Local Buyers Snag Three Retail Properties
Local buyers are dominating the Texas retail investment sales market these days. (Nobody can sell a pair of jeans to a Texan like a fellow Texan.) CBREs Kevin Holland, Chris Cozby, and Chris Gerard just closed three retail transactions totaling 313k SF, all to Houston-based groups.
We sat down with Kevin, whose team repped the sellers of Northwest Village, Fairway Centre III, and The Plazas at Grand Parkway. Youll recall Northwest Village went to Gordon Partners. Fidelis Realty Partners picked up 104k SF Fairway Centre III from Trammell Crow. Not only is that a local transaction, but its a full-circle story; Alan Hassenflu set up the development before leaving TCC. The center is 100% leased but includes an Office Depot (the merger with Office Max came to light one week before closing). The project is at 3931 Fairway Dr in Pasadena. CBREs David Aaronson and Jeff Stein secured debt and equity for the deal with a life insurance company.
Vista Equities Group purchased the Plazas at Grand Parkway (pictured, we'd like to know more about what they do at "Miracle Ear") from Sun Life Assurance Co. Kevin tells us it was a particularly seamless transaction because Vista was the original developer. (And one-third of the tenants are original users.) The 20k SF strip center is at 1575 West Grand Pkwy S in Katy and was 83% occupied at TOS. Kevin says all three properties are Class-B stabilized deals. Most investors want value-add, but there just arent many opportunities in Texas. (His team only has one true value-add listing, an REO asset in College Station.)
Kevin and company have 13 deals under contract or in negotiations across the country. In Houston, he has a 450k SF power center under contract to a regional buyer and three other deals wrapping up soon. In two weeks, his team is rolling out a 90k SF shopping center. Its in Katy and he expects it to get lots of attention because its stable and grocery-anchored. (All you have to do is make sure prospective buyers are really hungry when you show them the property.)