Phillips Edison–ARC REIT Buys 157 KSF Grocery-Anchored Center in Metro Cleveland
By Scott Baltic, Contributing Editor
Phillips Edison–ARC Shopping Center REIT Inc., of Cincinnati, has acquired Brook Park Plaza, a 157,000-square-foot shopping center anchored by a Giant Eagle grocery store in Brook Park, Ohio, a suburb of Cleveland for an aggregate price of , the REIT announced late last week.
Other tenants include Goodwill and Fresenius Medical Services, and the center overall is about 88 percent occupied. The anchor tenant is 82,000 square feet and includes a fuel station.
The purchaser is a public non-traded REIT that focuses on the acquisition and management of grocery-anchored neighborhood shopping centers, with a mix of national and regional retailers selling necessity-based goods and services, in strong demographic markets. It’s co-sponsored by Phillips Edison & Co. and AR Capital L.L.C.
The Brook Park Plaza purchase brings the company’s total portfolio to 22 properties, all retail, totaling nearly 2.2 million square feet and diversified across 13 states.
“The acquisition of Brook Park Plaza is consistent with our acquisition strategy of acquiring well-occupied grocery-anchored neighborhood and community shopping centers located in infill locations throughout the United States,” Derk Taylor, director/Midwest acquisitions for Phillips Edison & Co., told Commercial Property Executive.
The seller was Albrecht Inc., of Akron, Ohio, a regional owner and manager of northeastern Ohio commercial real estate, primarily retail properties.
“Neighborhood shopping centers are in high demand, given the fact that the healthiest shopping center category is the neighborhood, convenience-oriented center,” Jeff Green, of retail consultants Jeff Green Partners, Phoenix, told CPE.
“These centers are a hotter commodity than the regional mall or power/big box centers, both of which are somewhat vulnerable in this struggling economic time.”
“The neighborhood centers most in demand by investors are those with the strongest, highest-volume area supermarkets, as the grocery category is the least likely to be impacted by Internet shopping,” Green added. “And in this case Giant Eagle has the highest market share in metro Cleveland.”
In other Cleveland news, BGL Real Estate Advisors, a subsidiary of Brown Gibbons Lang & Co., and Cleveland real estate developer Scott Berkowitz broke ground on Monday, Oct. 15, on a luxury aloft hotel at the Chagrin Highlands corporate center in Beachwood. It will be the second aloft hotel in the Cleveland area. In May 2013, an aloft hotel is expected to open in Cleveland’s downtown.