THE WOODLANDS, TX-A member of a Northern California TIC has invested 1031 proceeds to acquire an 89,802-sf portfolio with one office building and shopping center. The package was on the market for $12.16 million.
"The buyer came very close to that ask," says Jerry Goldstein of Marcus & Millichap Real Estate Investment Brokerage Co., who represented Bob Myers of Myers Commercial Real Estate in Dallas in the sale of the 51,802-sf Millside Office Building at 2710 Buckthorne Place and 38,000-sf Grogan's Mill shopping center at 7 Switchbud Place. The buyer, represented by a Marcus & Millichap broker in Long Beach, CA, was turning around gain from a TIC sale of similar assets in California.
"We really wanted to restrict the sale to someone who was willing to do the right due diligence," Goldstein says. "The sophistication of the buyer was important in this deal."
The seller purchased the 33-year-old shopping center and 27-year-old, class B office building about four years ago, investing close to $250,000 to renovate the office building and stabilize the tenant base in both assets. "The seller thought it was time to sell both properties because he'd reached his goal in upgrading and increasing occupancy and rents," Goldstein tells GlobeSt.com.
Millside, situated on 3.16 acres, was 93% occupied at sale time. One of the major tenants is Benchmark Hospitality Management, which owns and operates resort and hospitality properties. The building's space is fetching $18 per sf gross.
The 6.83-acre Grogan's Mill Center, which is 88% leased, is anchored by a 45,000-sf Randall's grocery store. The tenant mix primarily is local: restaurants, hair salon and Woodforest National Bank branch. Space is bringing $16 per sf to $18 per sf.
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