Houston Retail Center Trades with Help from HFF

By Mihaela Coste

First Colony Commons in Sugar Land, Texas

HFF recently announced that it has closed the sale of First Colony Commons, a 410,121-square-foot retail center with multiple big-box tenants in the Houston suburb of Sugar Land, Texas. The company represented the seller, Covington Realty Partners, as well as the new owner, TriGate Capital, in securing a five-year acquisition loan in the amount of $38.2 million.

Jim Curtin, director of HFF, led the debt placement team in securing the floating-rate, non-recourse loan with a five-year extension option through NexBank SSB. The investment sales team was led by Rusty Tamlyn and Ryan West, senior managing directors of the company’s Houston office.

First Colony Commons is situated on a 37.8-acre site at 15201-15555 Southwest Freeway in Sugar Land, on the southeast corner of US Route 59 and Williams Trace Boulevard, approximately 20 miles from Downtown Houston.

At the time of the transaction, the asset built in 1992 was 99 percent leased to a lineup of national and regional retailers including Home Depot, Babies’R’Us, Office Depot, Michaels, Conn’s and Tuesday Morning.

“This power center had a lot of moving parts, which presented challenges for buyers and lenders,” said Tamlyn in a prepared statement.  “TriGate was able to navigate through the issues and will have potential value-add opportunities down the road.”

Image courtesy of Covington Realty Partners