Northmarq, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a freestanding grocery store located at 1937 West Main Street in Stamford, Connecticut. The 69,733-square-foot supermarket is leased to Stop & Shop, a regional grocer located in the Northeastern U.S. and a wholly owned subsidiary of Ahold Delhaize, one of the world’s largest food retail groups. Jason Maier of Northmarq represented the seller, a private investor based in New York. The property was acquired for approximately $46.7 million by a Pennsylvania-based institutional investor. Both buyer and seller were involved in 1031 exchanges.
“While cap rates have remained low and stable, interest rates have skyrocketed,” said Maier, Senior Director in Northmarq’s New York office. “For owners who had previously been unable to defease their loans, once interest rates shot up and the prepayment penalties went down, it created a rare opportunity to finally be able to capitalize on the cap rate price with a reduced prepayment penalty. Our client saw the perfect window to sell this high-quality asset with plans to exchange into a variety of retail and medical assets to diversity their portfolio.”
The property was originally built in 2006 and is situated on a 7.11-acre corner lot. Less than 40 miles northeast of Manhattan, the city of Stamford, Connecticut boasts strong demographics and rapid population growth. Neighboring businesses in the surrounding retail corridor include Home Depot, CVS Pharmacy, a Public Storage facility and numerous quick service restaurants, among many others.