Giant Eagle’s building on Kresge Drive in Amherst has been snatched up in a $27.75 million sale.
Marcus & Millichap, a California-based real estate brokerage firm, announced this past week that it arranged the sale of both the Amherst Marketplace and Sheffield Crossing.
The properties total 193,633 square feet and both are anchored by Giant Eagle stores.
The Amherst shopping center also includes Monster Tan and Best Cuts. The Sheffield location features Cracker Barrel, SVS Vision Holding, Arby’s, Verizon Wireless, and BP.
“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,” said a release from Marcus & Millichap.
Lorain County property records show the Amherst property changing hands Dec. 23 for $11.65 million.
What is less clear who the new owners are — documents show Amherst Marketplace Station LLC, a Delaware-incorporated company formed Nov. 17 with headquarters in Cincinnati.
The only individual name appearing on state filings is Barbara Hood, the authorized representative of CT Corporation System in Cleveland, an incorporation agent.
“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 percent,” said Marcus & Millichap Institutional Property Advisors senior director Craig Fuller. “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,” added 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.”
The last time the Giant Eagle plaza building sold was in 2007, when Ridge Bowman LLC purchased it from Acadia Amherst LCC for $11.4 million.