BELLAIRE, TX-A group of Houston investors best the $2.5-million asking price to win title to the 24,000-sf Bissonnet, a suburban retail plaza southwest of Houston.

The 85%-leased asset at 4803-4815 Bissonnet St. in Bellaire was on the market four weeks before going under contract to one of the nine offers on the table, Brad Bailey in the Houston office of Marcus & Millichap tells GlobeSt.com.

Seller Texas Pacific Properties of Houston owned the property debt-free for many years, according to Bailey, who adds that the going-forward plan calls for a 1031 Exchange to pick up another Houston-area retail asset.

Bailey says the buyer of record, Lenox Hill Holdings, is getting a value-add opportunity in rent and occupancy. The average rent is less than $10 per sf, which he says is 5% to 10% below the market average. Meanwhile, the leases expire in two to four years. That coupled with a 15% vacancy creates opportunity to increase income, he says. Radio Shack and Charlie’s Bar-B-Q headline the tenant roster.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

 

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.