HOUSTON-A local private partnership has acquired the 41,950-sf Westcroft Shopping Center for just a shade under the $8.5-million ask from locally based Parkfield Properties Inc. in an all-cash deal. The buyer snagged the southwest Houston center, which traded at a 7.71% cap rate, to satisfy a 1031 exchange.
According to Jerry Goldstein of Marcus & Millichap Real Estate Investment Brokerage Co.'s Houston office, the 21-year-old shopping center at 5602 Hillcroft St. caters to a specific target market, mostly Middle Eastern and South Asian shoppers. The center also is situated in the Sharpstown submarket, an area heavily weighted with import businesses.
"This is a limited specialty market so the center has specialty tenants to serve it," says Goldstein, who brokered the transaction. "It's an unusual asset. There are a limited number of shopping centers that actually cater to these specific markets."
Goldstein tells GlobeSt.com that the Westcroft center attracted two offers during a brief run on the market. The buyer was selected partly because time was running out on a 1031 exchange. "We'd done business with him before," he says. "They needed to make the deal quickly and the seller wanted to sell to take advantage of the continuing good market for selling properties. So, this was positive for both parties."
The center, situated on 3.21 acres, is 80% occupied, with much of the vacant space in shell condition. Though constructed in the mid-1980s, part of the property was rebuilt in 2001. The buyer plans to handle management and leasing duties.
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