PARMA, OH (WOIO) –
Phillips Edison Strategic Investment Fund II LLC has purchased Parmatown Mall, one of Northeast Ohio’s largest retail properties. The 1.18 million-square-foot, mixed-use complex is located on 83 acres in Parma, Ohio, approximately eight miles southwest of downtown Cleveland.
The property includes three components: (1) Parmatown Plaza, an enclosed, single-story, regional shopping mall anchored by JCPenney, Dick’s Sporting Goods and Walmart; (2) Parmatown Strip Center, a neighborhood retail center anchored by Marc’s Grocery Store; and (3) Parmatown Medical Center, a four-story medical office building.
Roy Williams, vice president of Phillips Edison’s Strategic Investment Fund, said, “Phillips Edison has been in the business of redeveloping retail properties for over 20 years. Parmatown represents an ideal opportunity to apply our expertise and revitalize this historic property to its full potential. Now that the acquisition process has been concluded, we will focus our efforts on a comprehensive strategy that will rejuvenate this key component of Parma’s commercial center.”
Parmatown is prominently located at the corner of Ridgewood Road and Ridge Road, two of the busiest thoroughfares in Parma, the seventh largest city in Ohio. Built in 1955, Parmatown was expanded and renovated in 1985, 2004 and 2005. The complex has been managed by a court-appointed receiver since July 2011 after the original owners defaulted on the mortgage. Phillips Edison has spent several months working with the receiver to conclude the acquisition.
Timothy DeGeeter, mayor of Parma, has met with Phillips Edison representatives throughout the process. He said, “From Day One, our administration has been committed to doing whatever is possible to aid in the redevelopment of the mall and Day Drive corridor. The bottom line is quality of life for Parma residents. With the building of a new library under way, and with City Hall and Byers Field nearby, the redevelopment of this area is an important piece of the puzzle for Parma’s future. I am thrilled with the progress this acquisition represents and looking forward to working with Phillips Edison to create an exciting city center right here in Parma.”
In a separate transaction, Phillips Edison is also acquiring the empty Macy’s building, which closed earlier this year, along with some small-shop space and parking areas owned by Macy’s.
Parmatown is the fourth purchase for Strategic Investment Fund II, a follow-on fund to Strategic Investment Fund I, which Phillips Edison established in 2007 to focus on buying and improving large distressed real estate opportunities that could benefit from the company’s well-known and successful operating platform. With Fund I fully invested, the company raised $57 million of new equity in 2011 from its well-established pool of investors to take advantage of real estate opportunities in the marketplace.
Phillips Edison & Company is a fully integrated retail real estate company which owns and manages more than 225 neighborhood and community shopping centers in 35 states. The company has headquarters in Cincinnati and Salt Lake City, as well as regional offices across the country. For more information, visit www.phillipsedison.com.
Article Courtesy of WOIO 19 Action News