The property was brought to market by Lakeside 2094, a limited partnership with principals in Austin now on a course to dissolve the investment group, Jerry D. Goldstein in the Houston office of Marcus & Millichap Real Estate Investment Brokerage Co. tells GlobeSt.com. The shopping center was on the market just three weeks before it went under contract to Litchfield Lakeside LLC, one of four investors placing an offer for the holding.
The Denver buyer used 1031 Exchange money from the sale of three out-of-state retail properties and obtained additional financing from a local bank to buy the 20-year-old center at 2450 E. FM 2094 in League City, about 25 miles southeast of Houston.
Goldstein says the 87%-leased asset was expanded about five years ago. But one of the dealmakers is the four-acre tract, which has a 40,000-sf strip of undeveloped land in front of the center that could be built out with another retail building or carved into pad sites, he explains.
The property is located in a rapidly developing area close to South Shore Harbor's luxury hotels, restaurants, office buildings and Kemah Boardwalk. Lakeside's tenant roster includes Re/Max, Country Day Care, Dominion Church and Safari Animal Clinic, all on short-term leases. Goldstein says the upside lies in the occupancy, short terms on leases and sure-to-come rent hikes. The class B center's average rent is $13.20 per sf.
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