HFF closes sale of and secures $38.2 million financing for suburban retail center near Houston
HOUSTON, TX – April 17, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the sale of and secured $38.2 million in acquisition financing for First Colony Commons, a 410,121-square-foot retail center with multiple big box tenants in the Houston suburb of Sugar Land, Texas.
HFF represented the seller, Covington Realty Partners. TriGate Capital (TriGate) purchased the property for an undisclosed price. Additionally, working on behalf of the new owner, HFF placed the five-year, floating-rate, non-recourse loan with a five-year extension option with NexBank SSB.
First Colony Commons is 99 percent leased to a variety of big box and national retailers, including The Home Depot, Babies"R”Us, Office Depot, Michaels, Conn’s and Tuesday Morning. Situated on 37.85 acres at 15201-15555 Southwest Freeway, the center is at the highly visible intersection of Highway 59/Interstate 69 and Williams Trace Boulevard, which is accessible to approximately 239,321 vehicles per day. The property is just north of the intersection of Highways 59 and 6, the two main transportation corridors that link Houston to Sugar Land. Sugar Land is an affluent community 20 miles from downtown Houston and in the heart of Fort Bend County, the sixth fastest-growing county in the country. More than 85,000 residents earning an average annual household income of more than $134,000 live within a three-mile radius of First Colony Commons.
HFF’s investment sales team was led by senior managing directors Rusty Tamlyn and Ryan West.
HFF’s debt placement team was led by director Jim Curtin.
“This power center had a lot of moving parts, which presented challenges for buyers and lenders,” Tamlyn said. “TriGate was able to navigate through the issues and will have potential value add opportunities down the road.”
About Covington Realty Partners
Founded in 2005, Covington Realty Partners is a diversified, Chicago-based real estate investment company, management company and developer. Covington’s conservative investor-first philosophy is to seek capital preservation, increased cash flow and add value continuously to the properties it co-owns with its sponsored partnerships. Covington is experienced in working with a variety of clients including individual investors, mid-size companies and large institutional investors. The company acquires and manages (asset management and property management) Class A commercial buildings and multi-family residential rental communities in primary markets and premier locations in secondary markets. Covington has acquired over $3 billion of real estate assets throughout the U.S. Its management team has developed and constructed 89 multifamily residential communities totaling 16,000 rental units, estimated to be worth in excess of $2 billion. Covington currently owns and/or manages over 2.7 million square feet of retail and commercial property in 11 states, with more than 290 tenants. Visit covingtonrealtypartners.com.
TriGate Capital is a market leading real estate private equity firm based in Dallas, Texas, focused on recapitalizing and repositioning real estate assets and companies. TriGate i) acquires real estate assets that are in need of capital or management focus; ii) provides capital for the recapitalization of commercial real estate assets and companies; iii) acquires non-performing commercial real estate loans; and iv) capitalizes platforms with quality operators that are focused on a specific investment strategy. TriGate has purchased 13 million square feet of properties to date and has approximately $825 million of equity capital under management. The firm manages three fully discretionary value add real estate funds, which are the vehicles through which TriGate conducts its investment strategy. Funds I and II are fully invested, and TriGate is actively pursuing its strategy via Fund III, which currently has significant equity capital available for new investment.
Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp, a Texas licensed real estate broker.