Long Island Whole Foods retail building sells for $65.25M

NEW YORK, N.Y., May 10, 2022 – JLL Capital Markets announced today that it has closed the $65.25 million sale of Whole Foods at Westbury, a 55,109-square-foot, Whole Foods Market-anchored shopping center located in the affluent suburban Long Island community of Garden City, New York.

JLL marketed the property on behalf of the seller, Midwood Investment & Development. A private family investment firm acquired the asset.   

Whole Foods recently executed a 20-year lease for the building, which opened in 2020, and has since welcomed 1.17 million visitors, making it the most visited Whole Foods on Long Island. According to Placer.ai, the store ranks in the 94th percentile among all grocery stores in the U.S. The property is at 857 East Gate Blvd. and includes a 4,818-square-foot, freestanding pad space fully occupied by HSBC Bank and Bond Vet, and the center provides ample parking.

The JLL Capital Markets team representing the seller was led by Senior Managing Directors James Galbally, Chris Angelone, Jose Cruz, Christopher Munley and Andrew Scandalios; Senior Director Colin Behr; and Director J.B. Bruno.

“Throughout JLL’s marketing process, Whole Food Westbury attracted interest from the most aggressive international and domestic institutional, REIT and private capital due to its infill location, dominant anchor in Whole Food and long lease term,” Galbally said.

“Overall, retail in the suburban New York area continues to attract investors, given the lack of opportunities available and upside in the tenant rents,” Cruz added.

“It is extremely rare to have assets of this profile come to market, specifically in Long Island, and the resulting demand and best-of-the-best pricing achieved reflected that scarcity premium,” Munley said.

JLL Research’s recently released Grocery Tracker 2022 report tracked the fastest-growing grocers in the U.S., with Whole Foods ranking within the top 10 fastest growing grocery store chains in 2021. The report also details grocery-anchored retail posted the second-highest level of activity recorded for property transactions, with trades toppling $13.3 billion.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Founded in Midwood, Brooklyn, by Samuel Lemberg, Midwood Investment & Development has grown and evolved with New York City for over 90 ninety years. Today, the company is a sophisticated vertically integrated investment, development and management platform that owns over 130 properties across the U.S. and has several million square feet in its development pipeline.

At the intersection of architecture, urbanism, technology, and data, Midwood’s mission is to acquire, develop, and manage best-in-class mixed-use commercial and residential properties that improve neighborhoods and enrich lives.