$6M Deal Caps Four-Year Repositioning

Silvestri Investments' newest portfolio piece is the 1980s-era Long Point Square at 8130 Long Point Rd., a former submarket star that underwent a full-blown makeover when New Plan took control in 2002. "Years ago, this had a Kroger and a Walgreens, which relocated to other parts of the market," explains George Cushing, senior vice president in Grubb & Ellis Co.'s Houston office. New Plan's re-tenanting push backfilled the anchor spots with O'Reilly Auto Parts and Family Thrift Center, which took down 18,300 sf and 23,830 sf, respectively.

During a six-month marketing period, Long Point Square attracted more than a dozen offers, with the self-represented Silvestri appealing to New Plan on several fronts. "This is the third transaction we've done with them and the second they've done with New Plan," Cushing says. "We had a high level of confidence in them, based on our previous relationship with them." The Grubb & Ellis team included vice president Paula Foster and associate Wendy Vandeventer.

Cushing tells GlobeSt.com that lease roll isn't a concern for the new owner. Family Thrift had renewed its lease during the marketing period. And, the 9,874-sf lease for the Family Dollar store is up at the end of the year, but the broker says the new owner is fine with it. "Other parties are interested if they don't renew," Cushing says, adding that the 92%-occupied center's other leases don't roll for several years.

The New York City-based REIT's sale is part of an ongoing recycling of assets. None of its other Houston-area holdings are on the market at this time, according to Cushing. "New Plan is moving to own current-generation properties, power centers and the like with larger tenants," he adds. "Long Point Square clearly didn't fit that any more."