HOUSTON–Faris Lee Investments has completed the $25.1-million sale of Westgate Market, a fully occupied, 80,690-square-foot shopping center in Houston.
The property 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.
Nicholas Coo, Matthew Mousavi and Patrick Luther of Faris Lee Investments represented the seller, a Los Angeles-based private investor. The buyer, an Argentina-based private real estate holding company, represented itself in the transaction. The closing cap rate was 6.85 percent, a record-low cap rate for a health club-anchored retail center sold for in excess of $20 million in the state according to CoStar.
“Our marketing strategy for this asset was to utilize Faris Lee’s platform to identify both domestic and foreign investors who had previously acquired retail property in the Houston market,” says Coo. “We targeted the buyer based on its recent acquisition near Westgate Market. Faris Lee’s international reach speaks to our continued effort to identify the most aggressive investors worldwide.”
Coo added that the team secured a total of five competitive offers contributing to a bid process which resulted in a record-setting price.
Built in 2004 and 2005, Westgate Market is located at 19504 to 19740 Katy Freeway (Interstate 10) and 19950 Restaurant Row, at the intersection of I-10 Frontage Road and Foxlake Drive. 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.