DALLAS-A Southern California partnership, using 1031 exchange funds, has paid slightly more than $1.1 million for a 10,000-sf shopping center and an abutting acre with development promise in southeast Dallas. The free-and-clear trade closed at an 8.4% cap rate.
The two-year-old Lake June Retail Center at 9911 Lake June Rd. is fully leased to eight tenants who are cycling through three-year leases that expire in November 2006, Stephen Maulden with Marcus & Millichap Real Estate Brokerage Co. tells GlobeSt.com. He says the buyer will glean upside by replacing gross leases with triple net rates and picking up expense reimbursements. Right now, tenants' rates hover $12 per sf, he adds.
Maulden, teaming with Marcus & Millichap's Manuel Ramon, had the listing on the market two weeks, catching four offers and another half dozen inquiries after the contract was placed. "It was priced right with gross leases," Maulden says about the activity. The buyer, who sold property in SoCal, already has hit the streets in search of a single-user taker for the extra land beside the 2.8-acre shopping center.
Meanwhile, the seller is taking the gain and looking for other land in Dallas/Fort Worth, according to Maulden. The seller is a local restaurateur that sold the asset as 9911 Lake June Prop LLC.
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