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HOUSTON-Granite Properties Inc., headquartered in Dallas, sold its recently completed free standing, 20,000-sf retail building to San Angelo-based Maggie Placer LLC. The structure is a build-to-suit being leased by K&G Fashion Store in a 10-year deal.

Situated on 3.11 acres at 13902 Northwest Freeway, the building represents the second phase for the 183,024-sf Northwest Marketplace, a power center completed in 2003 and acquired for $26.3 million by Kimco Realty Corp. The smaller retail outlet sold for close to $3 million.

Rusty Tamlyn, managing director of the capital markets group with Trammell Crow Co.’s Houston office, says the property was somewhat challenging to market because of the lease. “This had an out after five years if K&G didn’t hit a certain sales goal,” says Tamlyn, who represented the seller. Tamlyn says K&G is currently paying close to $12 per sf triple net, with increases scheduled throughout the term of the lease.

But the buyer didn’t have too many concerns about the possibility of losing a tenant within the next few years. “This is a good freestanding building on a freeway. They weren’t too worried if K&G didn’t renew, because they could re-lease,” he adds.

Additionally, Maggie Placer, run by John Stone, had the financing intact and was familiar with K&G. “All those factors played into the buyer getting the sale,” Tamlyn says. He says the K&G build-to-suit is likely the last project affiliated with Northwest Marketplace, as only a small piece of land on the site remains.

TCC’s Ralph Tullier was also on hand for the seller. Steve King with CB Richard Ellis’ Houston office represented the buyer.

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