Schonsheck Sells Detroit Power Center
Michigan’s only IKEA shadow-anchors the property.
Willow Creek Shopping Center, a 161,626-square-foot power center in Canton, Mich., has changed hands for $23.8 million. Schonsheck previously owned the asset, according to CommercialEdge information. Marcus & Millichap represented the seller and procured the buyer.
Willow Creek Shopping Center occupies some 18 acres at 41872 Ford Road, some 28 miles from downtown Detroit. The retail center is shadow-anchored by Michigan’s only IKEA store.
The property was 100 percent leased at the time of sale by eight tenants operating on long-term triple-net leases. The roster includes Dunham’s, Crate & Barrel, Dollar Tree, Kirkland’s, Five Below and Direct Optical of Canton, among others.
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The power center is close to Interstate 275, in an area where the daily traffic count reaches approximately 115,240 vehicles. Willow Creek Shopping Center serves around 221,245 individuals within a 5-mile radius, with the average annual household income of more than $110,000, according to Marcus & Millichap.
The firm’s Senior Vice President Ashish Vakhariya, together with First Vice Presidents of Investments Darin Gross and Seth Haron, negotiated on behalf of Schonsheck.
Detroit’s retail scene
Detroit’s retail investment activity surged during the fourth quarter of last year, according to a recent Colliers report. The sales volume amounted to more than $132 million, bringing 2024’s total to $481.6 million. However, despite several large transactions, the average sale price across the market reached only $85.95 per square foot.
A notable transaction in the metro was the $25.6 million sale of Oakland Plaza, a 167,000-square-foot shopping center in Troy, Mich. The price equated to some $153.3 per square foot.
Meanwhile, the vacancy rate clocked in at 5.2 percent at the end of Q4 2024, significantly higher than the national average of 4.1 percent. Approximately 54,838 square feet of retail space was delivered in the Detroit metro, while 40 projects totaling 558,531 square feet were under construction across various submarkets.
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