Cincinnati-based Phillips Edison & Co., a fully integrated retail real estate company, is the new owner of Parmatown Mall, one of the largest retail properties in Northeast Ohio. The terms of the deal that closed on Oct. 16 have not been revealed.
Parmatown is a 1.2 million-square-foot, mixed-use complex. It was built in 1955 and renovated and expanded in 1985, 2004 and 2005. The property occupies 83 acres and is located at the corner of Ridgewood Road and State Route 3 in Parma, Ohio, approximately eight miles from Downtown Cleveland. A court-appointed receiver has been managing the complex since July 2011, after the original owners defaulted on the mortgage.
The complex has three components:
- Parmatown Plaza
- Parmatown Strip Center
- Parmatown Medical Center
Parmatown Plaza is an enclosed, single-story, regional shopping mall anchored by JCPenney, Dick’s Sporting Goods and Walmart. A Marc’s Grocery Store anchors Parmatown Strip Center, a neighborhood retail center, while the Parmatown Medical Center is a four-story medical office building.
Roy Williams, vice president of Phillips Edison’s Strategic Investment Fund, said in a news release that “Phillips Edison has been in the business of redeveloping retail properties for over 20 years. Parmatown represents an ideal opportunity to apply our expertise and revitalize this historic property to its full potential. Now that the acquisition process has been concluded, we will focus our efforts on a comprehensive strategy that will rejuvenate this key component of Parma’s commercial center.” Parma Mayor Tim DeGeeter also believes that Phillips Edison’s acquisition of Parmatown Mall will lead to an improved quality of life for Parma residents.
Phillips Edison owns and manages 225 shopping centers in 25 states. Parmatown is the fourth purchase for Strategic Investment Fund II. The Cincinnati-based company established the fund in 2011 after its Strategic Investment Fund I was fully invested. In a separate transaction, the company purchased the mall’s empty Macy’s building, along with some small-shop space and parking areas owned by Macy’s. The store closed earlier this year.
Photo credits: www.parmatown.com.
Charts courtesy of Marcus&Millichap.