Kimco Sells Stafford Power Center to Dunhill for $102M

Dallas-based Dunhill Partners, a self-proclaimed "aggressive" commercial real estate investment firm, is the new owner of Fountains on the Lake, a 589,201-square-foot open-air shopping center located on US Hwy 59 in Stafford, in the Fort Bend/Sugar Land submarket of Houston, Texas. Randy Fleisher, Managing Director, and Jason Piering, Vice President, both of CB Richard Ellis’ Dallas Capital Markets Debt & Equity Financing group, structured $100 million of equity and acquisition financing for a joint venture on behalf of Dunhill. The deal closed just before the end of 2007. Total transaction price is estimated at $102 million, or approximately $173-per-square-foot. According to CoStar Property Professional, previous owner, Kimco Realty, was marketing small shop space at the 98.6%-occupied shopping center for $18 to $22-per-square-foot, triple net. Built in 1996, the center is built atop a 43-acre plot and features Loews Theatre, Saks Off-Fifth, Borders, Hobby Lobby, Office Max, Bed Bath & Beyond, Sports Authority, Old Navy and Stein Mart as major tenants. Approximately 30 additional acres (partially occupied by a large pond and landscaping) included in the transaction have been earmarked for future development of additional shops and restaurants. Dunhill typically brings together investors in a limited partnership format to purchase assets intended to deliver strong returns for the long term. As a full service brokerage, Dunhill leases and manages its owned assets. For more information see www.houstonrealtyadvisors.net or www.houstonrealtyadvisors.com