Riverhead Centre, the Route 58 shopping center anchored by Home Depot and ShopRite, has been sold.
Prestige Properties & Development Company Inc. of New York City has taken ownership of the nine-building, 395,000-square-foot complex, JLL Capital Markets, which represented the seller AFL-CIO Building Investment Trust, said in a press release announcing the closing of the sale yesterday.
The price was not disclosed in the press release. Anonymous sources told Long Island Business News the shopping center sold for $71 million. A spokesperson for JLL was not immediately available for comment.
The nearly 50-acre Riverhead Centre property, which was developed in 2003, has had Home Depot as a tenant since it was built; the home improvement retail company yields 910,000 annual visits, according to data from Placer.ai cited by JLL. ShopRite ranks as the “most visited grocer in the immediate area” according to JLL.
Other tenants include retailers Best Buy, Petco, Michaels, Famous Footwear, Ashley Home Store and most recently, Barnes & Noble, and restaurants IHOP, Fridays and Country Rotisserie.
The property is located on the East End’s busiest commercial corridor. The property is exposed to approximately 31,000 vehicles per day, according to JLL.
“The demand for well-located, grocery-anchored retail continues to remain strong in the suburban New York Area. Investors liked Riverhead Centre, given the stability of the cash flow as well as the future upside rent growth,” Jose Cruz of JLL said in a press release.
“Prestige Properties specializes in the acquisition, development and management of institutional-quality retail assets,” said Prestige Properties CEO Sam Shalem. “Riverhead Centre is a great addition to our more than 6.5 million square feet of retail properties under ownership in the NY, NJ, PA, MA, CT NC and FL markets.”
The news that the shopping center has sold comes on the heels of news that a long-time tenant, Bed Bath and Beyond, would close all its remaining stores and filed for bankruptcy.
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