About $53M Wins 277,000-SF Power Center

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SHREVEPORT, LA-Within months of its lease-up, the 277,000-sf Kings Crossing Shopping Centre has been sold to a Southern California company. Sources say the 40-acre power center has traded for just south of the $53.31-million ask.

Hart Realty Advisors LLC of Los Angeles got the 7701 Youree Dr. asset at a 6.5% cap rate from Houston-based SDI Realty. The center, built last year, is anchored by a Lowe’s Home Improvement store.

According to Christopher Winters, principal and owner of Colliers International Inc. in Houston, 93% of the roster is made up of national credit tenants. The lineup includes Circuit City, Linens ‘n Things, Starbucks and PetSmart. “It’s a brand-new center and there are no leases rolling for a long time,” says Winters, who represented SDI Realty. “On average, those national larger tenants sign 10- to 15-year lease terms, which provides income stability for the investor.”

Hart Realty beat four would-be buyers for the deal. “They had the best overall package and the best overall offer,” Winters tells GlobeSt.com, adding the entire process from marketing to closing took 150 days. “We had a lot of interest in this property.” Mike Adams of Heritage Moultray Real Estate Services in Yakima, WA represented the buyer.

Winters says the center’s location at State Highway 1 and East 70th Street played a role in its popularity among potential investors. “This intersection in Shreveport is ground zero for retail in the area,” he says. “You have a superior location, great tenants and a brand-new property, attractive for a long-term investor. These types of properties don’t stay on the market for too long.”