Carnegie Cos., a Solon real estate company, is the new owner of The Commons at SouthPark, a shopping center at 17887 Royalton Road. The outdoor center adjoins the SouthPark Shopping Center in Strongsville.
Cole Pesses, director of acquisitions for family-owned Carnegie Cos., said in a phone interview that the fully leased center near his home “with high rent rings the bell for what we’re looking for in acquisitions.”
Carnegie purchased the 67,000-square-foot outdoor mall Sept. 23 as SouthPark Retail LLC, according to Cuyahoga County’s online property records.
The seller was The Commons of SouthPark Retail LLC, a subsidiary of Starwood Retail Group of Chicago.
The sale settles the final details of the Strongsville exit for the Starwood Capital Group subsidiary of Greenwich, Connecticut. Starwood Retail also sold the adjoining SouthPark Mall and the Cleveland Clinic Family Health & Surgery Center ground lease.
Land records do not show how much Carnegie paid for the place under a cash deal.
Starwood had paid $4 million in 2015 for the empty former Giant Eagle supermarket building on the site before converting it into a multi-tenant plaza. Cuyahoga County currently assigns it a market value of $10.8 million for property tax purposes.
Pesses said Carnegie used proceeds from the sale of two other properties in the past two years to acquire Strongsville. Federal tax law allows owners of commercial real estate to shelter proceeds from the sale of property from tax if they use the money to purchase similar new properties.
Carnegie has an appetite for more acquisitions, Pesses said. Then he added: “We are difficult.”
Separately, a press release on Carnegie’s website said the company purchased the institutional-grade mall as part of an effort to upgrade its holdings. The company’s portfolio includes more than 40 properties in multiple states.
Carnegie traces its roots to Edward J. Meisel, the operator of the former Cleveland-based tire distributor Meisel Tire, which later branched out into real estate ownership and development.