ’s Wholesale Club, sitting along a busy stretch of Passaic Avenue.
The C&W investment sales team of Andy Merin, David Bernhaut, Gary Gabriel, Brian Whitmer, Seth Pollack and Frank DiTommaso II represented the seller, the original developer. The team also procured the buyer, Bentall Kennedy’s U.S. Core Fund.
Merin said the property “is distinguished by its location within Kearny’s redevelopment district” and within an Urban Enterprise Zone that offers sales and use tax exemptions and other incentives.
“The area is also being transformed into a vibrant residential and retail neighborhood, with a 280-unit residential project under construction directly across from Kearny Square that will provide new and attractive residential apartments to the area and will bring in additional young professionals and other consumers,” Merin said.
Kearny Square, which was delivered in 2016, is shadow-anchored by ShopRite, C&W said. The property sits one mile north of Interstate 280 and less than five minutes from downtown Newark and the burgeoning Harrison area.
Other tenants include fast casual eateries and personal well-being services.
“The urban infill location of Kearny Square is a perfect fit,” Whitmer said. “The immediate area has a dense and growing population but has lacked retail services and amenities. Kearny Square fulfills this need and is well-positioned for long-term success as it continues to service this rapidly growing community.”
The marketing team said the deal drew interest from regional and national institutional and private buyers. Meantime, DiTommaso noted that the “superior quality of this property and the long-term growth potential of the area was a major attraction,” while also crediting the developer for positioning the property as a dominant retail center.