Lormax Stern Purchases Phase I of Fairlane Green Retail Center in Allen Park
CRAIN’S DETROIT BUSINESS
June 07, 2010 2:46 PM
By Daniel Duggan
West Bloomfield Township-based retail developer Lormax Stern Development Co. has purchased phase one of the Fairlane Green retail development in Allen Park from a Texas-based investment group.
Sale of the 400,000-square-foot facility closed Friday. The sale price was not disclosed.
Selling the retail center was Archon Group, a real estate investment company that is a subsidiary of New York-based Goldman Sachs Inc. The Southfield office of CB Richard Ellis represented Archon. Lormax Stern represented itself.
Lormax Stern was a consultant early in the development process of the shopping center, making it interesting to purchase four years after it was built, said Chris Brochert, a partner with Lormax Stern.
“This is exactly the kind of asset Lormax Stern would purchase, he said. “It’s a long-term ownership position, and we’re reinvesting in Southeast Michigan.”
Also, among the 28 shopping centers owned by Lormax Stern, is the Lowe’s-anchored Independence Marketplace center next to Fairlane
Fairlane is known in real estate circles for its unique legal structure.
It was once a landfill used by Ford Motor Co. The Dearborn OEM’s land division, Ford Land, capped the landfill and created a vertical condominium structure for the property.
Under that structure, Archon purchased the surface of the land while Ford Land retains all land beneath the surface- including the capped landfill.
Developed in 2006, the property is certified at the “gold” level by the U.S. Green Building Council’s LEED program.
The property, on the north side of Fairlane Drive, is currently 87-percent occupied with anchor tenants Barnes & Noble, TJ Maxx, Old Navy and Bed Bath & Beyond, with a Target store adjacent to the development.
A second phase to the development is to the south, containing a Meijer, Home Depot and Best Buy.