Sterling Centrecorp Grabs 42,024-SF Shopping Center

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PLANO, TX-After catching 15 offers in 20 days, the 42,024-sf Coit Crossing has passed to a US subsidiary of Sterling Centrecorp Inc. in an all-cash trade for close to the $5.4-million ask. The primary hurdle to overcome was related to dry cleaners space in the class A suburban center.

“It would have been a really quick close otherwise,” Jennifer Pierson, first vice president with CB Richard Ellis Inc.’s Dallas office, explains to GlobeSt.com. The hurdle, as Texas brokers are well aware, is due to environmental regulations that take awhile to clear.

The buyer, though, now controls the 3825 Spring Creek Parkway property in Plano, getting upside in a 61% occupancy at a three-year-old center. The 11-tenant roster is a mix of “mom and pop” shops with leases averaging five years. “They’ve got a good lineup, not too much expiring in any one year,” says Pierson, the deal’s sole broker.

Sterling Centrecorp bought the two-building asset, positioned on 4.5 acres at the corner of Coit Road and Spring Creek Parkway, from its Dallas developer, Spring Creek Retail Development Ltd. “They’re very good buyers,” Pierson says, “with a high probability of performing.”

“Coit Crossing is strategically located at one of the busiest intersections in Plano and provides and excellent opportunity through value creation through the lease up of the existing vacant space,” A. David Kosoy, co-chairman and co-CEO of Sterling Centrecorp, says in a press release. The Markham, Ontario-headquartered Sterling Centrecorp made the close with first-mortgage financing totaling $5.2 million.