AUSTIN-Taking advantage of potential growth in a well-established neighborhood, a Dallas investor has bought the 113,271-sf Highland Village Shopping Center for nearly $9.3 million from Quick & Co. Commercial Realty.
Buyer Dennis McDaniel got a 30-year-old center with a 97% occupancy and 11.9-acre tract. "He's looking at this as a way to get a little cash flow and a decent return on investment and also a redevelopment opportunity," Brandon R. Miller, senior director with Dallas-based Metropolitan Capital Advisors, tells GlobeSt.com about the 6929 Airport Blvd. purchase.
To help make the close, Miller arranged a $7-million loan through St. Louis-based JPMorgan Mortgage Capital. He says the five-year term was fixed at a 6.01% interest rate with a 30-year amortization and 75% loan-to-value ratio.
Miller tells GlobeSt.com that leases will expire within three to five years. Then, he says, McDaniel will decide what to do with the asset. "He has the zoning and possibility of doing higher density residential," he says. Another possibility will be to keep it as a retail property, especially since there is other strong development in the area. "Retail across the street could drive more in his direction, but he's not making a decision on that right now," Miller adds.
Highland Village's current tenants are Big Lots, Hancock Fabrics Inc., a Subway Restaurant, H&R Block Inc., Rent-A-Center Inc., Dollar General Corp., CitiFinancial and H.E. Butt Grocery Co. regional administrative offices plus a mix of local restaurants and service retailers. CB Richard Ellis' Austin team negotiated the sale.
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