The 85%-leased asset at 4803-4815 Bissonnet St. in Bellaire was on the market four weeks before going under contract to one of the nine offers on the table, Brad Bailey in the Houston office of Marcus & Millichap tells GlobeSt.com.
Seller Texas Pacific Properties of Houston owned the property debt-free for many years, according to Bailey, who adds that the going-forward plan calls for a 1031 Exchange to pick up another Houston-area retail asset.
Bailey says the buyer of record, Lenox Hill Holdings, is getting a value-add opportunity in rent and occupancy. The average rent is less than $10 per sf, which he says is 5% to 10% below the market average. Meanwhile, the leases expire in two to four years. That coupled with a 15% vacancy creates opportunity to increase income, he says. Radio Shack and Charlie's Bar-B-Q headline the tenant roster.
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