JV Obtains Shopping Center for $97M

CEDAR PARK, TX–Partners Inland Western Real Estate Trust Inc. and RioCan Real Estate Investment Trust have boosted its portfolio by 486,896 square feet through the purchase of 1890 Ranch. The JV paid $97.6 million to Endeavor Real Estate Group for ownership rights to the 94%-leased shopping center.

The asset at State Highway 183A and Farm-to-Market 1431 means that the JV now has 13 properties, all in Texas, and has more than 2.5 million square feet of retail assets under management. According to Shane Garrison, chief investment officer for Inland Western Retail Real Estate Trust, Inland Western formed an 80/20 partnership with the Canadian RioCan in 2010 to specifically acquire class A retail assets in Texas’ four top markets.  1890 Ranch’s location is in Cedar Park, just north of Austin.

Garrison tells GlobeSt.com in an e-mail that at 94% occupancy, there is enough upside to be found in lease-up, and the partnership will increase occupancy “through our numerous national and local tenant relationships.” Along those lines, Endeavor Real Estate Group, which makes its home in Austin, will continue working with the new owners on the local level to lease up the center.

Current tenants at 1890 Ranch include PetSmart, Academy Sports, Mattress Firm, Cinemark and Ross Dress for Less. A Super Target is a shadow anchor for the center.

Even with this deal under their collective belts, both REITS continue to eye additional Texas properties in the high-growth metro areas of Austin, Dallas/Fort Worth, Houston, and San Antonio. Said Garrison: “We are still looking at a number of properties as possibilities to close by year-end.”