Asset was acquired by CRC in 2021 as part of two-retail center portfolio; this represents first shopping center disposition executed on behalf of Continental Realty Opportunistic Retail Fund I, LP
Continental Realty Corporation (CRC), on behalf of Continental Realty Opportunistic Retail Fund I, LP (CRORF), has completed the sale of Oakland Plaza, a nearly 167,000 square foot neighborhood shopping center located on John R. Road in Troy, Michigan, to Atlanta-based RCG Ventures, LLC for $25.6 million. CRC acquired the asset, along with the adjacent Oakland Square, as part of a two-retail center portfolio in 2021, signaling its entry into the Michigan real estate market and first acquisition on behalf of CRORF. Ben Wineman and Daniel Stern of Mid-America Real Estate Corporation represented CRC and procured the buyer in this sales transaction.
A day prior to the sale of the shopping center, CRC disposed of an outparcel containing a Sonic Drive-In restaurant to the end-user for $1.3 million and, earlier this year, sold a second outparcel that houses a free-standing Chase Bank branch for $2.1 million. The three transactions combined for total sale proceeds of $29 million. This represents the first shopping center disposition completed on behalf of CRORF, an open-ended private equity fund formed in 2021.
Privately held and active nationwide, with Assets Under Management (AUM) exceeding $4 billion, CRC has expanded its shopping center portfolio by more than three million square feet of space since 2020 and owns and manages approximately eight million square feet of retail space. The Baltimore-based company also owns and operates a multistate, multifamily portfolio containing more than 10,000 apartment homes.
During its hold period, CRC improved occupancy of the center from 71 percent to 97 percent, highlighted by the execution of new leases with DSW, Kids Empire, and Rally House, together with restaurants Paris Banh Mi, Mochinut, and Witch Topokki for a combined 53,000 square feet of space. CRC also elevated the overall aesthetics of Oakland Plaza with an improvement program which included repainting the entire center with an updated color scheme, resurfacing the columns, repaving the surface parking lot, and replacing common area light fixtures with LED.
“This is a particularly exciting disposition for CRC, since Oakland Plaza and Oakland Square were our first investments in the mid-west. This successful round-trip on Oakland Plaza showcases our team’s ability to execute on complex business plans and unlock value across various regions of the country,” stated Haley Donato, CRC’s Senior Vice President of Asset Management & Finance. “During our three-year hold period at Oakland Plaza, we parcelized and sold two pad sites at accretive cap rates, increased occupancy at the shopping center by over 25 percent and transformed the tenancy lineup,” she added.
Delivered in 1979 and renovated by the previous ownership group in 1994 and 2014, Oakland Plaza consists of two buildings, anchored by TJ Maxx, Michael’s, and Planet Fitness, and includes tenants such as Sally Beauty Supply and Vitamin Shoppe. The asset is situated across the street from the 1.5 million square foot Oakland Mall.
Nearly 300,000 people reside within a five-mile radius of the centers, including more than 126,000 households with average household incomes exceeding $84,000. More than 32,000 vehicles pass the site daily via John R Road.
Headquartered in Baltimore, Maryland and founded in 1960, Continental Realty Corporation is a full-service commercial real estate and investment company focused on acquiring and operating retail and multifamily properties. The privately held firm owns and manages a diversified portfolio of retail centers consisting of approximately eight million square feet of commercial space and more than 10,000 apartment homes across 12 states, with a portfolio value exceeding $4 billion. For additional information, visit www.crcrealty.com.
