ShopRite Anchored Grocery Center Hits Market for $16M; Excellent Store Sales

November Capital  /   November 2, 2023


11/1/2023 — WARETOWN, NEW JERSEY —-November Capital is pleased to present for sale Waretown Town Center in Waretown, New Jersey. Waretown Town Center is a thriving shopping destination located in Waretown, Ocean County, NJ. The center, spanning 87,535 square feet, boasts 98% occupancy and is anchored by ShopRite (improved ground lease), the leading grocer in Ocean County, contributing to nearly 50% of the property’s rental income.

ShopRite has a significant presence at the center, with almost a decade left on its improved ground lease and 15 years of tenure. This ShopRite location has extremely strong store sales and shows a very healthy rent to sales figure. ShopRite is the market leader with a 29.8% share of food sales in Ocean County, amounting to $603.2 million in sales, according to a 2021 market survey by Food Trade News.

The ShopRite is operated by the Saker Family. The Saker family has been operating grocery stores since 1916 when Richard Saker’s great-grandfather opened a “mom and pop” store in Freehold, New Jersey. Richard’s father Joseph joined Wakefern in 1947, a few months after it was established, and was an active member of the cooperative. Today, Richard and family, including brothers Tom and Joe and Richard’s son Rick, own and operate 39 ShopRites in central New Jersey and work tirelessly to create a “World Class” shopping experience for all their customers.

Constructed in 2008, Waretown Town Center was designed to serve the growing community between New Jersey’s Pine Barrens and the coastline. The property offers a diverse range of retail options, including medical facilities, food and beverage outlets, and other service  businesses.

With an impressive weighted average tenure of 13 years, the center features a modern mix of tenants, including food and beverage establishments, medical services, and other retail offerings. An internet resistant asset – investors can expect a reliable income stream, supported by a weighted average lease term of 8 years. Additionally, approximately 78% of the income is derived from tenants present since the center’s inception in 2008, and 75% comes from creditworthy national tenants.

Well located off of the area’s main thoroughfare that sees about 18,000 cars per day, Waretown Town Center presents a stable investment opportunity, offering a secure and enduring income source from essential tenants and a dominant grocery anchor.

Also included in the deal are two approved, improved and unbuilt outparcels. Condo #8 (Building carve out for 7,200 SF) and Condo #4 (1.08 AC.) Finally – the property benefits and is a part of New Jersey’s Payment in Lieu of Taxes (“PILOT”) Program.