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Selling Sales

Dallas-Ft. Worth
Selling Sales
Despite the 12.9% DFW retail vacancy, it seems the market isoptimistic that vacancies will stabilize in the near term, although the consensus is that rents haven't hit bottom. Perhaps we should have prefaced that with good news/bad news.
Tommy Tucker
We asked UCR Investment Sales' Tommy Tucker (a former Marcus & Millichap national retail group associate director) about the five sales he closed (122k SF on 13 acres) between Dec. 17-31. He sees ?a definite increase in transaction volume and investor interest, but the market is still cautious from an underwriting perspective and keen to evaluate fundamentals on a deal-by-deal basis.? Pricing on multi-tenant retail varies depending on location, with a large disparity in cap rates between suburban locations versus core, infill areas. He notes single-tenant sales activity more than doubled the number of closings in the the first half of 2010 versus the same period in 2009. There's a noticeable supply/demand imbalance of single-tenant properties for sale. As a result, pricing is aggressive with well-located, credit tenant properties getting multiple bids.
The Shops at Colorado in Denton
Among the sales: a 70k SF power center with two pads on seven acres for The Shops at Colorado (above) in Denton; Pei Wei Asian Diner, a net-leased restaurant on one acre in McKinney; the 23k SF Petco Plaza on three acres in Paris; the 14k SF Precinct Line Plaza shopping strip on one and a half acres in Hurst; and the 12k SF Main Street Retail Center shopping strip center on a half-acre in Fort Worth. Sales prices weren't disclosed. The Pei Wei at 3000 S Central Expwy was sold in a 1031 exchange and has a corporate-guaranteed lease with excellent store sales on an outparcel of Craig Crossing, a 120k SF regional shopping center. Petco Plaza is anewly constructed shopping center near a Walmart Supercenter sold by a Florida LLC to a private investor from California. The Main Street Retail Center at 3209 N Main St in Fort Worth was sold by the family that's owned it since it was developed in the 1960s. It was bought by a private investor from Dallas with plans for significant capital improvements.