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MERCEDES, TX-After more than 12 months on the market, Mercedes Plaza has traded to a South Texas investment group for close to the $1.7-million ask. The 25,211-sf, class B center was fully leased at sale time.
Sapkam Investments LLC of McAllen bought the property at 105 S. Texas Ave. from David Cottrell Investments of Houston. The roster, of which 65% is national credit tenants, includes Beall's, Radio Shack and Little Caesar's Pizza.
Mercedes Plaza, positioned at the heart of the town, received more than six offers, according to Martin O'Malley, senior vice president of Colliers International's Houston office. He tells GlobeSt.com that Mercedes Plaza probably would have garnered more interest if the transaction didn't require the assumption of a GMAC Commercial Mortgage with an above-market interest rate that runs to 2008. "We would have had a much larger pool of buyers if we could have put new financing on it," he says.
Cottrell acquired the center in 1998, says O'Malley, who teamed with Colliers' David Butler to broker the deal. The 34-year-old center was refurbished and re-tenanted shortly after Cottrell bought it. "His modus operandi is to redevelop older space," O'Malley says. The center has an average rent of $9.60 per sf.
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