115,980-SF Retail Plaza Brings About $6M

HOUSTON-A local private investment group has sold the final piece to a nine-property retail portfolio, collecting about $5.9 million and ending a 10-year hold.

The sold property is the 115,980-sf Forest West, situated at the northwest corner of Antoine and Pinemont drives in the city’s northwest quadrant. Jerry D. Goldstein in the local office of Marcus & Millichap tells GlobeSt.com that the seller, Forest West Ltd., has been liquidating properties in an organized fashion for seven years.

In 2002, the 30-year-old Forest West at 5325 Antoine Dr. underwent an expansion that added a 50,000-sf grocery spot that’s now leased for 20 years to independent grocer, Food Town. Goldstein says Forest West garnered more than five offers in the six months it was on the market. When one contract fell out, the broker turned to the private investment group, Happy Village LLC, which stepped up and made the close with financing arranged through Washington Mutual by BMC Mortgage Co.

The new owner expects to realize upside potential by hiking the rent from the current average of about $9 per sf to about $12 per sf as leases roll, says Goldstein, who adds that the property is an excellent long-term investment. The plaza, situated on 8.5 acres, was more than 96% occupied at closing time. The tenant roster also includes Family Dollar, Rent-A-Center, Spin Cycle and Payless Shoe Source.

Goldstein says the addition of Food Town, which has enjoyed healthy sales, was instrumental in helping to snare a buyer. Dick Ember, a local independent broker, represented the buyer.