MESQUITE, TX-A one-year owner has flipped a 26,635-sf, six-tenant shopping center for close to the $8.1-million asking price. The asset traded at an 8% cap rate.
"That's unbelievable in this market," says Howard Fuerst with Marcus & Millichap's national retail group in Dallas. The Boca Raton, FL-based seller was planning a long-term hold of the 2.1-acre Mesquite Towne Centre at 18661 LBJ Freeway, but was convinced to sell after one year because of today's premium prices and investors' hardy appetite for retail, Fuerst tells GlobeSt.com.
Fuerst says a dozen offers rolled in during a two-week marketing period. The asking price was $8.1 million for a 100%-leased center with an all-national lineup. "And," he says, "we came close to that number." He adds that the San Francisco-area buyer, armed with 1031 Exchange capital from a multifamily sale in California, came in with "the strongest offer" because he needed an October closing.
The shopping center is filled by tenants tied to leases with five- and 10-year terms, Fuerst says. The roster is made up of Panera Bread, Tweeters, Rockler Woodworking & Hardware, Kinko's, Nextel and the Vitamin Shoppe. Assessed at $2.9 million, the Mesquite Towne Centre is across the street from a General Growth Properties-owned mall, Town East, one of the region's strongest in its category.
The first-time Texas buyer was represented by Christopher Kostanecki, Christopher Peters and Zep Ripple, all in Marcus & Millichap's San Francisco office. Fuerst and Barry Wolfe in the brokerage firm's Fort Lauderdale office ran the seller's side of the deal.
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