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SAN ANTONIO, TX-Frost National Bank, a regional bank with local market familiarity, ensured that a local group could acquire the 81,874-square-foot Fredericks Circle Shopping Center. Daniel Jacob Jr. headed the group that bought the 1980s retail center from Fulcrum Property Group.

Getting financing to close the deal was a challenge, despite the center’s stable tenancy, high-traffic locale at 4400 Fredericksburg Rd., and established demographics. “We had a few lenders take a look, but we couldn’t get from them the same deal that Frost Bank offered,” comments Jason Brumm, associate vice president, who represented the buyer. “We give a lot of credit to both Frost and our client for getting the deal done.”

Brumm goes on to say that Frost, which is headquartered in San Antonio, knew the area and was familiar with the property, which serves a predominantly Hispanic clientele. Also, “the client had a strong banking relationship with Frost, which helped a great deal,” Brumm remarks.

The sales price of the 88%-occupied center was kept under wraps due to confidentiality considerations. Grubb & Ellis associate vice president Jerry “JJ” Williams partnered with Brumm on behalf of the buyer and says Jacob bought the center from the local seller for well below replacement value. “I’d estimate replacement costs within the $150 to $180 per square foot range,” he adds. The Bexar Central Appraisal District pegs the asset’s value at around $3.1 million.

Williams tells GlobeSt.com that the center appealed to the buyer for a variety of reasons, one of which was lease roll. “No one’s turning until 2010,” he says, noting that the tenant base consists of Family Dollar, Fallas Paredes and Rent-A-Center.

A recent addition to the tenant roster was Jackson & Lujan Eyecare, which Williams says moved from nearby Crossroads Mall. “They saw a very good increase in sales when they moved into Fredericks Circle,” he adds. “I think getting them onto Fredericks Road with all that exposure helped enormously.”

The Grubb & Ellis team also has the asset’s leasing assignment. Lease asks are $12 to $14 per square foot, triple net.

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