Regions Midwest | Detroit
Nov 19, 2007
By: Barbra Murray, Contributing Editor
Oakland Mall, a 1.5 million-square-foot shopping center in Troy, Mich., has just come under the ownership of Urban Retail Properties L.L.C., marking the Chicago-based company's return to real estate acquisitions. Urban Retail had been focusing solely on providing property leasing and management services for the last five years.
Located about 15 miles outside of Detroit, Oakland Mall is anchored by Macy's, JCPenney and Sears, and has a tenant roster that includes an additional 125 retailers. Urban Retail acquired the property from the trust of the Kogan family, which developed the mall nearly 40 years ago. "The upside in merchandising and the pricing of the mall were attractive to us," Urban Retail CEO Ross Glickman told CPN. "We will expand it, we will do some cosmetic refurbishments, but most important we will remerchandise it. It's already good but with some tender loving care, it will be terrific."
The purchase of the shopping center marks Urban Retail's first acquisition since 2002. That year, Rodamco North America sold Urban Retail to a partnership consisting of Rouse, which was later merged into General Growth Properties, Simon Property Group and Westfield Group. In 2005, however, Urban Retail went independent again in a management buyout and later joined forces with Principal Financial Group to help facilitate its return to the acquisition and development of retail properties. The company had been known as a leading developer of premier shopping centers, having built such well known retail destinations as Chicago's 900 North Michigan Avenue and Water Tower Place, and Boston's Copley Place.
Metropolitan Detroit is a reasonable market for the company to enter. Despite the devastating hit the local economy has suffered with the substantial loss of automotive industry jobs, retail properties, according to a report by real estate investment brokerage firm Marcus & Millichap, still offer stability. "Detroit as a metro market has gotten a lot of unfavorable publicity, which is more perception than reality," Glickman said. Current activity among other companies involved in real estate endeavors supports Glickman's premise. Next year, Global investment management firm BlackRock plans to commence development of the Pavilions of Troy, a mixed-use project at the site of the former K-Mart Corp. world headquarters in Troy that will include 500,000 square feet of retail and restaurant space. And Taubman Centers Inc. just completed Clinton Township's Mall at Partridge Creek, which added 640,000 square feet of retail to the Metropolitan Detroit market. "We don't think Detroit is a bad investment at all."
Urban Retail is just getting started. The company is looking at markets across the country for acquisitions and developments, while keeping a particularly close eye on Arizona, Florida, Texas and the Northeast. Locales beyond domestic boarders are fair game, too, for acquisitions and ground-up developments. "We have an office in Shanghai and we're going into Dubai," Glickman noted. "We've been outside the U.S. for 25 years and we're enhancing our presentation abroad dramatically."
A privately-held independent company, Urban Retail is a leading third-party real estate manager, with over 40 million square feet of retail, office and residential properties in 21 states and the District of Columbia under its management. The company also provides consulting services around the world, and has developed more than 75 projects in its 30-year-old history.
By: Barbra Murray, Contributing Editor
Oakland Mall, a 1.5 million-square-foot shopping center in Troy, Mich., has just come under the ownership of Urban Retail Properties L.L.C., marking the Chicago-based company's return to real estate acquisitions. Urban Retail had been focusing solely on providing property leasing and management services for the last five years. Located about 15 miles outside of Detroit, Oakland Mall is anchored by Macy's, JCPenney and Sears, and has a tenant roster that includes an additional 125 retailers. Urban Retail acquired the property from the trust of the Kogan family, which developed the mall nearly 40 years ago. "The upside in merchandising and the pricing of the mall were attractive to us," Urban Retail CEO Ross Glickman told CPN. "We will expand it, we will do some cosmetic refurbishments, but most important we will remerchandise it. It's already good but with some tender loving care, it will be terrific."
The purchase of the shopping center marks Urban Retail's first acquisition since 2002. That year, Rodamco North America sold Urban Retail to a partnership consisting of Rouse, which was later merged into General Growth Properties, Simon Property Group and Westfield Group. In 2005, however, Urban Retail went independent again in a management buyout and later joined forces with Principal Financial Group to help facilitate its return to the acquisition and development of retail properties. The company had been known as a leading developer of premier shopping centers, having built such well known retail destinations as Chicago's 900 North Michigan Avenue and Water Tower Place, and Boston's Copley Place.
Metropolitan Detroit is a reasonable market for the company to enter. Despite the devastating hit the local economy has suffered with the substantial loss of automotive industry jobs, retail properties, according to a report by real estate investment brokerage firm Marcus & Millichap, still offer stability. "Detroit as a metro market has gotten a lot of unfavorable publicity, which is more perception than reality," Glickman said. Current activity among other companies involved in real estate endeavors supports Glickman's premise. Next year, Global investment management firm BlackRock plans to commence development of the Pavilions of Troy, a mixed-use project at the site of the former K-Mart Corp. world headquarters in Troy that will include 500,000 square feet of retail and restaurant space. And Taubman Centers Inc. just completed Clinton Township's Mall at Partridge Creek, which added 640,000 square feet of retail to the Metropolitan Detroit market. "We don't think Detroit is a bad investment at all."
Urban Retail is just getting started. The company is looking at markets across the country for acquisitions and developments, while keeping a particularly close eye on Arizona, Florida, Texas and the Northeast. Locales beyond domestic boarders are fair game, too, for acquisitions and ground-up developments. "We have an office in Shanghai and we're going into Dubai," Glickman noted. "We've been outside the U.S. for 25 years and we're enhancing our presentation abroad dramatically."
A privately-held independent company, Urban Retail is a leading third-party real estate manager, with over 40 million square feet of retail, office and residential properties in 21 states and the District of Columbia under its management. The company also provides consulting services around the world, and has developed more than 75 projects in its 30-year-old history.
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