Golden Gate Shopping Center in Mayfield Heights has been sold for more than $47 million to a joint venture formed by two East Coast firms.
Hornig Capital Partners LLC, a New York-based real estate firm, said in a news release that it partnered with Hutensky Capital Partners of Hartford, Conn., to buy Golden Gate from Forest City Enterprises Inc. The joint venture paid $47.05 million, according to the release.
Golden Gate, built in 1958, is a 371,748-square-foot center that was renovated in 1995. It’s anchored by national tenants including Marshalls, PetSmart, Golf Galaxy, h.h. gregg, OfficeMax and Jo-Ann Fabrics.
Daren W. Hornig, managing partner at Hornig Capital, said, "We are pleased to acquire this thriving, stable asset and are confident we will be able to add value given its existing tenant base and prominent position in this improving market. This is exactly the kind of property we look to purchase as we continue to enhance our portfolio with high-quality retail, office, hospitality and residential assets, both in New York as well as in select markets throughout the country."
Ed Chanatry, senior vice president of asset management at Forest City, said in the release, "We’re pleased with this sale, which is consistent with our strategy of focusing on regional malls and exiting specialty retail centers outside of the New York City metropolitan market. At the same time, we and our partner have owned Golden Gate for nearly five decades, so finding the right buyer and achieving the right terms were imperatives. We’re certain the new owners will continue to make Golden Gate a strong eastside shopping destination."
Hornig Capital was formed a year ago. It has made two acquisitions this year “and has several more planned for the remainder of 2014,” according to the release.
Kyle Hartung and Jim Becker of Goodman Real Estate Services Group LLC represented Forest City in the sale.
In its own news release, Goodman said that over the years, "as retailers have come and gone, Golden Gate has remained one of the 'must have' properties for the newest retailers entering the region. ... This continued success is remarkable given the changes in the local and national retail landscape."
Goodman said in the release that the center's "location in a stable demographic area along with interstate exposure have contributed greatly to this success; however, its longevity is especially incredible considering the evolution of retail over the past 25 years and associated competing shopping center growth throughout the region."
Joseph W. Khouri, first vice president at CBRE Inc., represented Hornig Capital in the deal. In a news release, he said the transaction "represents the largest single asset (non-portfolio) retail shopping center purchase in the Greater Cleveland market for the preceding 24 months."
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