DALLAS-Demonstrating that patience can pay off, Regency Centers of Jacksonville, FL acquired the 103,000-square-foot Preston Oaks Shopping Center from Fort Worth-based Trademark Property Co. The successful closing took place close to six months after Regency Centers was beat out from buying the 229,920-square-foot Preston Royal Village Shopping Center, located across the street.
"Regency's original plan was to own all four corners," says David Disney, who worked with Stuart Brackenridge of Regency Centers to close the deal. The "four corners" of which Disney speaks are at the intersection of Royal Land and Preston Road, a high-traffic area with shopping centers on all four corners.
Disney tells GlobeSt.com that Regency's original plan was to buy Preston Royal Village. That plan was scuttled, however when AmREIT acquired the shopping center from Henry S. Miller Interests in December 2012 for close to $67 million. "As we came up short on that, we moved ahead with approaching Trademark about buying Preston Oaks, and put the deal together," Disney says.
Trademark had owned Preston Oaks, at 10720 Preston Rd., since 1991. The sales price was not released; the Dallas Central Appraisal District values the asset at $26 million.
Disney says that although two major shopping centers traded in the Preston Hollow submarket in the past six months, finding similar deals is difficult. "It's hard to pick up property in that area, though Regency is still looking," he says. "They want high-quality, grocery-anchored centers in infill location with high demographics."
Disney goes onto say that Regency won't have to make many, if any, physical improvements to the 95%-leased center. The asset underwent renovation in 2012 when specialty grocery store Central Market took over space vacated by Borders Books.
The Preston Oaks closing is Disney's first since leaving United Commercial Realty and going back out on his own. Disney has high praise for UCR, where he spent four years, but decided it was time to go solo again. "I had my own company for 13 years before joining UCR," he adds. "This is a continuation of where I was before."
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