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HUMBLE, TX-JMS Properties, an investment group based in Washington, has purchased the 19,500-sf Humble Shopping Center for $4.5 million from its developer.
The investment group closed the deal for 20845 US Highway 59 North, with low-leverage loan of $1.5 million, just 30% loan-to value, from JPMorgan Mortgage Capital, says Tucker Knight, an associate director with Holliday Fenoglio Fowler LP's Houston office who arranged the a 10-year loan at a fixed rate of sub-6% and 30-year amortization."Lenders love low-leverage deals...pretty much everybody was interested in doing this deal, but we chose JPMorgan because they are really aggressive on retail and offer a very easy process," Knight says.
Knight tells GlobeSt.com that JPMorgan was interested in doing the deal because of the center's location. "They liked the asset because it is shadow anchored by Target and it has good demographics," he says. The two-year-old, single-asset holding of Humble Shopping Center Ltd. of Houston is fully leased to Famous Footwear, Payless Shoe Source, Verizon Wireless, Today's Vision and Quizno's Subs.
Humble Shopping Center is JMS Properties' first acquisition in Houston, according to Knight. "The cap rates here are much more appealing here than on the West Coast," he explains. "They've looked at several retail assets. We've put several under contract,but this is the first one to close." According to Knight, Humble Shopping Center traded in the 8% cap rate range.
JMS Properties owns a diverse portfolio of real estate assets across the US. However, the retail sector has been the center of attention for the group, which prefers triple net, retail properties.
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