Northmarq investment sales brokers Maggie Holmes, Senior Vice President, and Mike Sladich, Managing Director completed the sale of a freestanding retail property located at East Jericho Turnpike in Huntington, New York. The property totals 4,996 square feet and is leased to Chick-fil-A, one of the largest American fast food restaurant chains. Holmes represented the seller, a shopping center owner and developer based in Elmsford, New York. A New York-based private family office in a 1031 exchange acquired the asset for $7.6 million reflecting a 3.68 percent cap rate.
“While we’ve certainly seen a shift in cap rates across the country this quarter, this sale represents the fact that private investors are still willing to pay a premium for best-in-class tenants in high barrier-to-entry markets.” said Holmes. “With nearly 2.5 acres of prime real estate on Long Island and a 20-year lease, this property will be a generational asset that can justify a cap rate below the 10-year treasury due to the long-term viability and appreciation of the real estate.”
The build-to-suit property is brand new with a double lane drive-thru and is situated on 2.47 acres. Approximately 40 miles east of Manhattan, the town of Huntington is a major source of employment for the New York metropolitan area. The property is ideally positioned as an outparcel to Target and just one mile east of the Walt Whitman Shops, a super-regional shopping center with over 100 stores, including Bloomingdale’s, Macy’s and Saks Fifth Avenue. Other neighboring retailers include CVS Pharmacy, Best Buy, Rite Aid and more.