First Allied Wins Second Try for Class A Center

The center first hit the market in 2001 only to be rescinded after First Allied placed a contract and the owner couldn't come up with replacement land to build another, Stephen Maulden of Marcus & Millichap in Dallas tells GlobeSt.com. So, First Allied was first in line when the Hebron Heights I LP of Dallas returned the asset to market late last year at a significantly higher price in keeping with today's demand for premium retail properties.At the crux of the chase is a fully leased center, built in three stages since 1999, and supported by leases that don't begin to roll until 2006, Maulden says.

"This is a prime property. This is one of those centers that's always going to be 95 to 98% occupied all the time," Maulden explains of 1008-1012 Hebron Heights Parkway's quality and positioning on one of three retail corners at a primary intersection, Hebron Parkway and Old Denton Tap Road. The bidding pushed First Allied into paying $800,000 more than its starting offer in the last and successful run at the property, he says.

"They had a quick look and a quick close," says Howard Fuerst, the seller's other Marcus & Millichap adviser on a deal that reached the closing table in 45 days. "That's incredible for a 60,000-sf shopping center." And this time, the seller is positioned for a 1031 Exchange on Dallas/Fort Worth land to build another shopping center.

First Allied secured a loan with JPMorgan Chase's Atlanta office, the brokers said. Representing First Allied was Steven Siegel in Marcus & Millichap's Manhattan office.

The 10-acre center has a 17,000-sf freestanding Gold's Gym as the anchor with the inline space being a blend of national and local names like Re/Max DFW, Land America Title, Baskin Robbins, Dunkin Donuts and Sonny Bryan's Smokehouse.