CARROLLTON, TX-A 1031 exchange investor from Los Angeles has paid close to the $3.75-million ask for an unanchored, 28,891-sf shopping center with no lease rolls for two years. The local developer, though, had to wait out a second run on the market after one contract fell out for the 95%-leased center.
The buyer, deploying gain from a condo sale in Los Angeles, took the deed to Indopak Plaza at 2548 Dickerson Parkway from Arzina Inc., two brothers who are prepping to sell another retail development in Fort Worth. The deal's lone broker, Manuel Ramon with Marcus & Millichap Real Estate Investment Brokerage Co. in Dallas, tells GlobeSt.com that the deal closed at just above a 9% cap rate, with 70% loan-to-value financing coming from Houston-based Cathay Bank.
Ramon says the first contract fell out because the dynamics of the deal required conventional financing. "I don't think there was enough history there to provide comfort for a conduit lender," he says. Besides being unanchored, the two-story Indopak Center is filled by local ethnic tenants, many with multiple locations, and standard-length retail leases, he explains.
Ramon says the buyer was the highest offer in a second marketing round that generated four more offers, taking the total bids to 10 for the three-year-old development. The new owner has kept Cencor Realty Services of Dallas in place to manage the two-acre holding.
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