Brixmor Property Group has acquired Arborland Center, a 404,000 square foot grocery-anchored regional shopping destination located in Ann Arbor, Michigan, for $102 million.
Arborland Center is located in a high barrier-to-entry trade area situated between the University of Michigan and Eastern Michigan University and is anchored by a range of best-in-class retailers including Kroger, DSW, Marshalls, Nordstrom Rack, Starbucks and Ulta.
With the acquisition of Arborland Center, Brixmor owns four assets totaling over 1 million square feet in the Ann Arbor MSA, including Maple Village, an open-air shopping center currently undergoing redevelopment. Brixmor recently replaced a former Kmart at Maple Village, which is also anchored by a specialty grocer, with HomeGoods, Michigan's first Sierra Trading Post and Stein Mart.
Brixmor intends to leverage its local market expertise, deep retailer relationships and value creation capabilities to drive cash flow growth at Arborland Center through near-term remerchandising and repositioning and long-term site densification.
"The acquisition of Arborland positions Brixmor as the largest institutional open-air landlord in the Ann Arbor market and is another great example of our strategy to cluster our ownership of assets in successful retail corridors and dynamic markets across the country. We see significant opportunities to enhance the merchandising at the center, densify the site and expand Arborland's regional draw, while capitalizing on the below market rents at the center," commented Mark Horgan, Executive Vice President, Chief Investment Officer.