GUN BARREL CITY, TX-Three years after its completion, the fully leased Liberty Plaza has been sold to a Brooklyn, NY limited partnership for close to the $2.18-million ask. The local merchant builder has sold the 15,600-sf shopping center at an 8% cap rate.
Jerry Goldstein, senior associate with Marcus & Millichap Real Estate Investment Brokerage Co.'s Houston office, tells GlobeSt.com that the center, situated on 1.3 acres at 1307 W. Main St., had been on the market just a handful of days before the buyer came along with an offer. "I knew the buyers previously, but we met again at the ICSC in May. They found the property at our booth," explains Goldstein, who represented seller US Builders LP of Houston as well as the buyer. He adds that the escrow was a little longer than usual due to some other deals the buyer was completing. "We didn't hit a lot of bumps in the road with this deal," he adds.
The acquisition was financed with a 10-year conduit loan at a fixed-rate interest at less than 6%. Wells Fargo Bank provided acquisition financing.
The center is leased to RadioShack Corp., Sherwin-Williams Co., Cato and the UPS Store, with most leases ranging from three to five years. The rents go from $10.25 per sf to $14.50 per sf.
Goldstein says the buyer gained a solid retail property in an area in which there isn't a lot of excess retail. "A Wal-Mart Supercenter is across the street. Then there's this property and one other older property. That's the extent of retail right now in Gun Barrel City," Goldstein says.
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