95%-Leased Retail Asset Sells for Nearly $19M

College Park Plaza, positioned on 9.1 acres at 3081-95 College Park Drive, was on the market about 20 days, with American Investment Exchange LLC of Paso Robles, CA offering one of the highest bids and surefire ability to close. Vaughn Miller, president of the retail division for Dallas-based Henry S. Miller Commercial, tells GlobeSt.com that the particularly attractive part of the deal is most leases have escalation clauses. His firm's affiliate, HSM Equity Partners, is the sponsor of the selling partnership.

"This presented a great opportunity for TIC investors to see a potential upside in it," Miller says. Another plus is the shopping center is situated in a barrier-to-entry market. The Woodlands is a strictly regulated community when it comes to development, so another similar center isn't too likely to pop up nearby anytime soon, he says.

Miller tells GlobeSt.com that HSM Equity bought College Park Plaza shortly after its completion in 2005. "They held onto it for only two years and then the partners decided it was time to sell," he says. The center's tenant base consists of local shop owners, professional services and some nationals, including Pizza Hut.

Miller points out the location, parking and fundamentals are strong points, which is why he wasn't surprised that the center was under contract less than one month after its debut on the market. "It's a capable property in the Woodlands, one of the fastest-growing suburbs of Houston," he says. "The property had all the quality fundamentals in a strip center, including good visibility, excellent parking, easy access and quality material."