Newburgh Towne Center at 1425-1433 Route 300 in Newburgh, New York — Courtesy: JLL
By Joshua Burd
A grocery-anchored shopping center in New York’s Orange County — some 30 miles north of the New Jersey border — is on the market for sale as part of a new offering by JLL.
According to the firm, whose Morristown-based capital markets is leading the assignment, the 145,591-square-foot property in Newburgh is 99 percent leased to roster of national retailers. They include Stop & Shop, its anchor, along with HomeGoods, Marshalls and a mix of food and beverage, merchandise and service users.
JLL said the Newburgh Towne Center property at 1425-1433 Route 300 benefits from strong regional accessibility and its location along Interstate 87. It’s also a half-mile from Interstate 84, while it capitalizes on a burgeoning, high-density trade area with a population of 86,324 with households earning an average of $106,999 annually within five miles.
What’s more, the firm pointed to multiple value-add opportunities with development potential.
“Newburgh Towne Center has experienced strong recent leasing momentum, with the imminent signing of a premier national fast casual tenant representing a 62 percent premium to in-place rents, creating a strong basis for future mark-to-market of in-line tenants,” JLL wrote in its offering materials. “The property presents the opportunity for investors to develop the adjacent 5.4-acre land parcel, which offers impressive roadside frontage and spinoff potential.
“With a (weighted average lease term) of over 6.5 years and significant term remaining with Stop & Shop, the property offers investors durable long-term cashflow, with upside in the mark-to-market of in-line tenants and outparcel development.”
The firm’s J.B. Bruno, Jose Cruz, Kevin O’Hearn and Michael Kavaler are marketing the property with support from financing specialist Aaron Niedermayer and leasing brokers David Townes and Alana Friedman. They added that Orange boasts a low 10-year trailing vacancy rate, supply constraints and a “remarkable uptick” in retail space demand, with leasing volume tripling and effective rents growing around 3 percent annually over the past five years.
