A New York real estate company has paid more than $1 million for one of the Akron area’s oldest strip centers, the struggling Midway Plaza.
Namdar Realty Group of Great Neck, N.Y., bought the plaza — totaling more than 150,000 square feet and hit with vacancies — for $1.25 million.
Most of the property, built in 1955 at Tallmadge Avenue and Brittain Road, is in Tallmadge. The front part of the parking lot is in Akron. The property, including the parking lot, encompasses more than 18 acres.
Joel J. Gorjian, an executive with Namdar Realty, said in a news release Monday that the purchase was an all-cash deal. The seller was Commercial Properties Inc.
Peter Wilk, who owns a marketing company that represents Namdar Realty, said in an interview that the real estate company does not disclose its funding sources.
Namdar Realty specializes in buying distressed retail centers and other properties and turning them around, Wilk said.
“They are usually very successful in filling up vacancies with regional and local and national retailers,” Wilk said.
The property went up for auction in 2011, but there were no takers. The reserve price was $1.5 million. In an auction, if the high bidder does not reach the reserve, the owner is not obligated to sell.
At the time, the property had been appraised for tax purposes at $2.116 million. Currently, Summit property tax records list the appraised value at $1.378 million.
Gorjian said in the news release that Midway Plaza “fits well into our portfolio due to its redevelopment and repositioning potential.” He said Namdar plans to “retain and operate the property long term.”
Wilk said specifics of redevelopment plans were not available.
Occupants of the plaza include Rent-A-Center, Petra Middle Eastern Foods supermarket, Save-A-Lot grocery, A & A Beauty Supply, Liberty Tax Service, Appliance Mart Parts & Repair and Goodwill, which operates a store at the plaza.
The vacancy rate was not available.
Namdar owns and operates more than 20 million square feet of commercial real estate in the United States. Its portfolio boasts more than 100 retail centers, medical buildings and office properties. The company’s purchases primarily are in the Midwest, Southeast and Northeast.
Katie Byard can be reached at 330-996-3781 or kbyard@thebeaconjournal.com. Follow her @KatieByardABJ on Twitter or www.facebook.com/KatieByardABJ.