Karen Simon, executive vice president and managing partner for Dallas-based Bradford Cos., and Kyle Robertson, a senior vice president of investment, teamed with Great Neck, NY-based Keen Consultants LLC to auction the shuttered stores for Klaff Realty LP of Chicago. Woodcrest's new repositioning targets are a 58,716-sf box at 6249 Rufe Snow Dr. in Watauga and 56,777-sf store at 6921 Independence Pkwy. in Plano. The Watauga store carried a $1.3-million reserve and $2.5-million suggested retail while the Plano real estate commanded a $2.1-million reserve and $3-million sales tag.
Bidders had a 90-day window to make an offer on as-is structures and complete the deals within 30 days of the February auction date. All bids required a cashier's check for 10% of the offer. Simon says the Fort Worth-based Woodcrest got its deeds in the past week.
Simon tells GlobeSt.com that the post-auction scenario has deals working for several other properties in the portfolio, but the price didn't come down. Klaff, the asset manager, exercised its right to keep the reserve and retail prices at the same levels and in some cases hiked the minimum ask.
"There was a tremendous amount of interest [in the auction], but not nearly as many people bid. The attitude was they'd buy after the auction," Simon says. "The difference is it's left up to the asset manager whether they'll sell it for the reserve or if the price goes up. Several prices went away. They have a great deal of discretion in their disposition."
The auction was Bradford's first with Keen. Simon says she and Robertson won the rights to lay the ground work and do leg work because "they knew Bradford would do a good job and work hard."
Woodcrest's James A. Ryffel typically focuses on the Fort Worth side of the metroplex, but Simon says the Plano store's location was the drawing card. "He just looked at that particular store and location and liked it," she says. It is positioned on a 5.9-acre hard corner of Independence Parkway and Legacy Drive, a primary retail intersection in the far north Dallas city. The box was built in 1989 and renovated in 1999. Collin County has it assessed at $3.2 million.
[IMGCAP(2)]The Watauga store sits on 5.3 acres at a hard corner of Rufe Snow Drive and Watauga Road. It has 748 feet of frontage along Rufe Snow, also a main thoroughfare. Built in 1986, its Tarrant County assessment is $3.3 million.
Simon says a contract is in hand for a 64,311-sf Albertsons store at 6505 W. Plano Park Blvd., an anchor store for the 163,341-sf Prestonwood Park shopping center, which is 81.67% leased. The closed store was built in 1999 on 5.5 acres in the same retail corridor as Willow Bend Mall. Its assessment is $4.3 million.
Simon adds Klaff has deals in various stages of due diligence for three more shuttered Albertsons. In Carrollton, it's a 55,965-sf box developed in 1985 on 5.5 acres at 2661 Midway Rd. at the junction with Trinity Mills Road. Its assessment is $3.7 million. In Colleyville, negotiations are under way for a 56,434-sf store, built in 1988 at 4801 Colleyville Blvd. The 6.4-acre footprint, assessed at $4.1 million, sits on the doorstep of Village Park Shopping Center. In Grapevine, Klaff is in talks to sell a 67,582-sf store at 2100 W. Northwest Hwy., which is visible from Texas 114 and intersects with North Park Boulevard. The 5.2-acre tract was developed in 1985, with its current assessment at $3.79 million.
Meanwhile, Simon says one buyer is sizing up three Mervyns in the Southwest, of which one is located in Dallas County. The 76,232-sf store sits on 6.1 acres at 3663 Camp Wisdom Rd., directly across the street from Southwest Mall. The box was built in 1983 and renovated in 1991. Its assessment is $2.6 million.
The real estate is part of a 45-property package of Albertsons, Mervyns and Cub Food locations in the US. The package held 23 fee-owned locations and 23 leaseholds.
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