Detroit Retail Market Activity On Track in 2002

Reasons could include record levels of new and existing home sales, theimpact of lower interest rates and the amount of refinancing activityputting cash back into the consumer sector.

There were a number of dispositions and acquisitions in the market. BillKnapps closed 11 sites, 45 Michigan National Bank sites were transformed, andKmart closed more than 300 stores nationally. After Jacobson's went bankruptand liquidated their assets, CVS won a bid to own one of Jacobson's formersites in Grosse Pointe at a cost of $10.7 million. The 102,000-sf locationwas sold to Central Park Properties, and another Jacobson's property, an80,000-sf facility located on Old Woodward Avenue, is under contract withBurton Katzman. Harmony House also sold 21 stores.

New complexes also were constructed, including the Village of Rochester.Another development under way in 2002, said CB, was North Orchard Place, aretail center at 14 Mile Road and Northwestern Highway in Farmington Hills.CB Richard Ellis said the 600,000-sf facility is being developed by GrandSakwa Properties.

The company said it sees conditions as being stable to slowly rising in2003, though the threat of war could affect the market. It's expected thatWal-Mart, Target and Kohls will cherry-pick Kmart locations.

Also coming on the market will be retail built by Lormax Stern at the old VAHospital site in Allen Park, Milford Crossings in Milford, Oakwood Plaza inAllen Park, Willow Ridge in Van Buren, Chesterfield Commons in Chesterfieldand Gateway II in Farmington Hills, said CB Richard Ellis.