HOUSTON-A limited liability company from Southern California has obtained the 85,729-sf, 98%-leased Westgate Shopping Center for close to the $22.16-million list. The new buyer in town, getting a 7% cap rate on its first deal, is eyeing other investment opportunities in the region.

"The buyer is offering on some of our other listings currently, but nothing's been signed or accepted," says George Cushing, senior vice president in Grubb & Ellis Co.'s Houston office. He says Royal Investors Group got the center at 19620 Katy Freeway because of its solid price, aggressive earnest money and timing. Cushing and Grubb & Ellis associate Wendy Vandeventer represented the local seller, Gulf Coast Commercial Group.

The center was completed last year so there is no near-term roll in the leases. "There are a couple there that are into a five-year term and a lot are 10 years and above," Cushing tells GlobeSt.com. Lead tenants include LA Fitness, which fills 45,000-sf freestanding building, an Applebee's Bar & Grill on a pad site and inline stores like Panera Bread, Mattress Giant and Vitamin Shoppe.

Cushing says Westgate Shopping Center was being managed by the seller, but the new owner intends to hire another company to lease and manage it. The 10-acre development, near the intersection of Fry Road and Interstate 10, is in a pocket with large retail developments and a growing residential population base.

Cushing says the lead tenants are posting performance levels far in excess of expectations. LA Fitness, which opened in early 2006, is well above its goal on sign-up. "The one doing very well is Panera Bread," he adds. "They're extremely happy with the performance of that particular store."