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TEXAS CITY, TX-An investor from Houston, Peter Eit Investments, has emerged as the high bidder in the sale of Mainland Mall, a 68,777-sf retail center here. Houston-based Weingarten Realty Investors sold the center, which is located at 5210 FM 1765.
Mainland Mall was listed at $3.7 million or $54 per sf. While no one is talking, sources say the final price was "close" to that. At that price, the center offered a cap rate of 10%, according to Jerry Goldstein, a senior investment associate with Marcus & Millichap Real Estate Investment Brokerage Co. Goldstein represented Weingarten in the sale, while Peter Eit Investments was represented by Mark McGinley of Tarrantino Properties.
Built in 1968 and renovated in 1992, Mainland Mall is comprised of two buildings, a 55,592-sf structure anchored by Arlan's Market, and a 13,185-sf freestanding building that is vacant. Both buildings sit on 11.4 acres. Other tenants in the center include America's Ace Cash; Family Dollar; H&R Block; Subway and Check'n'Go. National credit tenants occupy 86% of the leased space, and rental rates range from $4 per sf to $17 per sf.
Mainland Mall received five offers during its 30 days on the market, Goldstein tells GlobeSt.com. "The return was generous to begin with and there's upside in the land," he says, adding that there's some risk in the vacancy, but the land could be sold off for future development. The Galveston Central Appraisal District has levied an assessment of $2.1 million on Mainland Mall.
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