Houston Family Buys 41,992-SF Shopping Center

HOUSTON-The Park Plaza II, a 41,992-sf shopping center in the Bear Creek area of West Houston, has been purchased by a local family, which is planning to have a hands-on role in the operation of the 22-year-old asset.

The shopping center at 16200 Loch Katrine Lane was 80% occupied at sale time, George Cushing, senior vice president in the local office of Grubb & Ellis Co., tells GlobeSt.com. The tenant lineup primarily contains such local retailers as a dry cleaners, bar and barber shop.

Cushing believes the new owners, Transconsortio LLC, might be just the right medicine for this older center. “They will work hard to improve tenancy and occupancy,” he says. “They are not passive owners.”

The center, situated on 2.6 acres, was on the market about six months at a sticker price of $2.2 million. Cushing says the listing secured eight offers, but he’s mum about the selling price. The Harris County Appraisal District has attached a $1.8-million assessment to Park Plaza II.

The sale is tied to the takeover of CenterAmerica Property Trust by New Plan Excel Realty Trust Inc. of New York City, which has been selling smaller, non-core shopping centers to keep its focus on properties larger than 75,000 sf and 70% to 75% filled with credit tenants. CenterAmerica bought Park Plaza II in 1997.

The asset is positioned to Texas 6 and neighbors H-E-B grocery store. According to Cushing, top rents at the property are $11.50 per sf while the average is $9 per sf. Cushing and Paula Foster, a Grubb & Ellis associate in Houston, represented the seller. Andrew Le with Andrew & Co. of Houston negotiated on the buyer’s behalf.