WACO, TX-A private investment group from Brooklyn has ended a three-year hold of the 201,392-sf Parkdale Shopping Center. A Southern California TIC group, getting a 7.59% cap rate, has paid close to the $15-million ask to skate past nine other offers for the fully leased shopping center.
Situated on 16 acres at 5900 Bosque Blvd., Parkdale Shopping Center has upside potential because two tenants have yet to give one-year notices for their renewals, according to Jerry Goldstein with Marcus & Millichap Real Estate Investment Services in Houston office. “These are two tenants whose lease rates are low. It's a good opportunity to get an upgrade on those two spaces,” he explains. “That was a value-add feature to the property.”
Goldstein represented the seller of record, 1340 E. 9th Street Realty Corp. He says the center was well-maintained so the new owners won't need to invest much in the way of upgrades or capital. Current tenants include Hobby Lobby, Name Grand Clothing, Card & Party Factory, Big Lots, FedEx Kinko's, Papa John's Pizza, Chili's and Drug Emporium.
Goldstein says the asset came to market as part of an overall liquidation program. He says the seller plans to redeploy the money into assisted living facilities.
Goldstein says that the 36-year-old Parkdale Shopping Center attracted a good deal of interest because of its location, which is at the intersection of Valley Mills Drive and Bosque Boulevard and close to an affluent neighborhood. “Sales for reporting tenants are on the upper rung,” he adds. “This has had a great occupancy history and has weathered the test of time.”
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