JV Acquires 95,000-SF Towne Centre Plaza

MESQUITE, TX-Dallas-based The Retail Connection partnered with Canadian firm North American Development Group to acquire the 94,109-square-foot Towne Centre Plaza from a Los Angeles seller. The 10-year-old shopping center with Bed Bath & Beyond and Best Buy as tenants offers upside to the new owners in the guise of 23,000 square feet of vacant space that once contained a Borders book store.

“Where we add value in this deal is by filling that vacant 23,000 square feet,” explains Steve Hefner, president of connected acquisitions for The Retail Connection. Hefner tells GlobeSt.com that a lease for the vacancy is close to being finalized, and should be announced within the next couple of weeks. In the meantime, the other two tenants aren’t going anywhere any time soon.

The asset, situated on approximately 8.8 acres near Interstate 635 and North Mesquite Drive, was marketed for an ask of $12.25 million. The sales price on the 76% occupied commercial real estate property was undisclosed.

Hefner says The Retail Connection and NADG have worked together before to buy the 155,000-square-foot Mansfield Pointe shopping center in Mansfield, TX. He says the JV is examining additional retail opportunities, though nothing yet is under contract.

As for its most recent buy, Hefner points out that the submarket is strong when it comes to retail, especially as Towne Centre Plaza is quite close to regional Town East Mall. “The occupancies in that submarket are better than DFW as a whole by 4% points,” he explains. “It’s becoming an even stronger market because it’s in the corridor to East Texas.”