(For more retail coverage, click GlobeSt.com/RETAIL.)
(For more retail coverage, click GlobeSt.com/RETAIL.)
CLEVELAND-The sales of two suburban power centers--City View Center and Highland Plaza--are scheduled to close in mid-December. City View Center, a 491,341-sf property in Garfield Heights, is being sold to a New York investor for approximately $100 million, or $204 per sf. Meanwhile, a local buyer has agreed to pay $40 million, or $162 per sf, for Highland Plaza, a 247,000-sf property in Highland Heights. Both deals are under contract, according to Tony Sekulovski of the Sekulovski & Luttner Group of Marcus & Millichap in Chicago.
"The Ohio market is booming as far as multi-tenant retail," says Sekulovski, who has been marketing both properties with Mark Luttner. He explains that a lot of money is being "parked in the Midwest" by baby boomers who have made money investing in the West.
The 491,341-sf City View Center is a new center that was developed by McGill Property Group on a former landfill site 10 miles from Downtown Cleveland. Wal-Mart and Giant Eagle, two of the project's main anchors, have leases that run through 2026. The earliest expiration on other mid-size units is 2016, according to the Sekulovski & Luttner Group. Other tenants include Circuit City, Office Max, Bed, Bath & Beyond, Jo Ann Fabrics and Dick's Sporting Goods. The project, which was opened in 2006, has been hindered by environmental issues.
Sekulovski says that Highland Plaza drew three or four full-price offers. Located off Interstate 271 at 6199 Wilson Mills Rd., the 247,000-sf power center was built in the late 1970s and redeveloped in 1995. Anchor tenant Home Depot's 109,800-sf lease expires in 2020. More than 10 years remain on leases for an 80,371-sf Kohl's and a 56,975-sf Dick's Sporting Goods. The seller, a Cleveland-based private investment group, has owned the property for about six years.
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