Buyer MG Capital LLC got a class A, three-acre stake in a 43-acre, 1.5-million-sf regional center at the intersection of Texas 6 and US Highway 59. Developer Sugarland Properties Inc. sold a nine-tenant building that was marketed to just a select group of would-be buyers, says Vaughan Ford in the Houston office of Henry S. Miller Commercial.
Ford, the buyer's broker, says the transaction closed within 30 days of placing the contract. To close the deal, the buyer secured fixed-rate, permanent financing from Wells Fargo Bank.
Gardiner Garrison, who owns MG Capital along with Scott Mueller, tells GlobeSt.com that the building with a high-profile tenant roster and good cash flow caught their eye because it is part of a controlled environment. He says they looked in midtown, downtown and elsewhere in Houston, but couldn't find the combination of controlled development and new construction like it did at the $70-million Town Center Lakeside project.
MG Capital's purchase at 1959 Lakeside Plaza Dr. is anchored by Family Christian Stores Inc., which occupies 5,000 sf. Other tenants are Pei Wei Asian Diner, Camille's Sidewalk, Washington Mutual, a UPS store, nail salon, dentist and foot-care retailer.
Garrison says MG Capital most often brokers venture capital deals, but has decided to actively pursue retail acquisitions. He believes the firm's first purchase is a shoo-in for value appreciation given the dynamics of the entire Town Center project. MG Capital's stake in the game is commanding rents of $22 per sf to $32 per sf, which Garrison says is double the average for Fort Bend County.
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