SOUTHLAKE, TX-Dallas-based Dunhill Partners LP has tucked away another retail deed, picking up 132,609 sf of inline space in an Albertsons-anchored development at a key suburban intersection. Sources peg the trade at more than $20 million.
Dunhill has bought three shopping centers and sold four already this year. The latest pick-up is Southlake Marketplace, a 93%-leased asset at 2001-2225 Southlake Blvd. in the heart of a suburb known for its high-income levels and high-profile residents from several of Dallas' pro sports teams.
Dunhill was one of "two or three" offers in the same price range although 20 bids went on the table during the 30-day marketing, Adam T. Howells, a Dallas director with Holliday Fenoglio Fowler LP, tells GlobeSt.com. "We picked them because of their local knowledge and their closing ability," he says. "This was a property that fit their buying parameters."
Howells says Dunhill assumed a $10.7-million loan against the 23,152-sf first phase, built in 1994, and the 89,503-sf third phase, constructed in 2001. The 19,954-sf second phase was unencumbered by the seller, Dallas-based Drews Realty Investments. Howells says the assumption of the locked-out conduit loan took three months to clear the desk of Charlotte, NC-based Wachovia Securities. The terms prevent prepayment for another two years, he adds.
Dunhill, which leases and manages its properties, bought an inline roster with minimal roll in the leases. The 55,000-sf Hobby Lobby's lease is good until 2021, according to Howells. The 15-acre acquisition is anchored by a 58,632-sf, Albertsons-owned store on 5.5 acres at 2201 W. Southlake Blvd.
Howells says developer John Drews closed out his retail holdings with the sale, the last of nine centers built in the past 15 years in the Southlake area. "The timing was right for a retail disposition," says Howells, who worked the deal with HFF managing director Barry M. Brown. "With the exception of having to assume some debt, it was a very clean deal. It's a great-looking asset in a great location with great demographics. It's a phenomenal long-term hold."
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