Riverhead Centre at 1430-1550 Old Country Road in Riverhead, New York — Courtesy: JLL
By Joshua Burd
A nine-building, grocery-anchored retail center spanning nearly 400,000 square feet has changed hands on Long Island, in a deal arranged by JLL’s Morristown-based capital markets team.
Brokers with the firm represented the seller, AFL-CIO Building Investment Trust advised by PNC Realty Investors, in its trade of Riverhead Centre in the Suffolk County town of Riverhead. The buyer, Prestige Properties & Development Co. Inc., paid an undisclosed sum for the 395,000-square-foot complex at 1430-1550 Old Country Road, which is anchored by ShopRite and is 99 percent leased.
A team led by JLL’s Jose Cruz, Kevin O’Hearn, J.B. Bruno and Mark Belenky brokered the transaction, which also included procuring the buyer.
“The demand for well-located, grocery-anchored retail continues to remain strong in the suburban New York area,” Cruz said. “Investors liked Riverhead Centre given the stability of the cash flow as well as the future upside rent growth.”
Built in 2003, Riverhead Centre is also anchored by a Home Depot store that has been a tenant for 20 years and yields 910,000 annual visits, JLL said, citing data from Placer.ai. ShopRite, meantime, has been in occupancy since replacing Waldbaum’s in 2018 and is contracted under a long-term lease.
Additional tenants include Bed Bath & Beyond, Best Buy, Petco, Michaels, DSW and others, JLL said. Some 82 percent of the gross leasable area is occupied by national tenants, while the property benefits from 9.3 years of remaining weighted average lease term.
The buyer purchased the 50-acre property free and clear of any existing financing.
“Prestige Properties specializes in the acquisition, development and management of institutional-quality retail assets,” CEO Sam Shalem said. “Riverhead Centre is a great addition to our more than 6.5 million square feet of retail properties under ownership in the (New York, New Jersey, Pennsylvania, Massachusetts, Connecticut, North Carolina and Florida) markets.”