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THE WOODLANDS, TX-A Dallas-based partnership has made a second acquisition in the Houston area, buying College Park Plaza, a 70,277-sf unanchored strip retail center, for close to the $13-million asking price.
HSM Equity Partners Inc. bought the two-year-old center at 3091 College Park Dr. from local owner and developer College Park Partners LP, led by former Woodlands Development Co. executive Steve McPhetridge. The Montgomery Central Appraisal District assesses the holding at $4.5 million.
College Park Plaza is situated on 7.5 acres near the intersection of Interstate 45 North and College Park Drive and adjacent to St. Luke's Hospital. "They liked the overall location in the Woodlands behind a full-service hospital and across from a Wal-Mart Supercenter and Lowe's," Rusty Tamlyn, a principal with Trammell Crow Co.'s Houston office, tells GlobeSt.com. He and VP Ralph Tullier represented the seller while HSM Equity Partners' EVP Stephen A. Scott negotiated the buy side.
College Park Plaza is 60% leased to 20 local tenants. The largest tenant is Port City Java Cafe with 2,000 sf; the smallest is Abbey Road Boutique, filling 1,100 sf. The center's quoted rent is $14 per sf.
According to Tamlyn, College Park Plaza offers an attractive initial yield with near-term upside by leasing the 28,434-sf balance. There also are 1.5 acres in front of the center that could accommodate another 8,000 sf to 10,000 sf of retail development.
Filling the vacant space at College Park Plaza shouldn't be much of a challenge, Tamlyn says, because of the strong demographics in the Woodlands. Nearly 80,000 people, with an average annual household income of $116,458, live within five miles of the property. Seven months ago, HSM Equity Partners teamed with Boston-based AEW Value Investors LP on the $17-million acquisition of the 151,000-sf Kingwood Shopping Center. The center, bought from Houston-based Weingarten Realty Investors, was 84% leased at sale time.
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