One Down, One to Go in Texas Exit

ADDISON, TX-Setting up a Texas exit, an investment group from Southern California has sold one retail center and has a purchase agreement for its last asset. The 32,114-sf Addison Plaza has passed to a Denver-area private investor while the 52,000-sf Canyon Creek is poised to roll into the portfolio of Dallas-based Dunhill Partners.

In both cases, LS Realty Group from Sherman Oaks, CA has landed buyers without taking the assets to market, says its principal Timothy Siegel. Addison Plaza, delivering in 2000 at 3711-771 Belt Line Rd., was 90% leased when it passed to a buyer brought to the table by Jason Vitorino in the Dallas and Chris Sands in the Los Angeles office of Marcus & Millichap Real Estate Investment Brokerage Co.

The seller says the 3.6-acre Addison Plaza’s sale price is off limits. Prices of retail properties can vary wildly, but local market watchers say the going rate, on average, in the heart of Addison could produce $250 per sf at the closing table for a comparable center.

Siegel says Canyon Creek at 200-348 W. Campbell Rd. in Richardson is working through escrow, but should be closing next month. LS Realty bought Canyon Creek in 2004 and Addison Plaza in September 2005.

LS Realty plans to do a 1031 exchange into commercial deeds in its own market. “We will accept a little bit lower of a cap rate, but will have ease of management,” Siegel tells GlobeSt.com.

Siegel says Addison Plaza has no lease rollovers this year or next. Its roster of national and regional tenants includes Chipotle Mexican Grill, Dickies BBQ and Coldstone Creamery. “It’s a great asset for an absentee owner,” he explains, “but it just didn’t meet with our objectives to move closer to California.”