Press Releases by Verada Retail

Submission for REBNY’s Most Impactful Retail Deal of the Year

Written by Verada | Sep 26, 2024 4:15:09 PM

Fresh Food For All 

Revitalizing Ridgewood: The Transformative Met Fresh Supermarket Lease
By: Nathaniel Mallon & Brendan Thrapp

Opening Statement

The Met Fresh Supermarket lease at 67-09 Fresh Pond Road is a transformative and highly impactful retail transaction in Ridgewood, Queens. This 20-year lease agreement revitalizes a key retail space previously occupied by Capital One Bank and addresses a significant void in the local market by providing access to fresh produce and high-quality grocery options. The strategic location, innovative amenities, and substantial investment demonstrate a commitment to enhancing the community's economic vitality and quality of life.

This transaction is noteworthy for its creativity and the significant impact it will have on the local retail market. The Verada team, led by Nathaniel Mallon and Brendan Thrapp, exhibited exceptional ingenuity in negotiating favorable terms for both the tenant and the landlord. They successfully navigated a competitive and constricted market for grocery spaces, securing a prime location that enhances the neighborhood's retail landscape. The team’s innovative approach included unique features such as heated floors, extended operating hours, and community engagement initiatives, all designed to meet the evolving needs of a diverse urban population. This transaction exemplifies how thoughtful retail development can drive foot traffic, support local businesses, and significantly uplift a community, making it the most impactful retail deal of the year.

1. Scope of the Transaction

The transaction involved securing a 20-year lease for 14,000 square feet of retail space at 67-09 Fresh Pond Road, Ridgewood, Queens, for Met Fresh Supermarket. The stand-alone property is strategically located near the Fresh Pond Road stop of the M train and is adjacent to a competitor, Food Universe Marketplace. The asking rent was $65 per square foot.

This new location for Met Fresh opened on May 24, 2024, and features several innovative amenities that enhance the customer experience, including heated floors, a rear parking lot for customer convenience, and extended operating hours from 7 a.m. to 11 p.m. daily. These features are designed to provide a comfortable and accessible shopping experience for the local community.

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2. Creativity and Impact

This transaction is noteworthy for its creativity and the significant impact it will have on the local retail market. The Verada team of Nathaniel Mallon and Brendan Thrapp demonstrated exceptional ingenuity in negotiating favorable terms for both the tenant and the landlord. They successfully navigated a competitive and constricted market for grocery spaces, securing a prime location that enhances the neighborhood's retail landscape.

Co-Tenancy and Impact

The Fresh Pond Road corridor neighborhood retail includes numerous 99 Cent Stores, Discount Shops, Delis, and walk-in medical clinics. There was significant vacancy on the block at the time, as COVID-19 hit this working-class neighborhood particularly hard.

It is also important to note that finding large spaces for grocers is extremely difficult in New York right now, with new development construction being affected by high costs of capital, long delays on materials, lack of 421A tax abatement and still very high land costs.

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3. Benefit to New York City’s Retail Market

The opening of Met Fresh at this location benefits New York City by revitalizing a key retail space in Ridgewood, Queens. The supermarket's presence is expected to increase foot traffic, stimulate the local economy, and fill a void by providing residents with access to fresh produce and groceries in a community-centric location. The project also created construction jobs and will offer permanent employment opportunities, contributing to the overall economic health of the area.

Photo courtesy the office of Council Member Robert Holden

Additional Benefits:

  • Employment: The new Met Fresh location employs over 30 full and part-time workers, providing significant job opportunities for the local community.
  • Delivery Service: The supermarket has a robust delivery service, with hundreds of orders being delivered daily, further enhancing convenience for local residents.

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4. Demographics of the Area

The demographics of Ridgewood, Queens, where 67-09 Fresh Pond Road is located, are significant in understanding the potential customer base for Met Fresh:

  • Median Household Income: $65.8K, slightly below the New York City median, indicating a diverse socioeconomic customer base.
  • Educational Attainment: 29.6% of residents have a bachelor’s degree or higher.
  • Median Age: 33.4 years, suggesting a relatively young population.
  • Ethnicity: The area has a high percentage of Hispanic or Latino residents (42.8%), influencing the types of products stocked to cater to local preferences.
  • Persons per Household: 2.97, indicating a family-oriented community with a mix of single residents and families.

These demographics support the viability of a grocery store like Met Fresh, which can cater to the diverse needs of the community with its range of fresh produce, meats, and specialty items.

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5. Foot Traffic Impact of Capital One Bank

According to Placer.ai data, Capital One Bank at 67-09 Fresh Pond Road had substantial foot traffic, with 179,300 visits and 53,200 unique visitors annually from February 2019 to February 2020. This dropped to 99,500 visits and 38,400 unique visitors from May 2020 to April 2021, showing the impact of the COVID-19 pandemic. The average visit duration was 15-16 minutes, indicating a steady flow of customers throughout the day. The closure of Capital One Bank significantly reduced foot traffic, impacting nearby businesses that relied on these visitors for secondary sales.

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6. Impact of Met Fresh on Foot Traffic

The introduction of Met Fresh Supermarket is projected to significantly increase foot traffic compared to Capital One Bank. Grocery stores typically attract more frequent visits, with customers returning weekly or even daily for fresh items. Met Fresh, with its unique features like heated floors and extended hours, is expected to draw a diverse range of customers, from busy professionals to families. This increased traffic will benefit surrounding businesses, contributing to the economic vitality of the Fresh Pond Road corridor.

Additional Insight: The local Key Foods had 1.1 million visitors last year, and it is expected that Met Fresh will attract a similar or higher number of visitors, significantly boosting foot traffic in the area.

Quote from Danny Hamdan, Owner of Met Fresh:
"I am thrilled to open our new Met Fresh Supermarket in Ridgewood. Brendan Thrapp and Nathaniel Mallon from Verada Retail were exceptional partners throughout the process. Their expertise and dedication were instrumental in securing this prime location. We chose 67-09 Fresh Pond Road because it offers great accessibility for our customers and supports our vision of providing high-quality, fresh groceries to the community. We are excited to be part of the neighborhood and look forward to serving our customers here."

Quote from the CEO of Associated Supermarket Group, Zulema Wiscovitch:
"We are incredibly proud to support Danny Hamdan in the opening of the new Met Fresh Supermarket at 67-09 Fresh Pond Road. This exciting addition to Ridgewood fills a crucial void for fresh meats and produce, ensuring that residents have convenient access to high-quality and culturally relevant grocery options right in their neighborhood. The new store drives significant foot traffic to the Fresh Pond Road corridor, supporting nearby businesses and contributing to the economic vitality of the area. Repurposing the long-standing bank building into a modern supermarket is a big win for all. This new store not only aligns with our purpose to serve and support local communities but also represents a strategic expansion of our network. We anticipate that the Ridgewood location will become a central hub for residents, creating jobs and fostering economic growth. We look forward to continuing our tradition of excellence and community engagement with this new supermarket."

Quote from Brendan Thrapp, Verada:
"I first met Danny in mid-2017 while working on a Landlord rep assignment at 1381 Myrtle Ave. Danny was the same age as I and was looking for his first solo location, outside of his involvement running his family’s markets. We negotiated a lease that has since become a staple in a neighborhood that also had a big need for fresh produce and organic products at the time. It’s been a pleasure to see the growth of Danny’s business and be involved with securing locations that greatly benefit both our client and the neighborhood at large. Met Fresh on Fresh Pond Road fills a much-needed void in the market and will long be a neighborhood staple for years to come."

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7. Step-by-Step Process

Initial Involvement:

The process began with Julia Zoraian of the Verada Team identifying the opportunity to bring Met Fresh to Ridgewood, Queens. Verada Retail's deep market knowledge and strong relationship with Danny Hamdan, owner of Met Fresh, were crucial in this phase. Initial discussions centered around the potential of the Fresh Pond Road location and its strategic advantages.

Market Analysis and Strategy:

The team conducted thorough market research, leveraging tools like Esri Demographics and Placer.ai to identify the optimal site. They assessed the competitive landscape, pinpointing a location that would maximize visibility and accessibility while meeting the community's needs. The property, located at 67-09 Fresh Pond Road, was recently sold in a closed transaction for $4,650,000 on 08/12/2022. It has a total area of 11,780 above grade.

Negotiation and Lease Terms:

Verada Retail navigated complex negotiations, balancing the needs of Met Fresh and YYY Realty. They secured a 20-year lease at a competitive rate considering the location's potential. The negotiation process included addressing specific requirements such as heated floors and extended operating hours, which added value to the lease agreement.

Finalization and Execution:

The deal was finalized with meticulous attention to detail, ensuring all legal and regulatory requirements were met. The team oversaw the gut renovation of the property, transforming it into a modern retail space. This included managing the construction process, coordinating with contractors, and ensuring timely completion of the project.

Additional Details:

  • We sent over a survey of potential sites where there was a void in the neighborhood. Fresh Pond stuck out because it was the optimal size, easily accessible to transportation, and in a neighborhood where there are a lot of families with a void of fresh produce options.
  • We reached out to KSR’s Marc Sitt and Dorel Melloulto to set up a viewing as they had the property listed on Costar. Once we set up a viewing, we met with the Owner (Tenny) alone, walked the property, and discussed the structure of a deal.
  • We submitted an offer shortly thereafter and learned that the partner KSR was representing sold his interest in the building in August of 2022.
  • When we first met on-site, there was discussion and general understanding about leasing the whole building, including the 2nd floor with the ground floor and basement. The broker was unaware of this conversation, which led to confusion and ultimately an all-hands-on-deck meeting consisting of Danny, Tenny, and his wife.
  • Tenny and his wife own a home appliance business located on the Bowery and are recently retired. They purchased the building, all cash, as part of their retirement plan. During the meeting, it was explained that this was their retirement plan and they wanted Danny to assume the 2nd floor for a heavily discounted price and sublease it to a separate use or include it in his plans.
  • There was a handshake deal made in person, and shortly after, the lawyers drew it up, and we signed a lease for the entire property and parking lot. We assumed and gut renovated the 2nd floor in addition to the market.

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8. Additional Noteworthy Facts

  • Community Engagement: The grand opening on May 24th drew significant community support, including local residents and Council Member Robert Holden, who helped cut the ribbon and expressed his support on social media. The neighborhood's warm welcome and the store’s community-centric approach were highlighted by local press.
  • Sustainability Initiatives: The renovation included energy-efficient installations and sustainable building practices, aligning with New York City's green building goals. These initiatives not only reduce the environmental impact but also contribute to long-term operational savings.
  • Local Press Coverage: The transaction received extensive coverage in local media, highlighting its significance to the community. According to QNS, the community's response to Met Fresh's opening was overwhelmingly positive, with residents expressing excitement about the new supermarket's amenities and convenience. Abasto also covered the expansion, emphasizing the strategic importance of the Ridgewood location for Met Fresh's growth.

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9. Comparisons with Past Winners

  • Community-Centric Focus: Like the 2019 award-winning deal by TF Cornerstone and Urban Space for Dekalb Market Hall, which transformed the basement of City Point into a bustling food hall, the Met Fresh deal focuses on community engagement and local impact by providing fresh produce and essential groceries to Ridgewood residents. Dekalb Market Hall Transformation
  • Economic Revitalization: Similar to the 2018 Target deal at Essex Crossing, which played a crucial role in revitalizing the Lower East Side, Met Fresh's new location is expected to enhance the retail landscape of Ridgewood, providing economic benefits and increased foot traffic by filling a void in the market for fresh groceries. Target at Essex Crossing

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10. Timeline

  • Capital One Bank Closure: The Capital One Bank branch at 67-09 Fresh Pond Road closed several months before the Fresh Pond Road Chamber of Commerce was revived.
  • Chamber of Commerce Revival: The Fresh Pond Road Chamber of Commerce was revived in January of 2021 with the involvement of local business leaders, including the Chamber President and his brother Chris who work across the street from the new Met Fresh.
  • Listing and Vacancy: The property was listed for sale for two years and remained vacant before the lease was signed in the fall of the previous year.
  • Employment and Operations: Since its opening, the Met Fresh Supermarket has employed over 35 full and part-time employees, operating 7 days a week. The store also has a large delivery business, with hundreds of deliveries going out per week in the first month of operation.

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11. Conclusion

The Met Fresh Supermarket lease at 67-09 Fresh Pond Road exemplifies a transformative retail deal that revitalizes a key neighborhood space, supports the local economy, and enhances community services. This transaction stands out for its creativity, significant impact, and alignment with the mission of Associated Food Holdings to serve and support local communities.

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Appendix

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About ASG:

Associated Supermarket Group provides retail solutions to independently owned grocery stores in the Northeast and Mid-Atlantic regions, providing distribution, marketing, merchandising, promotional services, and store financing. A relationship with ASG allows independently owned and operated stores to take advantage of the economies of scale normally available only to larger supermarket chains. ASG’s supermarket banners include Associated, Associated Fresh, Compare, Compare Fresh, Met Foods, Met Fresh, Metropolitan City Market, Pioneer, and other independently named stores.

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Winners of the 2023 Retail Deal of the Year:

The Most Ingenious Retail Deal of the Year Award was given to Brian Katz and Daniel D. DePasquale of Katz & Associates for their 129,000-square-foot lease of Floor & Décor’s first flagship store at 850 Third Avenue in Brooklyn.

The Most Impactful Retail Deal of the Year Award was given to Alan Schmerzler and Sean Moran of Cushman & Wakefield and Stephen C. Sjurset and Duane Davis of CBRE for their transaction on behalf of tenant LIDL and owner MAG Partners at 335 Eighth Avenue in Manhattan.

The REBNY Retail Development/Project of the Year Award, which recognizes the developers, architects, general contractors and consultants who facilitated development of the most impactful and unique retail-focused development in New York City, was given to Peter Marino of Peter Marino Architect for the redesign of Tiffany & Co’s Landmark Fifth Avenue Flagship.
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