Home » NEWS » Banking & Finance » (UPDATED) Ohio shopping center company buys Lakeland Commons
Ohio shopping center company buys Lakeland Commons

(UPDATED) Ohio shopping center company buys Lakeland Commons

 

By TED CARTER

A Beachwood, Ohio shopping center company is the new owner of Lakeland Commons, a fully occupied 460,000 square-foot retail center in the heart of Flowood’s thriving retail corridor along Lakeland Drive.

The acquisition is the first in Mississippi for Chase Properties Ltd., which has retail centers in the Midwest, and the Southern and Eastern United States.

Chase Properties paid in the $35 million range in the transaction with seller Covington Realty Partners, a Chicago investment group, said Andy Kline, Chase’s  principal and managing director.

“We’re excited about expanding our footprint to Mississippi,” Kline said in an interview Tuesday.

Stores anchoring the center situated between Flowood Drive and Lakeland Drive are Hobby Lobby, Ross Dress for Less, Babies R Us, Shoe Station and Party City. The property is shadow-anchored by Kohl’s Department Store and Lowe’s Home Improvement Store  A shadow anchor is a big retailer located close enough to drive spillover traffic to neighboring centers.

Kohl’s and Lowe’s are situated in Lakeland Commons but are separately owned, according to Kline. “They draw a lot of shoppers to the center,” he said. “That is just a very strong tenant mix.”

The center’s location in a retail district that consists of many high-performing national tenants drew the company’s attention, Kline said, citing the four “dominant” retail centers, including Lakeland Commons, that occupy each corner of the Lakeland Drive and Old Fannin Road intersection.

“We like to own what we think of as the best shopping centers in the market. This location at the intersection was ideal,” he added.

Kline said the acquisition is part of a strategy of expanding geographically by acquiring high quality shopping centers in secondary and tertiary markets.

That strategy is “perfectly represented” by the purchase of Lakeland Commons, he said.

Kline said no immediate changes are planned for the 10-year-old Lakeland Commons. “We view it as a great piece of real estate that we plan to hold for the long term,” he said. “Our strategy is to buy the type quality of retail center we believe will be stable over time.”

The Chase Properties chief said it is difficult to determine lease rates going forward. “Different size units and different locations are going to demand different rents.”

Chase Properties owns and manages 31 shopping centers composed of over 7 million square feet.

CBRE’s Atlanta office brokered the sale.

Lakeland Commons is the second metro Jackson retail center to recently change hands. Simon Property Group earlier this month sold Northpark Mall, a fixture on County Line Road since 1984, to Pacific Retail Capital Partners of El Segundo, California.

The transaction also included the Galleria in White Plains, New York; and the Esplanade in Kenner, Louisiana, according to a release from Pacific Retail.

The privately owned Pacific Retail Capital Partners declined to give a purchase price for the 958,000-square-foot mall, which is on the Ridgeland side of the mile-long retail corridor. However, Pacific Retail Marketing Vice President Najla Kayyem said in a telephone interview that the three properties appraise for more than $200 million.

Northpark has retailers such as Dillard’s, Belk, JCPenney, H&M, Victoria’s Secret, Footlocker and Sephora.

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