BJ's Club sale fetches $14m

Real Estate Weekly, Nov 26, 2008

Marcus & Millichap Real Estate Investment Services has arranged the sale of a ground lease to BJ's Wholesale Club in Manahawkin. The sales price is $14.9 million. Mark Taylor, a vice president of investments and senior director of Marcus & Millichap's National Retail Group (NRG) in Philadelphia; Dean Zang, an associate vice president investments and director of the firm's NRG in Philadelphia; and Christopher Munley, an investment specialist also in the firm's Philadelphia office, represented the seller.

SP 72 LLC, a New Jersey-based limited liability company, listed the property with Taylor and Zang in February. Within four months, Marcus & Millichap had procured six offers and ultimately selected the buyer, Shubert and Booth Theatre LLC, a New York City-based limited liability company. The buyer was represented by Bayard Street Capital and Real Estate Foundations Inc.

"This asset provided the investor with a rare opportunity to acquire a new big-box, single-tenant net-lease retail property located only minutes from the Jersey Shore and a short drive from the Philadelphia and New York metropolitan areas," says Zang.

The BJ's Wholesale Club building is subject to a new 20-year, triple-net unsubordinated ground lease with rent escalations scheduled every five years. The BJ's property is part of a larger retail development, which the seller will retain to construct two or more additional buildings in the near future.