Pricing Continues To Change For Core-Plus Retail
LEWISVILLE, TX—Investors’ radar continues to be laser-focused on DFW for value-add retail assets. To be sure, retail demand is also keen for Houston as a close second.
The recent $48 million acquisition of three shopping centers totaling 359,309 square feet in the Dallas/Ft. Worth and Houston markets are good examples of that demand. The buyers were unidentified.
Kimco Realty Corp. was the seller of Vista Ridge Plaza and Shops at Vista Ridge located in Lewisville with the centers having a combined GLA of 292,052 square feet and an 80% lease rate. Primary tenants include Bed Bath and Beyond, DSW, Pier 1 Imports, Burke’s Outlet, HomeZone Furniture and Half Price Books. Disney Investment Group brokered the transactions.
“Investor demand for value-add and core-plus shopping centers remains robust with the buyer pool and asset pricing continuing to change,” David Disney, principal of Disney Investment Group, tells GlobeSt.com. “The Vista Ridge centers represented a timely opportunity for the marketplace to capitalize on Babies R Us departure, which created a 42,000-square-foot vacancy during our marketing process. DFW remains high on investors’ radars and this type of opportunistic retail product with this size and scale resulted in a high level of investor interest including the out-of-state buyer of the Vista Ridge assets.”
InvenTrust Properties was the seller of Tomball Town Center, a 67,244-square-foot center shadow-anchored by a Kroger Signature store and located in Tomball, TX. Tomball Town Center was 91% leased with 25 tenants occupying the shopping center at the time of closing.
“Tomball Town Center presented a compelling opportunity for the in-state buyer to acquire a well-located shopping center shadow-anchored by a high-performing Kroger Signature store that significantly out-positions a nearby HEB store,” Disney tells GlobeSt.com. “The Tomball market benefits from strong retail fundamentals, increasing consumer demand and vigorous economic growth that continues throughout the Houston metro area.”
Disney and Adam Crockett of DIG represented both sellers and procured the private buyers for each asset. Disney Investment Group has executed the sale of more than $2.28 billion of retail properties including more than $1.1 billion of transaction volume since 2012.
Kimco owns interests in 475 shopping centers comprising 81 million square feet of leasable space primarily concentrated in the top US major metropolitan markets. InvenTrust Properties Corp. is a retail company with a focus on acquiring grocery-anchored open-air centers in key growth markets with favorable demographics. InvenTrust became a self-managed REIT in 2014 and a GRESB member in 2018. The company is an owner and manager of 81 retail properties, representing 14.2 million square feet of retail space.