Orton Development Buys Columbus-Area Retail Center
2 min read
SITE Centers sold the fully leased property.
California-based Orton Development has acquired Perimeter Center, a 139,486-square-foot retail center in Dublin, Ohio, as part of a 1031 exchange. SITE Centers sold the property for $35 million, according to CommercialEdge information.
The same data provider shows Orton financed the purchase with a $17.7 million loan from Mutual of Omaha. JLL represented the seller, while Hanley Investment Group Real Estate Advisors and ParaSell Inc. assisted the buyer.
Perimeter Center came online in 1995 at 6644 Perimeter Loop Road. Anchored by a Giant Eagle Market District grocery store, the shopping center was fully leased at the time of sale; tenants include Chipotle, Edward Jones, Sport Clips and Enterprise Rent A Car, among others. The 15.5-acre property is adjacent Interstate 270 and within 15 miles of downtown Columbus, Ohio, near numerous corporate offices and headquarters.
The Hanley Investment Group team representing the buyer was led by President Ed Hanley and Executive Vice President Kevin Fryman. The JLL Retail Capital Markets team led by Managing Directors Clinton Mitchell and Amy Sands assisted the seller.
Fryman contextualized the purchase further, telling Commercial Property Executive, “We view Perimeter Center as one of the best shopping centers in the Columbus retail market. This is because Perimeter Center is anchored by Market District, Giant Eagle’s high-end concept; one of only three Market District stores currently operating in the Columbus metro. The shopping center is located in the city of Dublin, one of the most affluent markets in Columbus.”
Columbus’ continued retail success
Amid the specter of a recession and uncompromising inflation and interest rates, retail fundamentals remain strong, with more socially oriented dining and entertainment-related businesses witnessing rapid returns to their pre-pandemic habits.
Columbus in particular is seeing strong demand in nearly all of its retail sectors, even in the face of nationwide construction delays. Much of this growth is due to the area’s emerging tech and research sectors, which culminated in Intel’s recent groundbreaking on a $20 billion chip manufacturing plant. Some 640,000 square feet of retail space will enter Columbus’ inventory by the end of the year, with rents increasing by 3.8 percent, while the vacancy rate will remain at 4.1 percent, according to a Marcus & Millichap report.
Acknowledging the strength of the Columbus retail market in the context of rising interest rates, Fryman said in prepared remarks, those properties with the best tenant mix in the best locations have been impacted the least or not at all. It is all down to real estate fundamentals: The location, the tenants and the lease terms.