YPSILANTI, MI—Namdar Realty Group has just completed the acquisition of the Gault Village Marketplace shopping center in Ypsilanti, MI, about 30 miles southwest of Detroit. The Great Neck, NY-based investment and management firm is currently on a shopping spree due to the recent increase in interest rates, which benefits all-cash buyers like Namdar, and looking at a number of similar properties across the US.

Joel J. Gorjian, vice president of acquisitions and dispositions, and Namdar focus on acquisitions in the secondary and tertiary markets, because retail properties in these locations face less competition from other retailers and shopping centers. "This strategy benefits both the properties we own and operate, and our retail tenants, who also face less competition," Gorjian tells GlobeSt.com. "By operating properties in less saturated markets, it is easier for us to develop and maintain customer loyalty."

"The 160,500-sq.-ft. Gault Village Marketplace was an attractive acquisition target and fit well into our portfolio due to its redevelopment and repositioning potential as well as a high capitalization rate," adds Gorjian. "We are planning to upgrade the property and target new tenants, including both national and regional retailers that cater to the needs of the local demographics."

The one-story shopping center is located a short distance from both the University of Michigan and Eastern Michigan University campuses. Current tenants include Family Dollar, Advance America, Measurement Incorporated, New Image Beauty, a China One restaurant, and Gault Village Cleaners. Located at 1005-1075 Emerick St., the property sits on a 13.2-acre lot and features 1,815 linear feet of frontage and 1,200 parking spaces. The center is within a retail corridor that serves about 66,000 people residing within a three-mile radius.

"The recent increase of the federal funds rate creates buying opportunities for long-term investor/operators such as Namdar by reducing demand and lowering the cost of commercial real estate," says Gorjian. "We are currently negotiating nine acquisitions nationwide, including two in Michigan, and are looking for additional acquisition opportunities. Our focus is on underperforming properties with high cap rates negotiated through off-market deals."

Namdar owns and operates more than 20 million square feet of commercial real estate nationwide. It's portfolio includes more than 100 retail centers, medical buildings, and office properties.