HOUSTON-North American Development Group has beaten out 11 other investors to acquire The Commons at Presidio Square, a 189,340-square-foot shopping center anchored by H-E-B. The Toronto-based firm paid $13.6 million for the property, which is situated on 22.5 acres at the intersection of Highway 6 and Bellaire Boulevard on the west side.
“There was a lot of interest [in the center] since everyone wants grocery-anchored retail today,” says Rusty Tamlyn, a senior managing director with HFF who led the investment sales team on behalf of the seller, Camden Securities Co. His team also included HFF real estate analyst Trent Agnew.
“Investors liked the H-E-B most of all – it’s the best grocer retailer in this part of country – and the store is busy,” Tamlyn tells GlobeSt. “When the owner tore down the old theater and vacant box to do the H-E-B ground lease, the center started turning around.”
Currently, The Commons at Presidio Square is 89.9% occupied. In addition to H-E-B, tenants include Palais Royal, Radio Shack, IHOP and JPMorgan Chase. Rental rates range from $10 per square foot to $20 per square foot, triple net.
“The Commons at Presidio Square’s five-mile primary trade radius has a population of approximately 300,000, which is expected to grow by more than 12% over the next five years, providing a loyal base of customers for the center,” Tamlyn says.
As part of the acquisition of The Commons at Presidio Square, NADG assumed an existing CMBS loan with CIBC that totaled $ 10.6 million. The loan has a 6.26 % interest rate and matures in 2014.
NADG is actively acquiring both neighborhood community retail centers and development sites throughout the U.S. The firm has purchased 12 existing centers and food supermarket development sites over the past eight months, comprising a total gross leasable area of 1 million square feet.
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