Home Depot at 75 McLean Blvd. in Paterson — Courtesy: Newmark
By Joshua Burd
A family office has sold a net-leased Home Depot property in Paterson for $34 million, under a newly completed transaction by Newmark.
In a news release Friday, the real estate services firm said it represented the seller in the transaction at 75 McLean Blvd., a 10-acre property about two miles north of Interstate 80. An undisclosed institutional buyer purchased the site of the 120,000-square-foot, ground-leased building.
“We have continued to see properties with investment-grade tenants and long-term triple-net leases in attractive locations command premium pricing in line with, or exceeding, pre-pandemic levels due to the dearth of inventory available,” said Matt Berres, an executive managing director with Newmark. “This tenant checked all the boxes as an ideal net lease investment and was one of less than a handful of Home Depot properties to trade north of $30 Million in the past five years nationally.”
Berres and Director Samer Khalil, who are based in Newmark’s Irvine, California office, completed the assignment alongside Executive Managing Director Steven Schultz, who is based in Rutherford.
“With the tenant owning most of its real estate, the pricing and deal terms were reflective of the rare and attractive opportunity to acquire a long-term net leased Home Depot in an excellent location,” Khalil said.
Berres cited the continued demand for single-tenant properties with strong credit tenants and long-term passive lease structures, namely among those housing essential businesses such as Home Depot.
“Grocery, drug stores, convenience stores, medical and industrial are among the most sought-after single-tenant property types for investors and lenders alike,” he said.