Hanley Investment Group has announced the sale of a multi-tenant community shopping center in Houston, Texas, represented by Eric Wohl and Edward Hanley.
The investment group, which also stood as the seller of the NMC Grove Ontario SB retail property at 2200 S. Grove Ave. in Ontario, CA, wound up the sale with a purchase price of $6,850,000, representing $69 per square foot and an 8.36% capitalization rate.
Hanley Investment Group is a boutique retail investment brokerage firm with a three billion dollar transaction track record consisting of specialists delivering services and results.
The commercial property at 9117-9335 Stella Link Drive, called Stella Link Center, is a 99,727-square foot community shopping center anchored by Conn’s, Citi Trends and O’Reilly’s Auto Parts.
The original building was built in 1960 and an additional building was added in 1978.
At the time the shopping center was sold, 76% of the property situated on 7.58 acres was occupied.
“This was a great opportunity for the buyer to purchase a well-located shopping center at only $69 per square foot that sits directly on the on/off ramp of one of Houston’s busiest freeways,” said Wohl. “The property has significant upside through leasing the 24% vacancy and raising the below market rents.”
“The buyers took advantage of attractive new financing in today’s market and obtained Life Insurance Financing with favorable rate and terms giving them a strong cash on cash return,” Wohl added.
“The sale of Stella Link is a prime example of how today’s loan rates and terms are driving buyer demand and providing higher overall returns that were not available the past 2 years for the purchase of retail shopping centers.”
Marvin Stapper of M.M. Stapper Company in Houston represented the buyer, Festival Properties, Inc. of Houston. The seller was Phillips Edison & Company in Cincinnati, Ohio.