Dallas Retail Deals Attracting Out-of-State Money
Competition is fierce for well-located infill shopping centers (from single pad sites to small strip centers) across Texas and that's catching the eye of outside money. A good example: out-of-state buyers have made up 12 of EDGE-CM's 18 deals year-to-date (totaling $75M), says principal Brandon Beeson (right, with principal Mart Martindale). A good example is the sale of Parkside Shopping Center at 13881 Midway Rd and 13901 Midway Rd in Farmers Branch to a California buyer, which owns a couple of other regional retail projects.
The fully occupied 26k SF multi-tenant shopping center (which generated 15 offers) is in a prime infill location, says Brandon (who repped the seller, a local investment company, with colleague Wilson Stafford). Single-tenant pad site properties and dual-tenant deals (like a quick-service restaurant and a mattress group) are popping up all over the place to fill in desirable locations that are already approaching their max for development, Brandon tells us.
A trickle down effect from getting priced out of deals (and lack of deals, in general) is the move to buy in secondary and tertiary markets, Brandon tells us. Markets like Killeen, although smaller, are very stable and growing. Brandon and Wilson also sold a 16k SF McAlister’s Deli portfolio with sites in Waco, Port Arthur, and Amarillo (and a fourth in Shawnee, Okla.) to a REIT. They also sold one in Sherman to a 1031 buyer. (Not to change the subject, but Mart and Wilson also sold three Dallas boutique Class-A multifamily assets with low cap rates to high net worth 1031—you guessed it—out-of-state buyers this summer.)
