Dallas — Sept. 19, 2019 — CBRE announces the sale of a 27-property retail portfolio with locations in eight states in the central U.S., including 14 in Texas. An undisclosed buyer purchased the asset from Dallas-based Rainier Companies.
The properties are located in Texas, Colorado, Kansas, Missouri, Montana, Oklahoma, Utah and Wyoming. The total portfolio included over 677,979 square feet of retail space with a current combined occupancy rate of 92%.
“A portfolio this size with steady income and numerous opportunities for rent increases and redevelopment is unheard of in today’s market,” said Michael Austry, First Vice President, CBRE. “We saw a tremendous amount of interest in the portfolio from both institutional and private buyers.”
Nineteen of the properties are single tenant and eight are multi-tenant with no more than three tenants. The average rent for the portfolio is $6.25 per square foot and $4.24 per square foot after expenses. The portfolio has performed at above 90% occupancy for over 20 years.
“While the appeal for value-add investments is incredibly strong, the challenge with a portfolio of this size and complexity was articulating a plan to investors on how they could unlock value and increase returns," said Jared Aubrey, Senior Vice President, CBRE.
The portfolio is a diverse mix of stable and internet-resistant businesses including:
• Six grocery stores
• Five home improvement stores
• Three auto parts stores
• Three fitness centers
• Three dollar stores
• Two U.S. Post Offices
• One pharmacy
• One gas station
Mr. Austry and Mr. Aubrey with CBRE represented the seller, Rainier Companies, in the transaction.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
