Newmark Completes $390 Million Sale of Grocery-Anchored Retail Portfolio in Massachusetts and Rhode Island

Rhea-AI Summary

Newmark has successfully completed the $390 million sale of a portfolio comprising nine grocery-anchored shopping centers, totaling 729,437 square feet across the Greater Boston and Providence areas. The transaction, characterized as a generational opportunity, reflects strong investor demand for premier supermarket-anchored retail assets. The portfolio is primarily leased to reliable grocery anchors like Whole Foods and Shaw's, underscoring the centers' stability and community importance. The deal was facilitated by Newmark's Boston Capital Markets Group, representing the seller, Gravestar, and procuring buyer TA Realty.

Positive

• Successful sale of nine grocery-anchored shopping centers for $390 million, enhancing cash flow.
• Portfolio is 95% leased with strong supermarket anchors, ensuring steady rental income.
• High demand indicates a strong retail market in New England, enhancing investor confidence.

Negative

• None.

TA Realty and operating partner, Wilder, acquire nine premier shopping centers totaling 729,437 square feet across the greater Boston and Providence areas

BOSTON, May 18, 2022 /PRNewswire/ -- Newmark announces the $390 million sale of nine grocery-anchored shopping centers located across Greater Boston, Massachusetts and Providence, Rhode Island. Newmark Co-Head of U.S. Capital Markets Robert Griffin, Vice Chairman Geoffrey Millerd and Managing Directors Jonathan Martin and Paul Penman, all of the firm's Boston Capital Markets Group, represented the seller and procured the buyer, TA Realty. Newmark Managing Director Mathew Adler provided additional support; Executive Managing Director Richard Ruggiero acted as the local broker for the Rhode Island transaction.

"This portfolio represented a generational opportunity—the first-time offering of the highest-quality, privately-owned collection of shopping centers in New England," said Millerd. "Phenomenal investor demand for this portfolio underscores the strength of the market for premier supermarket-anchored retail assets in New England."

"We are extremely pleased with the portfolio sale to TA Realty, a respected Boston-based institutional investor that is working with Wilder, a creative, experienced and community-oriented retail operator," continued Millerd. As an operator, one of Wilder's most notable local projects is Arsenal Yards in Watertown, Massachusetts. Totaling more than one million square feet, the vibrant mixed-use Arsenal Yards development combines destination retail, urban living, entertainment and dining with life science and laboratory workplaces. Gravestar, the seller, is a privately held company managing commercial real estate for multiple owners.

Presently 95% leased, the portfolio benefits from strong grocery-anchor tenancy via Whole Foods Market, Shaw's, Star Market and Dave's Fresh Marketplace, all of which feature successful long-term operating histories within their respective locations.

"The supermarket anchors are complemented by a mix of high-quality junior anchor tenants, convenience retailers and prized local tenants," said Penman. "This tenant mix, and in particular the longstanding local operators at each center, has established the properties as highly-popular retail destinations."

"These assets serve as focal points within their respective communities," added Martin. "The seller has been meticulous in its maintenance of the assets and has consistently invested in the centers, enabling them to accommodate evolving shopper demands and community needs. The seller was very focused on finding a successor ownership team that would be committed to the stewardship of the centers and would make a positive contribution to the surrounding communities."

The portfolio includes eight assets in Massachusetts: Auburndale Plaza (Newton), Brookline Plaza (Brookline), Horn Pond Plaza (Woburn), Norwood Plaza (Norwood), Porter Square Shopping Center (Cambridge), Sudbury Plaza (Sudbury), Waltham Plaza (Waltham) and Wellesley Plaza (Wellesley). Additionally, it includes one asset in Rhode Island: Pontiac Avenue Plaza (Cranston).

Newmark Senior Financial Analyst Casey O'Brien and Financial Analyst Coley Cannon provided financial analysis support for the transaction.

About TA Realty
TA Realty is among the largest and most experienced providers of real estate investment management services to U.S. and non-U.S. institutional investors. Since its inception in 1982, TA Realty has managed $36 billion of real estate assets through value-add and core strategies and customized separate/advisory accounts. TA Realty's investment philosophy focuses on creating diversified real estate portfolios that aim to generate strong cash flow, receive intensive asset management, and seek to achieve long-term value creation. For four decades, TA Realty has maintained this philosophy through multiple real estate and economic cycles, a strength recognized by pension funds, endowments, foundations, and high-net-worth individuals. For more information, please visit www.tarealty.com.

About Wilder 
Wilder is a Boston-based real estate development, management and leasing firm specializing in the positioning of retail properties. Privately held and owner-managed, Wilder's mission continues to be to create vibrant shopping places that meet and exceed the expectations of customers, retailers, and investors. From lifestyle centers and urban properties to community centers and mixed-use developments, Wilder has developed, managed, and leased over 20 million square feet of retail properties throughout the United States and Puerto Rico. The Company continues to have a diverse portfolio of properties throughout the East Coast including Greater Boston's Arsenal Yards, Silver Spring Square in Pennsylvania, and Daniels Marketplace in Fort Myers, Florida. For more information, please visit www.wilderco.com.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of nearly $3.1 billion for the twelve months ending March 31, 2022. Newmark's company-owned offices, together with its business partners, operate from approximately 170 offices with 6,300 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company's business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

 

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SOURCE Newmark Group, Inc.

FAQ

What is the significance of Newmark's $390 million sale of shopping centers?

The sale represents a significant transaction in the retail sector, highlighting strong investor demand for grocery-anchored assets.

Which companies were involved in the sale of the shopping centers?

Newmark represented the seller, Gravestar, while TA Realty was the buyer, collaborating with Wilder as the operating partner.

What does the portfolio sold by Newmark consist of?

The portfolio includes nine grocery-anchored shopping centers across Greater Boston and Providence, totaling 729,437 square feet.

Who are the primary tenants of the shopping centers sold by Newmark?

Key tenants include Whole Foods Market, Shaw's, Star Market, and Dave's Fresh Marketplace, indicating solid tenant quality.

What impact does this sale have on Newmark's financial performance?

The successful sale enhances Newmark's cash flow and reflects its strong position in the commercial real estate market.