Ann Arbor's McKinley appointed receiver of major retail development near Brighton
Photo by Dwight Burdette
The company was appointed receiver of the Greek Oak Village Place shopping center, developed in phases by Lormax Stern, REDICO and Quadrants Inc. beginning in 2005.
“Our job is to stabilize the property, maximize the occupancy and the value in its current condition, so we’re setting forth to do that,” said McKinley CEO Albert Berriz.
The development, located along U.S.-23 just south of I-96, was constructed in phases starting in 2005. Tenants include Old Navy, Dick’s Sporting Goods, J.C. Penney, Johnny Carino’s and Buffalo Wild Wings, among others.
When the project was built, expected to cost more than $100 million, it created a regional shopping destination for the areas surrounding Brighton. It was nominated for a Deal of the Year award by the Ann Arbor Business Review in the retail category in 2007. But following failed mortgage payments and a foreclosure, McKinley was appointed to stabilize the property and raise the occupancy levels.
Berriz said occupancy is at 89 percent, and his team is evaluating any outstanding issues with the property. He said a healthy occupancy for a development of that size is about 93 to 95 percent.
"It's a good property, it just needs attention," he said.
McKinley would then position the property for a sale.
Berriz said McKinley will hire a leasing team — similar to what the company did with the former Borders headquarters in Ann Arbor. McKinley was appointed as property and asset manager for the 330,000-square-foot office building and hired Colliers International’s Ann Arbor office to market the building for sale. It was sold this month for close to the $6.9 million listing price, Berriz said.
Berriz said he doesn’t have a timeframe for when he’d like to have occupancy levels at 95 percent, but said McKinley already has turned its attention to the property.
“I think it’s an important retail asset for the Ann Arbor community,” Berriz said. “It is a large shopping center that a lot of Ann Arborites shop at.”
Founded in 1968, McKinley specializes in real estate investment, receiverships, property management, construction management and leasing. The company recently has acquired several apartment complexes in the Ann Arbor area. Berriz said McKinley owns one property in Brighton on Grand River Avenue.