BINGHAM FARMS, MI-Malan Realty Investors, Inc. says it will focus on sellingproperties to pay down debt, has halted new investments and has settled of a lawsuit with Grand Sakwa Properties of Farmington Hills, MI. Recognizing the substantial debt maturities facing the company, Malan’s primary focus will be on retiring debt through the sale and refinancing of currently owned properties, the board of directors says.

The company intends to use any net proceeds from property sales and refinancing activities primarily for the retirement of debt maturing during the next two-and-a-half years.

“While we expect to sell properties in relatively small portfolio groupings, Malan will consider larger transactions, including the sale of all properties or the entire company if opportunities are presented that we believe are in the interest of the shareholders,” says CEO Jeffrey Lewis.

The plan also calls for a cessation of new investment in real estate, other than reinvestment and redevelopment of properties already owned by the company, until the property sales and refinancing activities are completed. Further, Malan may have limited ability to repurchase its common stock during this period.

The amount of cash Malan will be able to pay out each quarter could fluctuate as a result of these sales and refinancing activities. As a result, future distributions could include return of capital and capital gains from property sales.

Meanwhile, the board also approved a settlement agreement with its former joint venturepartner, Grand Sakwa Properties.

“Resolving this matter was critical to enabling the company to market our Farmington Hills property without the encumbrance of a lawsuit,” Lewis says. “We exited the litigation because we have serious indications of interest in the property, and we wanted to clear the path for constructive and forward-looking discussions.”

The suit surrounded the planned redevelopment of up to 90 acres at the intersection of Orchard Lake Road, Northwestern Highway and 14 Mile Road in Farmington Hills. Grand/Sakwa filed suit in June seeking to nullify a joint development agreement. Malan filed a counterclaim seeking specific performance of the agreement, alleging breach of contract.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.