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Covington Buys More Than 900,000 SF of Retail

CHICAGO-The locally based company is the new owner of four properties in Texas, Missouri and Mississippi.

By Gina Kenny | Updated on May 08, 2007

CHICAGO-Covington Realty Partners LLC, based here, has purchased four retail centers in Texas, Missouri and Mississippi. The Houston office of Holliday Fenoglio Fowler LP secured $160 million in loans for the acquisition of the properties. Sales prices were not disclosed, but Covington received a total of $40.5 million for the purchase of Cameron Crossing in McKinney, TX; $60.1 million for First Colony Commons in Sugar Land, TX; $28.0 million for Dardenne Town Square in Dardenne Prairie, MO, and $31.3 million for Lakeland Commons in the Flowood area of Jackson, MS. Wachovia Securities was the lender.

Jeff Knowles, managing director of the Houston office of HFF, represented Covington Realty Partners in the loan transactions. “All four properties that were financed were all different sellers. They were all the same buyer and they were all done as different transactions,” he says. Knowles said he could not disclose cap rates for the sales or the loan to value amounts for the loans.

Cameron Crossing, a 366,881-sf regional shopping center at the southwest corner of US 75 and US 380, was purchased from Dallas, TX-based Hunt Properties Inc., which developed the shopping center. The center, which was completed in 1999 on a 35-acre site, is currently 94% occupied. Tenants include Home Depot, Best Buy, Ross Dress for Less and PetSmart. The average lease rate for the anchor tenants is “$10 per sf and below” and the average lease rate for the other tenants is in the “low 20′s” per sf, Knowles says. Covington received a $33.5 million acquisition loan with a 5.61% fixed-rate for a term of 10 years and a $7.0 million mezzanine loan for Cameron Crossing.

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