1031 Exchange Backs $2.1M Retail Deal

HOUSTON-A private investor from Portland, OR has paid close to the ticket price of $2.1 million for a 10,132-sf strip center in the city’s northwest corridor.

Brad Bailey in the local office of Marcus & Millichap tells GlobeSt.com that the 14095 Northwest Freeway property was on the market for 42 days and received seven offers before going under contract to the buyer. The locally based Peterson Group Inc. was the seller of the two-year-old center, developed two years ago as shadow retail to a Home Depot.

The asset, which sits on a 34,000-sf tract, figures prominently into the Northwest Freeway frontage scene, given its size. The center is part of a bustling retail corridor that has sprung up in recent years along Northwest Freeway. According to Bailey, the shopping center’s freeway positioning and its big box neighbor were the main selling points.

The fully occupied center is leased for the long term to tenants like Sprint PCS, Murphy’s Deli and Kolachi Factory. Bailey says the Peterson Group, also the developer, decided to sell the stabilized asset to free itself up for other developments.

The Oregon investor is an active buyer, who turned around proceeds from a 1031 Exchange, the details of which were unavailable. Bailey says the buyer was brought in by brokers, Joe Blatner and Gary Imbrie, in Marcus & Millichap’s Portland office.

Recent research shows it’s a good time to buy retail product in the city since it is continuing to post healthy performances across the board. According to a report recently published by O’Connor & Associates, the city absorbed nearly 2.7 million sf of retail space in the second quarter, with strip centers accounting for 160,209 sf.