FARMINGTON HILLS, MI—In the past few years, retail has not, in general, attracted as much interest from investors as other sectors like multifamily and industrial. However, investors have maintained an interest in well-leased retail properties in affluent neighborhoods, even outside core cities. The Ramco-Gershenson Properties Trust, for example, just acquired Deerfield Towne Center in Mason, Ohio, a high-income Cincinnati suburb, for $97 million. The company financed the acquisition with $52 million in cash, $25 million of new unsecured term debt due in 2020, and $20 million in borrowings under its revolving line of credit.
One of only two Whole Foods serving the Cincinnati area anchors the 461,000-square-foot shopping center. Other retailers include Bed, Bath & Beyond, Dick's Sporting Goods, buybuy BABY, Ashley Furniture, and a 16-screen Regal Cinema. Company officials believe the center's anchor tenants, upscale tenant mix, entertainment options, and restaurant choices make it the dominant shopping destination in the area.
"Deerfield Towne Center is a terrific complement to our high-quality, multi-anchored shopping center portfolio,” says Dennis Gershenson, president and CEO. “The center's strong tenant line-up and superlative mix of community and lifestyle retailers provides a solid foundation for future NOI growth. The shopping center is 92% leased. Opportunities to add value include a vacant 21,000-square-foot anchor box, additional small shop vacancies, and potential out parcel development."
The center, which was built in 2004, sits on the Mason-Montgomery Rd., one mile north of I-71 and about 20 miles from downtown Cincinnati. The shopping center serves a trade area with an average household income of $99,000 and a population of 225,000. Proctor and Gamble, the largest employer in Mason, has its 1.15-million-square-foot campus directly across from the shopping center.
With the acquisition of the Deerfield Towne Center, the trust has acquired 17 shopping centers totaling 3.6-million-square-feet for $567 million during 2013.
"Cincinnati/Mason is a robust market where we expect to see continued strong growth in population and business over the next several years,” adds Gershenson. “Combined with our Columbus properties, Deerfield Town Center provides a substantial foothold in a very attractive market."
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
