Octave buys Lakeshore Marketplace in Michigan for $41.5M

Octave Holdings & Investments expanded its Michigan portfolio with the acquisition of Lakeshore Marketplace in Norton Shores, its fourth property in the state. The 349,332-square-foot center adds another necessity-anchored asset to the firm’s Midwest push and was acquired through a joint venture with Peachtree Partners.

Why it matters: - Octave Holdings & Investments is deepening its Midwest footprint with another large, income-producing retail center. - The deal adds a dominant shopping destination in a trade area lined with national retailers and strong traffic access. - The acquisition fits Octave’s focus on necessity-anchored real estate that can hold up across economic cycles.

What happened: - Octave acquired Lakeshore Marketplace in Norton Shores, Michigan, for $41.5 million. - The purchase marks Octave’s fourth acquisition in Michigan. - Octave completed the deal in a joint venture with Peachtree Partners. - The acquisition also used proceeds from two 1031 exchanges tied to the earlier dispositions of Rivermont Square and Sugarcreek Plaza.

The details: - Lakeshore Marketplace is a 349,332-square-foot regional shopping center. - The center is anchored by TJ Maxx, HomeGoods, Sierra, Hobby Lobby, Burlington, Old Navy, Five Below, Petco, Dollar Tree, Dunham’s Sports and Barnes & Noble. - Target shadows the property. - The shopping center sits on 40.92 acres. - The property is at the northeast quadrant of U.S. Route 31 and East Sternberg Road in the Grand Rapids–Muskegon metro area. - The site has direct access to the U.S. Route 31 interchange. - Traffic on that corridor is about 45,000 vehicles a day. - More than 179,000 residents live within a 10-mile radius. - Muskegon County Airport is about two miles west of the property. - The surrounding Norton Shores submarket includes Costco, Lowe’s, Menards, Meijer, ALDI, Dick’s Sporting Goods, Best Buy, Kohl’s, Ulta and PetSmart. - Scott Henard, Octave’s EVP and director of transactions, said the newly completed Sierra lease leaves the center anchored by three TJX tenants and positions it as the dominant center in the submarket.

Between the lines: - The deal signals continued investor appetite for retail assets tied to daily needs rather than discretionary spending. - The tenant mix blends discount, value, home, apparel and specialty retailers, which can make the property more resilient in weaker consumer environments. - Octave is also using tax-deferred sale proceeds to recycle capital into a larger platform of similar assets. - Zia Rahman, Octave’s partner and chief strategy officer, framed the purchase as part of a broader strategy to build a diversified portfolio of resilient, necessity-based properties.

What’s next: - Octave said it will keep looking for high-quality necessity-anchored and necessity-shadow-anchored shopping centers that fit its investment criteria. - The company plans to continue expanding a portfolio of resilient, income-producing assets. - The firm said the strategy is aimed at essential real estate that can perform across market cycles.

The bottom line: - Octave is adding scale in Michigan by buying a large, well-occupied retail center in a strong regional trade area.