Highland Plaza Hits Sales Block at $40M

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HIGHLAND HEIGHTS, OH-After holding onto the 247,146-sf Highland Plaza for about six years, the owner, a Cleveland-based private investment group, has put it up for sale at an asking price of $40 million, which translates to $162 per sf.

“The group consists of different partners who determined that the market was timed right for divestiture,” Mark Luttner, senior associate in the Chicago Downtown office of Marcus & Millichap, tells GlobeSt.com.

Luttner, a retail investment specialist, and Tony Sekulovski, senior director of the same Marcus & Millichap office, bagged the listing. “We do a lot of work in Ohio,” Luttner says, “and the Chicago office enables us to facilitate broader marketing of the asset.”

The power center, which is located off I 271 at 6199 Wilson Mills Rd., was completed in the late 1970s and completely redeveloped in 1995. It is currently 100% leased. Anchor tenant Home Depot has a 109,800-sf unit, and its lease expires in 2020, Luttner says. Leases for an 80,371-sf Kohl’s and a 56,975-sf Dick’s Sporting Goods have more than 10 years remaining. Rental rates, according to Luttner, range between $10.66 per sf and $13.25 per sf.

The location, adjacent Progressive Insurance headquarters, “is considered one of the best retail locations in the Cleveland MSA,” he says. “It’s a densely populated suburban area with strong demographics and the center has national credit tenants.”