SUGAR LAND, TEXAS — TriGate Capital, a Dallas-based real estate private equity firm, has purchased First Colony Commons, a 410,121-square-foot retail center in the Houston suburb of Sugar Land. Covington Realty Partners, a Chicago-based investment firm that specializes in Class A assets in primary markets, sold the property.
HFF arranged the $38.2 million in acquisition financing for the property and represented both parties in the sales transaction.
Nexbank SSB provided the floating-rate, non-recourse loan for the property, which features a 12-year term and a five-year extension option.
Situated on 37.8 acres at 15201-15555 Southwest Freeway near Interstate 69 on Houston’s southwestern outskirts, the center was 99 percent leased at the time of sale. Tenants include The Home Depot, Tuesday Morning, Babies “R” Us and Office Depot.
More than 85,000 residents earning an average annual household income of $134,000 or more live within three miles of First Colony Commons.
Rusty Tamlyn and Ryan West of HFF headed the investment sales effort. Jim Curtin of HFF led the debt placement transaction.
“This power center had a lot of moving parts, which presented challenges for buyers and lenders,” says Tamlyn. “TriGate was able to navigate through the issues and will have potential value-add opportunities down the road.”
— Taylor Williams