Troubled Cleveland Shopping Center Going to Internet Auction
- Sep 30, 2013
The Horseshoe Cleveland Casino, the Cleveland Convention Center and other important projects are expected to boost tourism and attract more people to the city, all to the benefit of local retailers. Marcus & Millichap reported that sales of retail assets will grow through the remainder of the year, as an increasing number of out-of-state investors are looking to acquire properties in the metro area, especially in University Heights, Beachwood, Shaker Heights and Rocky River.
In the face of this, Retail Properties of America (formerly Inland Western Retail Real Estate Trust) is trying to unload a five-story shopping center in University Heights. The Chicago-based REIT, one of the largest owners and operators of shopping centers in the United States, listed the property for sale on Auction.com. It acquired the retail center in 2005 for $55 million.
University Square was constructed in 2003. It is a 287,000-square-foot shopping center located on 15.43 acres of land at Cedar Road and Warrensville Center Road, about 10 miles from downtown Cleveland. The retail center is shadow anchored by Target and Macy’s and is served by a five-story, 2,300-space, city-owned parking garage.
According to Auction.com, the property is only about 26.5 percent occupied. Bidding will start on Oct. 8 and will end on Oct. 10. There is no starting bid, but the minimum bid deposit amount is $50,000. The attached Target and Macy’s stores are not included in the sale, as they are owned by the retailers themselves. University Square will be sold to the highest bidder regardless of price. Ryan Fisher and Chris Prosser of Colliers International are marketing the property.Photo credits: Google Maps. Charts courtesy of Marcus & Millichap.