The two-year-old Portofino Plaza was on the market 60 days and received multiple offers, Bradley Bailey with Marcus & Millichap's Houston office tells GlobeSt.com about the property in Shenandoah, a Woodlands neighbor north of Houston. Bailey, who along with Paul Gardner represented the Houston-based seller, Portofino Plaza LP, and developer, says the plan from the onset was to build, stabilize and sell the 19073 Interstate 45 property.
A Trammell Crow Co. team in Houston will lease and manage Portofino Plaza, which has a quoted rent of $22 per sf. Its tenant roster includes Car Toys, Dark Tan, Murphy's Deli and CitiFinancial. It sits in a neighborhood with top-draw retailers like Home Depot, Sam's Club, Old Navy, PetsMart and Conn's Appliances.
Bailey says the San Francisco buyer of Portofino Plaza is crossing over from multifamily properties to retail. In addition to using 1031 Exchange proceeds to close the deal, the buyer secured a 15-year loan with a 30-year amortization at a fixed interest rate from JPMorgan Chase & Co.
Chris Peters in Marcus & Millichap's San Francisco office says the deal closed with a cap rate in the 8% range, one of the investor's criteria for the change in product and markets outside California. The strategy switch has produced buys in Dallas/Fort Worth and Indiana. Besides Peters, the buyer's team included David Wolfe and Chris Kostanecki from Marcus & Millichap's San Francisco office.
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