Part of Tel-Twelve shopping center sells for $45 million
A Chicago-based real estate private equity firm has purchased the Tel-Twelve power center in Southfield.
Kaufman & Jacobs LLC paid New York City-based RPT Realty (NYSE: RPT) $45 million for the 194,000-square-foot property on Telegraph Road between 12 Mile Road to the north and I-696 to the south, according to a press release from seller representative JLL, a Chicago-based brokerage firm with its local office in Royal Oak.
The sale marks the end of more than 50 years of ownership either by RPT or its predecessor companies — which, when based locally, developed it as an enclosed mall when Southfield already had one not far away.
An email was sent to an RPT spokesperson seeking comment on Friday.
Current tenants include Best Buy Co. Inc., Ulta Beauty Inc., DSW, PetSmart, Buy Buy Baby Inc. and Michaels Stores Inc., the release says.
The sale of the nearly 98-percent leased property does not include the Meijer Inc. or Lowe’s Cos. Inc. stores, which are separately-owned shadow anchors.
A predecessor of RPT Realty, A&W Properties, originally developed Tel-Twelve as a 630,000-square-foot enclosed mall in 1968, giving Southfield two enclosed malls within its borders; Northland Center, which is being redeveloped, opened in 1954.
Another RPT Realty predecessor, Ramco-Gershenson Properties Trust, decided to “de-mall” Tel-Twelve in 1999 and spent the next several years demolishing, building new and leasing it up as an open-air power center with new anchor users.
There are also a handful of outlot buildings with smaller retailers, and construction has started on a new Chick-fil-A restaurant there.