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KATY, TX-A Philadelphia-based investment group has made its first buy in Greater Houston, getting the 100%-leased, 34,500-sf Village Center Plaza at Cinco Ranch. The center, situated across the street from Super Target, was listed at $10.21 million and a 7.5% cap rate.

South Texas Republic Development Co. Ltd. developed Village Center Plaza at 23920-30 Westheimer Pkwy. in 2006. The listing attracted seven offers. The self-represented Village Center Plaza LLC earned high marks–and the buy– because of its offer and closing terms.

“The buyer liked the demos in Cinco and the location,” says Joseph B. Knauth, vice president in Houston for Colliers International Inc. He and Colliers vice president Doug P. Morrow represented South Texas Republic Development. Knauth says the buyer was in a 1031 exchange, but he didn’t have any details as to what product type was sold or where.

Knauth tells GlobeSt.com that the shopping center’s selling points were local credit-worthy tenants and the area’s demographics. “We’re also looking at a $161,000 per household income,” Knauth adds. “This was a full retail deal.”

As for the roster, most tenants have five-year leases on average. The list includes StarTex Title, La Finca Mexican Restaurant, Exit Realty, Katy ATA and Janus Coffee House.

Village Center Plaza is down the street from the 700,000-sf LaCenterra at Cinco Ranch, a mixed-use office, residential and retail lifestyle center. “The buyer was looking for a multi-tenant retail product in a great location and he found it,” Knauth says. “Cinco Ranch is one of the top suburbs in Houston.”

Knauth says the seller is a merchant builder who doesn’t hold onto properties for a long time. With the shopping center sold, the seller, who’s from nearby Katy, is preparing to bring out a just-completed medical property near Village Center Plaza.

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