Weingarten Cashes In Its Lone Apartment Complex

Tracy Pursell, Weingarten's investor relations director, tells GlobeSt.com that Weingarten Holdings owned the 13.7 acres before in 1985 when the REIT was formed. REIT law forced Weingarten's hand to develop the acreage. The complex is situated at Loop 336 and River Pointe Drive.

Drew Alexander, Weingarten's president and CEO, says it was made clear from the project's onset that the focus wasn't changing to include multifamily properties. "Rather, this was just an opportunity to utilize some unimproved land, thereby creating shareholder value," he said. "While the apartment business is a fine business, it is simply not a business we are in." Alexander says sale proceeds would be redeployed into acquisitions of retail or industrial properties that are more aligned with the REIT's growth strategy. The REIT owns more than 36.9 million sf in 237 neighborhood and community shopping centers and 57 industrial properties.

Pursell says the land was developed for multifamily because it was the most suitable product choice. The tract is part of the 105-acre, master-planned River Pointe development.

Pursell says the class A property bore a 90% plus occupancy at sale time. Gary Greenberg of Weingarten Realty worked with CB Richard Ellis Inc.'s Houston multifamily team of G. Craig LaFollette, J. Todd Stewart and M. Todd Marix to sell the 273,000-sf holding. . MBS used in-house representative Mike Smuck to close the acquisition.