Large retail properties in the Greater Cleveland area saw a lot of action in the final quarter of 2013. Devonshire REIT Inc. paid $8 million for the Great Lakes Plaza in Mentor, while Starwood Capital Group acquired two shopping centers in North Olmsted and Canton as part of a $1.6 billion, seven-property portfolio.
More recently, the North Olmsted Towne Center changed hands. Carnegie Management and Development Corp. sold the shopping center for $17.8 million, or $186 per square foot, to an out-of-state private investor. According to Marcus & Millichap Real Estate Investment Services’ Cleveland-area retail report for the third quarter, the lack of quality assets, particularly in the shopping center segment, kept the median price per square foot for multi-tenant properties 10 percent lower, at $38 per square foot, compared to the level at midyear.
The Towne Center is located in the center of North Olmsted’s commercial district, at 25100 Brookpark Road, about 17 miles southwest of Cleveland. It offers 95,446 square feet of retail space, with tenants such as David’s Bridal, The Tile Shop, Jimmy John’s, La-Z-Boy, Men’s Wearhouse, Moe’s Southwest Grill, Party City and Pearle Vision. The property is also shadow anchored by a Target and a Walmart Supercenter.
Marcus & Millichap arranged the sale. Scott Wiles and Craig Fuller, of its Cleveland office, and Erin Patton, of its Columbus office, represented the seller. Together with Dustin Javitch of the Cleveland office, they also advised the buyer.
“Multi-tenant property transaction velocity in the Cleveland metropolitan area has nearly doubled over the past four quarters as local investors became much more active in the market,” Wiles said in a statement for the press. “Well-located, high-quality centers such as the North Olmsted Towne Center attract attention from local investors and out-of-area buyers from throughout the investor spectrum.”Photo credits: Carnegie Management and Development Corp. Charts courtesy of Marcus & Millichap Real Estate Investment Services