California Syndicate Buys 170,000-SF College Retail Center

HOUSTON-Santa Ana, CA-based Triple Net Properties, a 1031 Exchange syndicate, has pulled together about a dozen investors to purchase the newly constructed 169,989-sf Wolf Pen Plaza at Texas Avenue and Holleman Drive, one mile south of Texas A&M University in College Station.

James Bell, an associate in the Houston office of Marcus & Millichap Real Estate Investment Brokerage Co., marketed the property for seller, Zimmer Development of Wilmington, NC. The property was offered at $16 million with a 9.9% cap rate.

Bell tells GlobeSt.com that the seller wanted to exit the property in order to focus on assets in its geographical region. Construction began on the 16-acre Wolf Pen Plaza in 2001. Its occupancy now stands at 95%, with the last tenant moving in less than two months ago. The tenant roster includes names such as Ross Dress For Less, Hobby Lobby, Petco, Shoe Carnival and Goody’s.

Bell, who brokered both sides of the deal, says the property went fast, drawing multiple offers. Letters of intent were acquired within 30 days of its listing and the deal closed within 90 days of going to market. Bell says College Station is a “dynamic secondary market in Texas,” due in part to Texas A&M University having the third-largest undergraduate population in the nation. As for the Wolf Pen’s positioning, it’s at the “best intersection” in College Station, according to Bell. A large format H-E-B is situated right across the street.

Jarrett Adame of Clarke & Wyndham of College Station is managing and leasing the property for the new owners. Adame says that College Station’s retail sector contains 2.5 million sf to three million sf for the city’s 140,000 residents. He points out that occupancies are high at most retail locations in the area, a factor driving up-and-coming market entries by players such as Home Depot.