762 Route 18 in East Brunswick — Courtesy: R.J. Brunelli & Co. LLC
By Joshua Burd
A developer has acquired the 25,000-square-foot home of a Jersey Strong health club in East Brunswick, in one of two newly announced property sales by R.J. Brunelli & Co. LLC.
The brokerage firm represented the seller, WOW Plaza III LLC, in the transaction at 762 Route 18. KHC Development Inc., a New York-based buyer, purchased the freestanding building for $4.93 million, which equates to a capitalization rate of 7.6 percent.
“Jersey Strong has been operating at that location for over 10 years and signed a long-term lease with the building’s new owner to remain there,” said Mario Brunelli, a principal and vice president for investment sales with R.J. Brunelli. Ellen Quentzel of Jordan Baris Inc. Realtors represented the buyer, while Brunelli also represented Jersey Strong on the new lease.
Additionally, Brunelli represented East Orange Retail Holdings LLC on its sale of a 12,682-square-foot Dollar Tree building at 325 Central Ave. in East Orange, according to a news release. Real estate investor Arie Wilensky acquired the central business district building for $2.9 million, the brokerage firm said, noting that Dollar Tree has been a tenant at the site for six years and will continue to operate there.
“Both sales were executed as 1031 like-kind exchanges, under which the sellers immediately use the proceeds to acquire other properties,” Brunelli said. “These tax-advantaged transactions have fueled the tremendous upsurge we’ve been seeing in commercial property sales.”