Power Sales for Power Centers

Make that five transactions in four weeks (and four more expected to close this month) for Mid-America Real Estate Group. The nine-person investment sales team is led by Rick Drogosz, Ben Wineman and Joe Girardi.

 
Rick and Ben said their team has already exceeded their sales volume from 2009 (a refrain we hear so much that we think last year deserves an asterisk), with more than $120M sold so far this year, mostly in the last 90 days. They're expecting to match the $350M they did in 2008, although they won't match their 2007 peak volume of $800M.  Driving the sales are cap rates pushing into the 6s in prime markets with food-anchored centers. That's a 100 to 150 bps swing from last year. MidAmerica continues pushing its borders geographically, branching out to an eight-state area in the Midwest. It's seeing the same buyers as usual go after the properties: REITs, individual investors, and pension funds—but fewer 1031 exchanges.
Recent closings include LaGrange Crossing in LaGrange, Hoffman Village  in Hoffman Estates, Springboro in Dayton, OH, Liberty Square in Waucaunda and the REO Roseland Shopping Center in Shelby Township, Mich. The team is expecting to close on a grocery-anchored center in suburban Chicago  this week. Ben says he expects that core pricing will stay low and the rate of sales will depend on financial institutions and willingness to lend.

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