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HOUSTON-With a 50-property portfolio in Greater Houston, New Plan Excel Realty Trust Inc. has put three shopping centers on the market. The assets, totaling 219,929 sf, are listed at $16.9 million.
"Like most REITs, New Plan is culling its non-core assets," says George Cushing, a senior vice president with Grubb & Ellis Co.'s local office who is marketing the properties for the New York City-based REIT. Up for grabs are the 45,873-sf sf Fondren Shopping Center, 74,329-sf Long Point Shopping Center and 99,727-sf Stella Link Shopping Center.
"These centers will have a broad appeal to investors," Cushing tells GlobeSt.com, adding private investors will find them attractive although they are not institutional-quality investments. He says the centers, each located in a dense, older neighborhood, represent a mix of stability and value-add opportunities, particularly Stella Link and Long Point with occupancies of 77.6% and 88%, respectively.
Stella Link Shopping Center at 9117-37 Stella Link Dr. has 16 tenants. Its anchors are Davis Food City, 21,375 sf; Conn's Clearance Outlet, 14,100 sf; Dollar General, 7,216 sf; and O'Reilly Auto Parts, 7,000 sf. Built in 1954 and renovated in 1998, the 7.6-acre property has a $5.4-million asking price. Its Harris County assessment is $4.1 million.
Long Point Shopping Center at 8114-30 Long Point Rd. has nine tenants. Its anchors are Family Thrift Center, 23,830 sf; O'Reilly Auto Parts, 18,300 sf; and Family Dollar, 9,874 sf. The 25-year-old center, situated on nearly six acres, is on the market for $5.7 million. Its assessment is $2.8 million.
The 4.3-acre Fondren Shopping Center 7205 to 7307 Bissonnet Blvd. is listed for $5.5 million. It has an assessed value of $3.3 million, according to the Harris County Appraisal District. The center was built in 1971 underwent an extensive rehabbing and re-tenanting in 1999. It is 94.2% leased, with a 20,000-sf La Canasta Furnishings as its anchor tenant. The center includes a dark 10,908-sf CVS/Pharmacy.
Cushing says lease rates vary, but small shop space generally hovers $12 per sf. The REIT acquired the properties in March 2002 when it bought 92 centers from CenterAmerica Property Trust LP of Houston.
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