SUNSET VALLEY, TX-Cole Real Estate Investments has acquired Sunset Valley Homestead, a 147,841-square-foot power center, for an undisclosed price.

Market experts say the two-year-old property is worth $40 million, and Travis County has assessed it at $26.3 million.

“We are excited about this acquisition because it is in an excellent trade area with high barriers to entry,” says Kim Kundrak, Cole’s senior vice president and chief acquisitions officer.

Located six miles from downtown Austin at the southeast quadrant of U.S. Highway 290 West and Brodie Lane, Sunset Valley Homestead is anchored by PetSmart, Babies R Us, DSW and Ulta. It also includes a diverse restaurant lineup that includes a fast casual Japanese restaurant called Zen, Jamba Juice, Which Wich and Doc’s Motorworks. It is 100% occupied, according to Will Majors of Endeavor Real Estate Group.

Endeavor Real Estate Group, a local investment and brokerage firm, developed the project in partnership with Walters Southwest, a local real estate investor, and the Weaver family, which contributed the farm land to the joint venture.

Sunset Valley Homestead is situated at the main retail intersection in southwest Austin, which boasts more than 1 million square feet of retail including: Kohl's, Bed Bath & Beyond, TJ Maxx, Barnes & Noble and The Home Depot, among many others.

“Traditionally the Sunset Valley submarket has been one of the strongest, if the not the strongest, in terms of anchor sales,” says Daniel Campbell, also of Endeavor Real Estate Group. He tells GlobeSt. that the center sits on the last developable site in the submarket. “These factors make the property very attractive,” he adds.

Majors tells GlobeSt. that Sunset Valley Homestead was under contract with another investor about 12 months ago, but the buyer couldn’t line up financing, so the deal fell through. After a second marketing effort that lasted more than six months, the property generated 10 offers, according to. Barry Brown and Jim Batjer of HFF’s Dallas office brokered the deal on behalf of the sellers.

Sunset Valley, population of 350, has no property taxes, which translates into a savings of approximately 22% on property taxes when compared to similar projects within the city of Austin. Additionally, total sales tax on area shopping and dining is 7.75% compared to Austin’s 8.25%.