X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-A private investor from Houston and another from California have spent about $29 million for two shopping centers in one-off transactions indicative of today’s retail sales market.

Houston El Dorado Partners Ltd. acquired the 119,870-sf Randall’s Center El Dorado at 570 El Dorado Blvd. in Clear Lake from locally based Weingarten Realty Investors. The 180,438-sf Southway Shopping Center at 8006-8230 S. Gessner Dr. passed from Southway Ventures LP of Houston to RPM Investment of Los Angeles.

George Cushing, senior vice president in Houston for Grubb & Ellis Co. explains individual investors see retail centers as a positive alternative to other forms of investment, such as the volatile stock market or the low interest rates that savings institutions offer. There is a high degree of interest in the Houston market, overall, from nationally active buyers/investors, he says.

“They see Houston as a good value for the money,” Cushing tells GlobeSt.com. “We look like we’re giving it away in comparison to what they’ll find in places like California.”

Cushing and Paula Foster, a vice president for Grubb & Ellis, negotiated the deals for both sellers. Jim Provost of El Dorado Partners negotiated the Randall’s acquisition, getting a fully leased center tagged for sale at $11.2 million. The Randall’s-anchored center on 9.8 acres, developed by Weingarten in 1984, attracted high interest in investment circles, reportedly pushing the price above the ask.

Assessed at $4.9 million, the grocery-anchored center’s appeal is a roster that’s 84% filled by national and regional retailers. Leasing and management contracts passed to Houston-based Transwestern Commercial Services after the sale.

The 28-year-old Southway Shopping Center, listed for $18.1 million, also attracted keen interest from a large pool of potential buyers, according to Cushing. Scott Dew with RPM Investment negotiated the buy side for the 96.5%-leased center. The 15.7-acre holding underwent a substantial renovation in 2002 through 2003. Anchor tenants include Dollar Tree, Boot Town and Shoe Carnival. Harris County assesses the holding at $7.6 million.

Cushing describes the Houston retail market as being in good condition for investors. “There’s been a good supply of both product and demand,” he says. “The market isn’t overbuilt and the product that is available is in good shape for investors to consider.”

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.