A Dallas-area shopping center has sold for $25 million.
A Texas investor bought the 136,000-square-foot center, called Northcrest Village, in Carrollton, Texas, in a 1031 exchange, brokerage firm Stan Johnson Company said on April 21. ALDI and Ace Hardware anchor the center, which was about 85 percent leased at the time of the sale.
An entity called Awon Phie purchased the shopping center, according to county property records. Real estate agent Rafe Song told The Real Deal that Awon Phie offloaded its Holiday Inn Express and Suites property in the Corpus Christi area and used those proceeds to purchase the shopping center.
A 1031 exchange allows real estate investors to defer capital gains taxes on the sale of an investment property if the proceeds are soon used to make a similar real estate purchase.
The property is at 3044 Old Denton Road in the suburb northwest of Dallas. The retail center has 31 tenants across three buildings, including The UPS Store, O’Reilly Auto Parts and Subway. Four contiguous suites were available for lease at the time of the sale, plus a junior anchor space, according to the announcement.
Margaret Caldwell, Patrick Kelley and Gill Warner of Stan Johnson represented the seller, which was an entity tied to Oklahoma-based Zerby Interests. The private real estate investment company bought the Carrollton center in 2012.
Kelley said in a statement that the bidding process was highly competitive with double-digit offers, which showed demand for multi-tenant retail properties.
Awon Phie may be switching its investment gears after facing a lawsuit last year. The U.S. Equal Employment Opportunity Commission sued the entity over violating federal law when it fired a temporary employee because she was pregnant. The entity was ordered to pay $30,000.
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