Roger Gault, president of the Gault Co., has acquired a 95-unit multifamily asset in St. Louis; 19,530-sf shopping center in the East Texas town of Lindale; 25,013-sf single-tenant flex office building in Irving; and 8,000-sf Texas Land & Cattle Steak House in Arlington, TX. The deals ranged from $1.65 million to nearly $8 million, sending roughly $15 million into action.
"The thought on all is to hold long term," Gault tells GlobeSt.com. "We really underwrote the real estate. It's all well-located." The one exception could be the multifamily piece, which could swing to condos in two years.
Gault teamed with Bruce Mills of Mills Properties Inc. in St. Louis to buy the Jaccard Apartments, which have been renamed to the Oaks at Bonhomme Road. The 88%-leased complex at 8649 Old Bonhomme Rd. in the University City section of St. Louis is situated two miles from the Galleria. Listed for $8.2 million, the 33-year-old complex, positioned on five acres, has one-, two- and three-bedroom units, of which 50% have garages. Units average 1,211 sf; rents run 86 cents per sf.
"It's a natural condo conversion opportunity," Gault says. The deal was brokered by Earl Mason of Princeton Realty in Dallas. Mills is overseeing the asset.
The newest piece of the real estate is the 10-month-old Lindale Corners at 3222 S. Main St. in the City of Lindale, developed by Dallas-based St. Ives Realty. The 4.7-acre shopping center, situated one block north of Interstate 20, went for $3.5 million to $4 million.
The 90%-leased asset stands in the shadow of a new WalMart Supercenter and Lowe's Home Improvement store. Lindale Corners' lead tenant is CATO. Perry B. Hall Co. of Tyler will lease and manage the unanchored center. Andy McRoberts of McRoberts & Co. in Dallas represented Gault.
The wheeling and dealing picked up a single-tenant, net-leased building at 1939 Hereford St. at a discount to the $1.65-million list. Bought as-is, the 28-year-old building on 1.5 acres is leased to Quantum Global Technologies, which has five years left on its term, according to Gault.
"The current rents are below market and there are additional bumps in the rent," Gault confides. "We bought it a reasonable cap rate, but we feel there's upside in the future." Sean Byrne with the Byrne Co. in Dallas was the listing broker; Russell Cosby with Magellan Commercial Realty Inc. in Irving represented Gault.
Gault's first deployment was to buy the Texas Land & Cattle building on 1.5 acres at 2009 E. Copeland Rd., situated right along Interstate 30 near Rangers Ballpark and the under-construction Dallas Cowboys stadium. Gault says the incentive is there are six years left on the lease for the chain's 10-year-old build-to-suit, which was tagged at $2.1 million. McRoberts represented Gaul while Joe Garrett with Sperry Van Ness in Fort Worth brokered for the seller of record, Arlington Land JV of Dallas.
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