Marcus & Millichap said it recently closed the sale of the Ocean County Middle Market Portfolio, a 10-property, 310,023-square-foot retail and office portfolio in the Ocean County townships of Toms River and Brick. Leased to over 100 tenants, the portfolio is 70% occupied.
The portfolio sold to Horizon Equities for $46 million.
“Part of the portfolio is located in Holiday City, an area of Toms River catering to a large population of senior citizens. The income from this portfolio is diversified by a large number of tenants, which mitigates risk,” Alan Cafiero, senior managing director investments, Marcus & Millichap, stated.
Cafiero, Brent Hyldahl and Seth Goldberg of Marcus & Millichap, along with Brad Nathanson, Institutional Property Advisors senior managing director, investments, represented the seller, Edele Hovnanian, and procured the buyer.
“Although Horizon Equities is a national firm, we started in New Jersey and have 82 years of family history here,” Joe Kotler, founder and managing partner of Horizon, said. “The people of Central Jersey matter to us and this acquisition reflects our concern. We will continue to invest in local businesses here and work alongside our tenants to upgrade the portfolio for mutual success.”
Minutes from Jersey Shore and near major employment centers in Philadelphia and New York City, the properties are accessible from Route 37, Route 9 and the Garden State Parkway. The portfolio benefits from strong local demographics in Toms River, Brick and Lakewood, densely populated municipalities in Ocean County, where average annual household income is nearly $100,000. The properties are in Toms River, except Yorktowne Plaza in Brick. There are five multitenant retail properties, two medical offices, two single-tenant net-leased properties and a property for redevelopment.
The multitenant retail assets are Bellcrest Plaza, a 105,000-square-foot center anchored by RWJBarnabas Health; Holiday City Plaza I, a freestanding, 37,902-square-foot enclosed shopping mall; Holiday City Plaza II, a 37,712-square-foot strip center anchored by Provident Bank; Holiday City Plaza III, a 43,440-square-foot strip center anchored by Ivy Rehab; and Yorktowne Plaza, a 41,915-square-foot center 93% occupied by 22 tenants.
The medical office properties are Holiday City Medical Center, an 18,000-square-foot office building 85% occupied by 14 tenants; and a 6,470-square-foot, free-standing building occupied by the Social Security Administration. The single-tenant, net-leased assets are a 14,564-square-foot Rite-Aid with approximately 6.5 years remaining on a 20-year lease term; and a 2,500-square-foot Wells Fargo with 7.5 years remaining on the lease and two five-year renewal options. The property for redevelopment is a 2,000-square-foot former PNC Bank with a double drive-through and 17 parking spaces.