Cole Acquires 270 KSF Retail Center in Michigan for $47M
- Mar 16, 2012
By Nicholas Ziegler, News Editor
Cole Real Estate Investments has made a $47 million pickup in Allen Park, Mich., located just south of Detroit. Fairlane Green, the 270,000-square-foot retail power center in the transaction, is 97 percent occupied.
Scott Holmes, a senior vice president of acquisitions with Cole, called the purchase “consistent with our disciplined investment strategy” and noted that his firm has been actively seeking to invest in the right multi-tenant retail properties. “Fairlane Green is near 100 percent occupancy, the majority of its tenants are well-known national retailers performing well above national averages and it is located at a prime retail location within the trade area,” he said.
Fairlane Green was built in 2005 and is home to retailers including TJ Maxx, Bed Bath & Beyond, and Old Navy, along with restaurants Chili’s and Longhorn Steakhouse. The location is also shadow-anchored by a neighboring Target. National retailers occupy 89 percent of the property.
While Detroit has been in the news for many of the wrong reasons lately, the statewide unemployment rate is actually heading in the right direction. In the fourth quarter of 2011, the jobless numbers sat at 9.8 percent, down from 10.6 percent in October, according to data released by the state of Michigan. The state’s monthly survey of major employers found that Michigan’s professional and business-services sector gained 1,000 positions in November, the fourth consecutive monthly gain. The survey also showed that the state added 59,000 payroll jobs in the previous 12 months, a 1.5 percent increase.
And with increases in employment levels, increased retail spend typically follows. Nationwide, net absorption has been positive in the nine quarters ending with the third quarter of 2011, according to a report by services firm Jones Lang LaSalle Inc. Starting in the third quarter of 2010, nearly 64 million square feet of retail space has been absorbed nationwide. However, the report noted, “rents still have not bottomed, with malls experiencing the greatest decline as their vacancies climb.”
Earlier this year, Cole spent $53 million on a 176,000-square foot class A office building in Parsippany, N.J. and, in January, the company took an interest of approximately 153,000 square feet of a 349,000-square-foot retail center in Cleveland, Tenn.