This week, Urstadt Biddle Properties Inc. (NYSE: UBA & UBP) announced it had acquired an equity interest in a new entity that owns the Washington Commons Shopping Center in Dumont, New Jersey. The shopping center measures in at 75,400 square foot and it is also home to a residential compound. The mixed-use compound contains two buildings. The first is a 44,300 free-standing building used by anchor shop Stop & Shop. The other building is a 3-story retail and multifamily building with several stores.
- Valley Medical Group
- Great Clips
- Pet Valu
The second building is also home to 26 residential apartment. The residential apartment contains a mixture of one bedroom, two bedroom and studio apartment. Residents are able to enter their apartments through a separate entrance located behind the shopping center. At this point, the property is 100% leased. All current retail tenants, except for Great Clips, have called the shopping center home since 1997.
Dumont is located in the southern portion of Bergen County. Washington Avenue is considered a commercial artery, which connects to commercial markets in the north and south. The Stop & Shop grocery store at the Washington Commons Shopping Center is the only grocer in the Dumont area. Washington Avenue is also conveniently positioned near a Walgreens, Burger King and a Chase Bank. Dumont is just 10 miles from Manhattan.
The acquisition took the form of a “DownREIT partnership”. The seller will receive a combination of money and operating partnership units in the new entity that will take over the property. As the managing member, Urstadt Biddle Properties will be responsible for managing and leading the property. Urstadt paid initial equity of $3.9 million representing 31.4% equity interest. More details can be found here.