Howard S. Fuerst with Marcus & Millichap in Dallas says full offers are becoming more commonplace for retail centers under 50,000 sf, now a hot ticket for investment sales. He has a couple other deals sporting the same scenario while he's worked up a strategy to pre-sell centers before they're done being built. Two centers already have approved buyers waiting in the wings for goods that won't deliver until August and October.
In the $3.4-million sale of Coit Corners at 8000 Coit Rd. in Plano, two of the three full offers were received within five minutes of each other. "That's how hot it is," Fuerst tells GlobeSt.com of the seven offers placed for the property in three marketing days. The center sold at a 9% cap rate, with acquisition financing coming from Cleveland-based KeyBank Corp.
The three-year-old Coit Corners is fully leased with neighborhood services with Art Frame Warehouse as the lead. The class A strip center is positioned on 1.8 acres at the junction of Coit and Hedgecoxe roads, a growing residential area with most of its commercial development headed for professional offices, primarily medical in nature, and limited retail sites.
The 25-year professional isn't giving out names of buyers or sellers to protect his livelihood since both fronts have tapped him to deliver more deeds. The Portland buyer traded in a mixed bag of commercial properties to buy retail in Dallas-Fort Worth, says Fuerst who brokered the Plano transaction for the seller while a Marcus & Millichap team from Portland bargained for the buyer, who has two more centers under contract. As for the seller, Fuerst says "I convinced him that the time to sell was now.
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