10-50 International Drive South in Flanders — Courtesy: JLL
By Joshua Burd
A major retail center in Morris County is on the market for sale after last changing hands in 2021 and a series of upgrades aimed at repositioning the property, brokers with JLL said.
Located in the Flanders section of Mount Olive, the complex at 10-50 International Drive South spans 378,385 square feet and sits just off Route 206. It was also 99 percent leased at the time of an offering earlier this month, with a 135,039-square-foot Lowe’s store as its anchor alongside tenants such as TJ Maxx, HomeGoods, Michael’s and Ross Dress for Less.
The center now known as The Gardens is also minutes from Route 46 and Interstate 80, JLL added, noting that it serves “a wide trade area given the scarcity of power centers serving western Morris County and its location within the restrictive Highlands Watershed area.” That has helped fuel 95,000 square feet in leasing activity, several long-term renewals and additional investments totaling more than $10 million since ownership bought the property in 2021, including façade, roof and parking lot improvements.
“The Gardens provides a dynamic mix of necessity-based retail, (food and beverage) and complementary local retailers,” brokers said in JLL’s marketing materials. The firm’s Kevin O’Hearn, J.B. Bruno, Jose Cruz and Michael Zlotnick are marketing the property on behalf of the would-be seller, with Max Custer available for financing advisory and David Townes and Alana Friedman available for leasing support.
Black Lion Investment Group, a Beverly Hills, California-based firm, announced in late 2021 that it purchased the center for just under $50 million. JLL’s recent offering noted that the 77.3-acre property contains 10 buildings, including seven pads that can be readily subdivided and sold individually, while ownership is building a new pad for Panda Express and Chipotle after the chains recently signed 10- and 15-year leases, respectively.
Five tenants — Lowe’s, Wendy’s, McDonalds, Longhorn Steakhouse and Wells Fargo — are on ground leases, while the Michael’s and a neighboring Walmart bookend The Gardens’ largest multitenant building, JLL said. National operators make up 92 percent of base rental revenue, while the property has 5.61 parking spaces per 1,000 square feet.
JLL added that retail vacancy in western Morris County has been in the single digits over the past 10 years and is currently 6.6 percent. Flanders, meantime, has an average household income of more than $181,000.
“The Gardens is a premier retail power center strategically positioned with superior highway access, providing a robust and durable cash flow opportunity through its nearly 99 percent stabilized occupancy and (weighted average lease term) of 10.3 years,” JLL wrote.
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Author: Joshua Burd