MI Developers Form Alliance

Two Michigan developers, Grand Sakwa Properties and Lormax Stern Development, have teamed up to invest up to $1 billion in U.S. retail properties over the next three to five years.They have set up a $250 million private equity fund and say they expect to tap into other sources of "conventional financing" to reach their targeted investment level. The developers reported that they have entered into a program with KeyBank Real Estate Capital's Private Equity Group to evaluate the financing of the properties. The two developers have completed over $1 billion in financing and construction with Cleveland-based KeyBank over the past decade, according to Daniel Stern, a partner in the venture. Dan Walsh, managing director of KeyBank REC, said the developers "have repeatedly demonstrated an ability to take properties and rebuild and remarket them for increased efficiency and community satisfaction."