An Argentina-based private real estate holding company closed on a $25.1 mil Houston retail acquisition. The property is Westgate Market, a fully occupied, 80.7k sf shopping center that was sold by a Los Angeles-based private investor in a deal that worked out to $311/sf.
Built in 2004 and 2005, Westgate Market is located at 19504 to 19740 Katy Fwy (I-10) and 19950 Restaurant Row, at the intersection of I-10 Frontage Rd and Foxlake Dr. It is anchored by a freestanding LA Fitness, and is 91 percent occupied by regional and national credit tenants including The Vitamin Shoppe, Massage Envy, Panera Bread, and Applebee’s among others.
The property is situated on 8.7 acres and includes three separately parcelized pad buildings, enabling the owner to sell off the pads to lower costs and create additional value. The shopping center is shadow-anchored by Ashley Furniture and Mardel Christian and Education and is within a regional retail corridor with nearby retailers including Walmart, Target, Lowe’s, Home Depot and Kohl’s. The location benefits from in excess of 203,000 residents and more than 66,000 day-time employees within a 5-mile radius of the property.
Nicholas Coo, Matthew Mousavi, and Patrick Luther of Faris Lee Investments represented the seller in the transaction. The buyer repped itself in the deal, which had a closing cap rate of 6.85 percent, a record-low cap rate for a health club-anchored retail center sold for in excess of $20 mil in the state, according to CoStar.