Deptford Best Buy
In early 2022, a Next Realty, LLC affiliate completed the sale of a single-tenant, net-leased Best Buy store at 1851 Deptford Center Road in Deptford, NJ. Next acquired the asset, in an irreplaceable, regional location, in 2001. Best Buy has leased the property since 1995.
The 60,759-square-foot property was one of the first acquisitions for the Next team in 2001. Over the years, Next worked hand in hand with Best Buy to make it one of the most successful stores in the Philadelphia region. Leveraging that history of success, Next was able to negotiate a 10-year lease renewal with Best Buy.
The Deptford Best Buy holds a special place for Next and its early investors. Upon acquisition, Next combined the ownership of the ground lease with that of the building thus creating the current fee simple ownership structure. After successfully negotiating a long-term lease extension with Best Buy, Next determined it was an optimal time to market the property for sale to close out the partnership and provide a significant and final return to investors.
The combination of the recent lease renewal and strong real estate fundamentals created an attractive opportunity for investors looking for a standalone $15M – $20M asset. The great combination of credit quality, location and market conditions allowed Next to achieve a market-leading cap rate for a free-standing, 60,000-plus square-foot Best Buy.