GlobeSt.com EXCLUSIVE: $26M Plus Hits Retail Homerun

PLANO, TX-With more than $26 million on the table, Dallas-based Direct Development has pulled off a “Hail Mary” play to acquire the 175,000-sf Creekwalk Shopping Center by convincing the anchor tenant to stay in place. The decision came just a day before the locked-in interest rate was set to expire.

Syd Hurley, principal of Direct Development, tells GlobeSt.com that “one of the key factors that this deal stayed together” was a locked-in rate with a spread that closed at 4.44%. The buy side knew the 44,000-sf Bed, Bath & Beyond lease was up for renewal, but didn’t know the retailer was “quietly looking at other alternatives in the marketplace” and close to signing a pact to relocate the top-performing store after a 10-year run at the class A center with a high barrier to entry location at Collin Creek Mall.

“We were caught off guard,” Hurley says. “We were very surprised to learn they had the intent to go out.”