Class-A regional center, Renaissance Square, is anchored by Ross Dress for Less.
FORT WORTH—This highly sought-after submarket has growth projections outpacing many other US markets. There are several new commercial developments in the immediate area with a strong pipeline of residential growth.
“The DFW metroplex continues to exhibit strong growth fundamentals, ranking only second nationally to New York in terms of total job creation,” Eric Wohl, executive vice president of Hanley Investment Group, tells GlobeSt.com. “The effect on the retail market is a strong 1.9 million square feet of net positive absorption in second quarter 2018, which has contributed to a steady year-over-year increase in average asking rental rates.”
One example of a retail asset with widespread appeal is the class-A regional center built in 2014 on 20.67 acres. The 105,605-square-foot Renaissance Square is shadow anchored by a recently developed Walmart Supercenter. It is located at 2700 Renaissance Dr. Beaumont, TX-based Albanese Cormier Holdings recently purchased the retail center for an undisclosed purchase price.
The property, which was 98.5% occupied at the time of the purchase, is anchored by Ross Dress for Less, Marshalls, Shoe Carnival, It's Fashion, Dollar Tree and Hibbett Sports. The purchase also included an outparcel featuring Wingstop, Pizza Hut, Metro PCS and Legacy Texas Bank.
Wohl and associate Andrew Cunningham represented the buyer. Jeffrey Jackson, a senior associate with CBRE in Houston, represented the seller, Moriah Real Estate Company of Midland, TX.
“Renaissance Square shopping center was an ideal fit for Albanese Cormier Holdings' portfolio of quality assets,” said Wohl. “It is a premier shopping center within the community and offers an excellent array of value-oriented tenants with strong upside potential through the development of excess land. The property's diverse mix of national credit tenants, close proximity to highly trafficked US Highway 287 and its 'main and main' location in southeast Fort Worth make it an optimal long-term investment in today's marketplace.”
Albanese Cormier Holdings currently holds roughly 5 million square feet of 78 assets throughout 22 states. Hanley Investment Group Real Estate Advisors has a $6 billion transaction track record.
“We are seeing a healthy mix of buyer profiles targeting the purchase of shopping centers sized above 50,000 square feet, including institutions, developers and high-net-worth private individuals,” Wohl tells GlobeSt.com. “Assets of this size typically require a higher degree of on-site management, which translates into a larger portion of these buyers being based in Texas, but there is still strong demand from buyers located on the West and East Coasts seeking higher cap rate returns in the high 7% to 8% range.”
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
