David Wheeler, executive vice president of acquisitions for theHouston-based REIT, tells GlobeSt.com that the Promenade Northshopping center at 740-980 N. Coit Rd. and professional building at500 N. Coit Rd. were projected to sell for $15 million to $20million. He says the REIT claimed the class B asset for less than$15 million and considerably less than replacement cost, which heestimates at $30 million for the 1970s-era buildings on 13.2 acres.He says the Unum Group of Chattanooga, TN passed the deed in thepast 48 hours.

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Wheeler says the team's already interviewing architects as thefirst step in determining the extent of the overhaul for the asset.He says the REIT is banking on increased rents from the renovationand lease-up to build upside. On the road to the closing, theshopping center's anchor, International Gourmet Foods, signed arenewal and expansion, bumping its lease to 25,000 sf. Theexpansion is under way.

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During the transition, Wheeler says the REIT has kept ColliersInternational's executive vice president Kevin Brookmole in placefor leasing while management rolls in-house. Wheeler says there isan additional 10,684 sf of retail and office leases rolling beforethe year ends and another 16,577 sf in 2009.

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Hartman Income REIT owns six office properties, totaling 650,000sf in Dallas, of which three-fourths is located within five milesof Promenade North. With the closing, the new owner has claimed itsfirst piece of retail in North Texas. The majority of its retail islocated in Houston and San Antonio.

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Wheeler says the REIT hung in for the long haul due to thevalue-add lining of the acquisition, with the contract in placebefore former Colliers' broker Cary Krier moved to Jones LangLaSalle in Dallas. "It worked out to our advantage for us to have along contract and close it at our convenience," he says. "We feltit was a really good buy."

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