TYLER, Texas – In a true Texas Two-Step, NewQuest has brokered the sale of the Shops at Shiloh in Smith County after pushing occupancy to 95% for its Houston-based developer.
The just-sold retail center, totaling 14,927 sf, is anchored by a CEFCO convenience store and gas station. Developed in 2008, the Shops at Shiloh is situated at the intersection of Troup Highway/TX 110 and Shiloh Road in Tyler, which is close to the University of Texas’ local campus and the county seat’s regional medical hub.
“We took on a half-leased project in a tertiary market and got it to 95% before we brought it to market. There were four or five offers because of the attractive cap rate and upside in future leasing,” says Austen Baldridge, senior vice president of Houston-based NewQuest. He partnered with Marc Peeler, formerly with the firm, on the dual-pronged assignment.
The Shops at Shiloh has been sold to Yasin Ventures LLC from Dallas/Fort Worth. Eliud Sangabriel of SVN Trinity Advisors represented the 1031 Exchange buyer.
Situated on 2.36 acres, the Shops at Shiloh is adjacent to Chase Bank and Whataburger and faces a 190,000-sf Walmart Supercenter along the city’s seven-lane main thoroughfare. In addition to CEFCO, the tenant roster includes Shiloh Family Dental, Talis Healthcare, Great Clips and Spherion Staffing and Recruiting.
“It’s a good healthy tenant mix of neighborhood essential services,” Baldridge says. “The anchor is investment-grade with plenty of term left on its lease.”
Based in Temple, Texas, CEFCO operates nearly 200 stores in its home state, Mississippi, Alabama and Florida. It’s ranked at the 40th largest company-operated chain in its retail category.
“The Shops at Shiloh offers some safe upside for the buyer when several leases roll in one or two years. It’s a good mark-to-market opportunity for the new owner,” Baldridge says.
The transaction closes out a 16-year hold for the developer, who has parted with its only asset in North Texas. The NewQuest team had whittled the vacancy to 750 sf prior to the sale.
“We’ve represented the seller often with acquisitions and dispositions in Houston,” Baldridge says. “When the hold strategy changed for the Tyler property, the client felt NewQuest was the best fit for the assignment because of its leasing and investment sales platforms.”
SOUTH TEXAS LEASE
Zano Banquet Hall has leased 5,180 sf of retail space in Windcliff Town Center, located at the intersection of Jones and Cypress North Houston roads, Houston, from NewQuest. Lara Lee LaMendola of NewQuest represented the landlord. Frankie English of Texas CRES represented the tenant.
