SCI Makes Splash Into the Local Market With Nearly $38M Acquisition

KATY, TX-In its first foray into the local market, SCI Real Estate Investments of Los Angeles has acquired the 205,828-sf Price Plaza Shopping Center for $37.6 million. SCI is offering the power retail center, built in 2001, to TIC investors for a minimum commitment of $500,000.Located at the intersection of Interstate 10 and Fry Road, the property is 100% leased with national anchors including Best Buy, Babies "R" Us, Linens 'n Things, and Ross Dress for Less, each of which is committed to a minimum six-year lease.Ryan Shore and Doug Hazelbaker of CB Richard Ellis Co.'s Dallas office represented the seller, USA Properties of Del Mar, CA in the transaction. SCI was represented in-house.According to Scott Derrick, SCI's chief acquisitions officer, the acquisition represents an expansion for SCI in Texas. The company, which already owns property in Dallas, is searching out additional investment possibilities in Houston, San Antonio and Austin for its TIC base."We're bullish on Houston," Derrick tells GlobeSt.com. "We like the area, the population growth, the job growth and expansion of the Medical Center."Derrick goes on to say that SCI's preference, at this time, is for power centers and grocery-anchored centers that are low-risk."Our investors tend to be baby boomers that want safe, long-term A-quality institutional properties," Derrick adds. "No issues or rollovers, just nice, stable properties they can exchange into for a decent cash flow."While SCI is bullish on Texas as growing investment site, Derrick indicates that the company is seeking properties nationwide, with a main focus on the Sunbelt states. "Going forward, we're looking at Phoenix, Albuquerque, Texas, Florida and the Carolinas," he adds.