GRAND PRAIRIE, TX-Inland Western Retail REIT Inc. has struck again in a two-year buying frenzy for class A retail space in North Texas. The newest pickup is a fully leased, 92,270-sf center along Interstate 20, which cost $16.14 million, including a loan assumption.
Jason Lazarus, the Oak Brook, IL-based REIT's vice president, tells GlobeSt.com that off-market talks have been under way about a year for the Great Southwest Crossing, positioned on roughly eight acres at the corner of Great Southwest Parkway and Bardin Road in Grand Prairie. The center is shadow-anchored by a Wal-Mart Supercenter, Sam's Club and Kroger Signature grocery store. Philip S. Rachels, vice president of Walker & Dunlop Real Estate and Financial Services in Bethesda, MD, represented the seller, Blackhawk Partners II Ltd. of Arlington, which developed the asset in 2002.
"It probably would have gone to market," Lazarus says, "but we got it first." The REIT assumed a loan held by Wachovia Securities of Charlotte, NC. "This was a pretty straight-forward deal, but for the loan and we were able to accomplish that," he says. Lazarus says the deal was locked in at $16.29 million, but re-traded right before the closing to $16.14 million and a 7.95% cap.
Lazarus says the earliest lease expiration is 2007. Anchored by Office Depot and PetsMart, the center's credit tenants and the top-draw neighbors were the dealmakers, according to Lazarus. "We definitely acquired credit tenants and solid returns on the transaction," he says. Inland Southwest Management Co. took over leasing and management duties when the deed changed hands.
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