Marcus & Millichap (NYSE:MMI) today announced its Institutional Property
Advisors (IPA) division has arranged the sale of a two-property,
193,633-square-foot Giant-Eagle-anchored shopping center portfolio in
Northeast Ohio. The $27.75 million sales price equates to $143 per
square foot. The portfolio is comprised of the Amherst Marketplace and
Sheffield Crossing shopping centers.
“This was a very complex loan assumption process where the buyer took on
debt that is due in 2018 at what is now an above market interest rate of
6.0%,” says Craig Fuller, IPA senior director. “The properties commanded
multiple offers due to the high demand for quality grocery anchored
shopping center assets. Giant Eagle is the dominant grocer in the
Northeast Ohio market with reported sales in excess of $9 billion
annually.”
“Giant Eagle—the largest tenant in the offering—accounts for 77 percent
of the portfolio’s in-place income,” adds Scott Wiles, IPA senior
director. “With the grocers’ leases extended, the property provides the
new owner a stable asset with opportunities to achieve additional value
through scheduled rent increases, and projected regional growth.”
Amherst Marketplace is located at 2201 Kresge Drive in Amherst, Ohio.
The property’s tenants include Giant Eagle, Monster Tan and Best Cuts.
Sheffield Crossing is located 5231 Detroit Road in Sheffield Village,
Ohio. The property’s tenants include Giant Eagle, Cracker Barrel, SVS
Vision Holding, Arby’s, Verizon Wireless and BP Exploration & Oil. Major
employers in the area include the Cleveland Clinic, Nordstrom, Oberlin
College, Parker Hannifin, the Sheffield-Sheffield Lake city schools and
the Amherst local schools.
A brokerage team made up of IPA senior directors Craig Fuller, Scott
Wiles and Erin Patton, and Marcus & Millichap vice president investments
Seth Richard and Laurie Ann “L.A.” Drinkwater, represented the seller
and procured the buyer. Michael Glass, first vice president and regional
manager, was the firm’s broker of record for the transaction.
About Marcus & Millichap (NYSE:MMI)
With over 1,500 investment professionals located throughout the
United States and Canada, Marcus & Millichap is a leading specialist in
commercial real estate investment sales, financing, research and
advisory services. Founded in 1971, the firm closed over 7,600
transactions in 2014 with a value of approximately $33.1 billion. The
company has perfected a powerful system for marketing properties that
combines investment specialization, local market expertise, the
industry’s most comprehensive research, state-of-the-art technology, and
relationships with the largest pool of qualified investors. To learn
more, please visit: www.MarcusMillichap.com
About Institutional Property Advisors (IPA)
With a network of senior-level investment advisors located throughout
the United States, Institutional Property Advisors (IPA) is qualified to
meet the needs of institutional and major private investors. IPA’s
combination of real estate investment and capital markets expertise,
industry-leading technology, superior support services and acclaimed
research offer customized solutions for the acquisition and disposition
of institutional properties and portfolios. www.IPAusa.com
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