Listen to this articleFollowing Flagstar Bank’s plans to close about 60 branches in 2025, Cushman & Wakefield has successfully offloaded another package of properties for the financial institution.
CushWake announced arranging the sale of the seven-site portfolio Nov. 3. A private buyer paid $4.4 million to acquire the former branch locations, according to the commercial real estate services firm.
In May, Cushman & Wakefield brokered deals for six vacant Flagstar locations for a total $5.7 million. The same team comprising Managing Director Andrew Schwartz, Director Jordan Sobel, Senior Associate André Balthazard and Associate Dan Bottiglieri handled that and the latest sales.
The properties range in size from 755 square feet to 3,306 square feet located throughout Essex, Hudson and Union counties:
- 36 Ferry St., Newark
- 198 Jefferson St., Newark
- 155 Central Ave., East Newark
- 2624 Morris Ave., Union
- 1887 Morris Ave., Union
- 23 Little Falls Road, Fairfield
- 949 Broadway, Bayonne
Several sites feature drive-thru capabilities, on-site parking and strong visibility along major thoroughfares, Cushman & Wakefield said.
“This transaction represents a compelling adaptive reuse opportunity for well-located retail banking assets across established New Jersey submarkets,” Sobel said. “The buyer recognized the portfolio’s potential to reposition these sites for a variety of uses across the region’s dense, high-traffic communities.”
The firm noted one Newark location (198 Jefferson) also includes two vacant residential units situated above the retail space. It highlighted “substantial parking capacity” in Union, including with direct frontage on Morris Avenue. In Fairfield, the spot offers direct access to Route 46.
According to its website, Flagstar Bank has more than 30 New Jersey locations.
Cushman & Wakefield said the sale reflects persistent banking sector trends as financial institutions optimize, consolidate and rethink their physical footprints. Last December, American Banker noted the 439 branch closures recorded in the third quarter 2024 marked the highest level of net closings since Q1 2022. As for what’s driving the change? The publication noted investments in digital banking, due to changing consumer preferences and behavior.
It also noted that, in recent years, shuttering stores has “proven integral to deal-related cost cutting.” Last month, bank M&A activity hit a four-year high, according to S&P Global, amid what expects to be a record-making year for combinations.
