SECAUCUS, NJ—Mill Creek Mall LLC, a company affiliated with Hartz Mountain Industries, sold the Mall at Mill Creek in Secaucus, NJ, to an affiliate of New York Life Insurance for $76.2 million. The sale, which closed earlier this year, was announced by CBRE.
Real Capital Analytics, a proprietary research database, says the sale price, equivalent to $179 per square foot, was at a 5.5 percent cap rate for the 1986-vintage, 424,000 square-foot property.
A team from CBRE National Retail Partners led by Jeffrey Dunne, David Gavin and Travis Langer represented the owner in the sale. The team also found the buyer through NYL Real Estate Investors on behalf of an institutional client that was not identified.
“Mill Creek provided a rare opportunity to purchase a dominant center within a vibrant, mixed-use development such as Harmon Meadow,” CBRE’s Dunne says. “We expect that the buyer will fare well with the acquisition due to the center’s credit rent roll, strong position in the market and additional upside through lease-up of the 47,000-square-foot vacancy.”
The Mall at Mill Creek is a power center with a strong rent roll, including national and credit tenants, including Kohl’s, TJ Maxx, Toys/Babies “R” Us and Bob’s Discount Furniture. The center is in the heart of Harmon Meadow, a 200-acre, master-planned, live-work-play development in Secaucus, just four miles outside of Manhattan. Harmon Meadow includes approximately two million square feet of office space, one million square feet of retail, nine hotels, a convention center and numerous restaurant and entertainment options.
The center’s highly-accessible location at the intersection of the NJ Turnpike and Route 3 provides regional access, creating a wide trade area that is estimated to include more than 442,000 people, with more than 261,000 residents within just three miles of the center.