Phillips Edison Buys Cleveland Shopping Center for $52M
JLL brokered the deal on behalf of the seller.
Phillips Edison & Co. has purchased Westgate Shopping Center, a 311,440-square-foot retail property in Cleveland’s Fairview Park suburb, for $51.5 million. JLL brokered the deal on behalf of the seller, The RH Johnson Co.
The asset previously changed hands in 2021, when RH Johnson bought it from DRA Advisors in a portfolio sale, according to CommercialEdge information. Wells Fargo Bank issued a permanent $36.6 million acquisition loan for that transaction.
A Cleveland-area shopping center
Completed in 1994 at 3181 Westgate Drive, the retail center comprises 10 buildings across a 34-acre site. The tenant roster at the Target-anchored property includes Kohl’s, Lowe’s, Marshalls, Petco, Applebee’s, Starbucks, Five Guys, Chick-fil-A and Pizza Hut. The property was 97.2 percent leased at the time of sale.
During the past three years, the retail center has secured 17 new leases or relocations, as well as 13 extensions, amounting to 130,000 square feet. Planet Fitness recently signed a 15-year lease at the property.
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Westgate Shopping Center is just off Center Ridge Road, which sees approximately 25,500 vehicles per day. The asset serves a population of more than 100,000 within a three-mile radius with an average household income over $110,900. Downtown Cleveland is some 10 miles east. The property is also adjacent to Linden and Bohlken parks, as well as the Lutheran West Stadium.
JLL Capital Markets Senior Director Michael Nieder and Director Brian Page led the Investment Sales and Advisory team that represented the seller.
Earlier this year, Phillips Edison purchased a 142,000-square-foot, grocery-anchored shopping center in Orlando, Fla., in a joint venture with Cohen & Steers Income Opportunities REIT Inc. Oak Grove Shoppes marked the second acquisition for the partnership.
Retail investment sales volume saw a 13 percent increase in the first quarter of this year, compared to the same period in 2024, according to Newmark research. This momentum was supported by a 4.6 percent rise in property values, marking the highest figure of all commercial real estate categories. Overall, the sector is still resilient, with grocery-anchored centers continuing to attract investors’ attention.
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