Marcus & Millichap Negotiates $31M Sale of Northland Center in Southfield, MI

The company also secures listing for Chestnut Ridge apartments in Pittsubrgh, PA

SOUTHFIELD, MI– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of 663,000 square feet of the Northland Center, (top right photo) a 1.7 million-square foot enclosed mall in Southfield. The sales price was $31 million.

Mark Taylor, (top left photo) vice president investments, and Dean Zang,(middle right photo) associate vice president investments, in the Philadelphia office of Marcus & Millichap, represented the seller, Jager Management Inc. of Jenkintown, Pa.

Taylor and Zang also procured the buyer, New York City-based Ashkenazy Acquisition Corp.

Mike Dillon, a vice president investments in the Chicago office of Marcus & Millichap, and Steve Chaben, (middle left photo) first vice president and regional manager of the firm’s Detroit office, also assisted in closing this transaction.

”This transaction presented numerous challenges that Dean and I were able to resolve because of the high level of cooperation – and patience – exerted by both the buyer and seller,” said Taylor.

“Some of the challenges we worked to overcome included the assumption of a loan in this very difficult capital markets environment and the erosion in the property’s rent roll.

“We went under contract in July and the global financial crisis intensified in September. During the entire transaction process, we faced daily negative press reports on the state of the commercial real estate sector and lending market, as retail property values continued to fall nationwide,” Taylor says.

Developed in 1954, Northland Center at 21500 Northwestern Highway is a retail destination for Detroit residents.

Co-anchored by Macy’s and Target, other retailers currently occupying the 120-acre mall include Champs Sports, Coffee Beanery, Lens Crafters, Lady Footlocker, Payless ShoeSource, Stride Rite, Carlton Cards & Gifts and others.

Marcus & Millichap sold a portion of the property, but did not sell the space occupied by Macy’s and Target.

“As the retail sector continues to face losses due to a downturn in consumer spending, landlords across the nation have encountered some significant leasing issues,” says Zang. “The new owner plans to make significant capital improvements to the mall. A major repositioning and changes to the tenant mix should assist in turning this property around.”

At the time of closing, Northland Center’s occupancy rate was 70 percent.

“Closing this sale at the height of the global financial crisis is a testament to the perseverance and excellent brokerage skills of our investment specialists,” explains Spencer Yablon, (middle right photo, under Dean Zang photo)) regional manager of the Philadelphia office of Marcus & Millichap.

Marcus and Millichap has obtained the exclusive listing for Chestnut Ridge (bottom left photo), a 468-unit apartment community in Pittsburgh. The listing price is $32 million. The 359,760-square foot Chestnut Ridge complex has 31 apartment buildings located on 25 acres of professionally maturely landscaped grounds.

Located in Robinson Township, one of the fastest-growing communities in Pittsburgh, the 468-unit property consists of five different one- and two-bedroom layouts designed to attract a variety of renters.

The property is also located in the prominent Montour School District.

Press Contact: Stacey CorsoCommunications Department(925) 953-1716