The Shops at Ledgewood Commons Opens Under New Ownership in Roxbury

The Shops at Ledgewood Commons, a Former Mall Transformed into a Thriving Retail Hub, Acquired for $83 Million.

MORRIS COUNTY, N.J. - In a strategic expansion move, Urban Edge Properties has acquired The Shops at Ledgewood Commons, a sprawling 448,000-square-foot retail hub in Morris County, for a robust $83 million. This significant acquisition, situated prominently on Route 10 in Roxbury, was finalized in early April and publicly detailed during Urban Edge's first-quarter earnings report this Tuesday.

The property, which stands on the grounds of the former Ledgewood Mall, has been transformed into an open-air shopping destination over the past seven years. Today, it boasts high-profile tenants such as Walmart, Marshalls, Burlington, Ulta, Starbucks, and Chipotle, marking a successful repurposing initiative led by Advance Realty Investors.

“We’d love to find more assets like Ledgewood, and our team is busy evaluating anything that could be a fit,” Chairman and CEO Jeffrey Olson said during the REIT’s earnings call, according to a transcript. “The current interest rate volatility greatly benefits buyers like us who are both well-capitalized and highly trusted by sellers, brokers, and lenders. I believe we are at the top of that list in our markets.”

Urban Edge's acquisition comes with promising financial prospects, as noted by the real estate investment trust. The deal was closed with an initial capitalization rate of 7.9 percent. Additionally, the REIT has plans for further development, including two preapproved yet undeveloped out-parcels totaling 20,000 square feet. The company also highlighted a new five-year, $50 million mortgage at a fixed rate of 6.03 percent, with expectations for the first-year cash yield on the investment to exceed 10 percent.

The transaction was brokered by a team from Cushman & Wakefield, including Gary Gabriel, Frank DiTommaso, David Bernhaut, Andy Merin, and Max Helfman, representing Invesco and Advance in the sale. The acquisition financing was adeptly managed by Cushman & Wakefield’s John Alascio, TJ Sullivan, Chuck Kohaut, and Mitch Rothstein.

This acquisition is part of a broader strategy by Urban Edge Properties, which earlier this year added Heritage Square, an 87,000-square-foot shopping center in Watchung, to its growing portfolio. The Ledgewood Commons location is anchored by a 164,087-square-foot Walmart Supercenter, which opened in the fall of 2020 following the expansion of an existing store. This development has enhanced the retail center's appeal by relocating Marshalls to a more prominent location and introducing a variety of new retailers and food operators.

“Our partnership is proud of the creativity and the resulting execution in taking this once obsolete regional mall and reimagining it into a thriving class a power center,” said Alex Cocoziello, an Advance Realty principal and the firm’s chief investment officer. “From development through disposition, our teams dedication to effectuating the business plan remained diligent, resulting in new pillar for the community with a great roster of nationally branded tenants the citizens of Ledgewood and Morris County will enjoy for years to come.”

The Shops at Ledgewood Commons is set to serve as a vibrant commercial hub in Roxbury, reflecting Urban Edge's commitment to revitalizing and capitalizing on prime real estate opportunities in the region.