The shopping center and service station that make up Merchants Crossing in Jackson, Michigan, were sold last year to Miami's L2 Partners, a commercial real estate agency. The $8 million sale of the two-property portfolio has earned this deal a 2024 CoStar Impact Award for sale/acquisition of the year for West Michigan, as judged by real estate professionals familiar with the market.
Merchants Crossing is located in what is said to be the heart of Jackson's retail trade area. The three-star property on West Argyle Street was constructed in 1972 and renovated in 2004. It spans 110,070 square feet on 9.35 acres and, according to CoStar data, was nearly 93% leased at the time of sale. L2 Partners purchased Merchants Crossing as an investment.
The shopping center is anchored by discount retailer Big Lots and a Kroger grocery store and fuel center. Kroger's most recent quarterly revenue was $37.06 billion and quarterly earnings of $1.34 per share, beating expectations for the fourth time in four quarters, per Yahoo News.
Other tenants at the property include New Country China Buffet, Disc Replay and Malibu Tan.
BC Wood Properties of Kentucky sold the retail center to L2 Partners after purchasing it in 2015 as part of a larger portfolio that included shopping centers in Virginia and North Carolina.
About the Deal: Merchants Crossing, located at 1050-1140 W. Argyle St. in Jackson, was sold in August for $8 million, or $72.55 per square foot. It was on the market for 116 days, attracting multiple offers before being acquired in an all-cash deal.
What the Judges Said: "The sale of a large major shopping center, which will likely undergo significant improvement, will be a major win for the area," said Daniel Lewkowicz, vice president at Encore Real Estate Investment Services.
They Made it Happen: Ashish Vakhariya, Seth Haron, Darin Gross and Emily Feeny of Marcus & Millichap brokered the transaction on behalf of the seller.
CoStar Market Manager Patrick Riendeau contributed.