San Diego Trust Bags First Texas Deed for $5M

The Cabral Family Trust got the deed to the one-year-old New Heritage Village at 1720 N. Central Expressway from its developer, Graco Real Estate Development Co. of Lubbock. "We were not in first place, but we were persistent, believe me," Mark Klein with Re/Max Premier Commercial in Dallas, tells GlobeSt.com. "We had the good fortune to move into first place."

Drew Kile with Marcus & Millichap Real Estate Investment Brokerage Co.'s Dallas office represented the seller, who had the holding at 45% occupancy when it changed hands. Klein says the buyer teamed acquisition financing from Imperial Bank in Los Angeles and 1031 exchange funds from an office-and-retail sale in San Diego to make the close. Clint Lofman, vice president of Dallas-based Quantum First Capital LLC, arranged the financing.

Klein says the buyer has drawn up plans for a 33,000-sf box on the extra 2.18 acres. "We've already had interest from a national tenant," he says, adding talks also are underway with Fort Walton Beach, FL-based Java Jo'z Coffee & More LLC for a ground lease to put a drive-through shop on another small tract. Robin Barrow, vice president for the Weitzman Group in Dallas, was hired to lease New Heritage Village and Cencor Realty Services will manage it.

The shopping center's roster now consists of a Wells Fargo Bank branch, Monarch Dental Clinic and Two Seasons restaurant. Retail space is going for $18 per sf to $21 per sf.

Klein says the family trust intends to buy additional properties in the area once New Heritage Village's expansion is complete. He says the plan is to build up to larger properties for the portfolio, most likely going after 100,000 sf or more for the next acquisition.