NewQuest Properties Arranges Sale of Retail Center Near Fort Bliss to Redevelopment Pro in Houston
September 30, 2021
HOUSTON – NewQuest Properties Investment Sales team has facilitated the sale of Sunrise Village Center near Fort Bliss in El Paso, Texas, to a major private investor from Houston who specializes in redevelopment.
JMK5 Holdings LLC has snagged a 186,880-sf retail project straddling 15 acres in the city’s primary retail corridor. The seller, T-Sunrise Village Ltd., is a family trust and the original owner of the center at 8500 Dyer St., which was completed in 1957.
“The patriarchs and heirs in the U.S. and Mexico felt it was the right time to sell,” says David Luther, executive vice president of NewQuest. He and colleagues, Kelley Workman, vice president, and Dakota Workman, associate, brokered both sides of the transaction.
The 44%-leased Sunrise Village Center drew five to seven offers within a swift two-day marketing period. JMK5 took the win with an all-cash offer, closing the deal 60 days later.
The NewQuest sales team is proactively extending its reach far beyond Greater Houston. “We are cracking open opportunities in other markets. This was an attractive investment opportunity and it was priced right for redevelopment,” Luther says.
Sunrise Village Center primarily serves military families, many of whom live in the immediate area. JMK5’s new holding is less than four miles away from Fort Bliss.
“This is the buyer’s MO. He buys properties that are less than 50% occupied in strong locations, redevelops them and increases occupancy to 100%,” says Kelley Workman. “He put his redevelopment strategy into motion on the day he closed.”
Sunrise Village Center’s tenant mix includes Dollar General, Sally’s Beauty Supply, Talecris Plasma Resources, Idea Public School and a WIC clinic. New to the project is Black Fridays Daily Discount Store.
“Black Fridays is a newer concept that’s perfect for military demographics, which is the buyer’s target market,” Dakota Workman says. “The store is always busy.”
Skyrocketing construction costs, particularly steel, for ground-up development are fueling private investors’ heightened interest in redevelopment. In-place cash flows, as with Sunrise Village Center, are enticing incentives.
“Existing projects at well below replacement cost in today’s market are very attractive propositions,” Luther says. “We are seeking redevelopment opportunities in good markets throughout Texas for our clients, buyers and sellers alike.”
Check out other NewQuest Properties investment sales opportunities here.
