For more retail coverage, click GlobeSt.com/RETAIL.
IRVING, TX-AmREIT has made its first significant acquisition in the Metroplex with the $38-million buy of MacArthur Park Shopping Center, a Kroger-anchored shopping center totaling 198,443 sf. The Houston-based REIT purchased the four-year-old center from Jacksonville, FL-based Regency Centers Corp., which came into possession of the center through its acquisition of Dallas-based Pacific Realty Trust in 1998, according to Tenel Tayar, AmREIT's VP of acquisitions.
"We haven't bought anything this large in DFW in the history of the company," Tayar tells GlobeSt.com. "We're focusing on DFW and Texas for major acquisitions because we're trying to grow in our backyard and for operational regions."
According to Tayar, AmREIT has been looking for grocery-anchored assets in the Metroplex for more than a year. "MacArthur Park is the third grocery-anchored center bought this year, and the closing of this transaction doubled the value of our assets from $100 million to $200 million this year," he says.
Situated on about 23 acres near the northwest intersection of Interstate 635 and MacArthur Boulevard in the heart of the Las Colinas submarket, MacArthur Park Shopping Center is fully leased to tenants such as Linens 'n Things, Barnes & Noble and Gap. According to AmREIT, the weighted average remaining lease term for the project is eight years, and the combined annual net operating income contribution is about $2.8 million. Kroger's lease for 63,000 sf expires in 2020.
AmREIT acquired the property with $24.6 million in cash and the assumption of $13.4 million in fixed-rate debt with a 6.17% interest rate maturing in December 2008. The conduit loan is serviced by Wells Fargo Bank. Trammell Crow Co. marketed MacArthur Park on behalf of Regency Centers.
"We'll definitely be expanding in Dallas and in Texas over the next year," Tayar concludes. In addition to MacArthur Park, AmREIT also own some single-tenant properties in the Metroplex.
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