posted on January 07, 2011 00:33
Whit Hanks’ West End, a shopping center at what many say is Austin’s most traffic-heavy intersection at North Lamar Boulevard and West Fifth Street, has a new owner.
CB Richard Ellis announced Monday the sale of 500 Lamar to an institutional investor out of Houston. The price and name of buyer, which was self-represented, was not disclosed.
Whit Hanks Properties, the seller, conveyed in early December the title for the 12,795-square-foot center, which sits on about one acre directly across Lamar Boulevard from the Whole Foods Market Inc. headquarters.
In August, the Austin Business Journal reported Hanks listing what he describes as one of his most prized possessions on the real estate market, taking a gamble on buzz among brokers about increased investor interest in Austin’s retail market.
“It has been fascinating to watch the evolution of Sixth and Lamar as a significant retail node in Austin. We find many retailers who only want to locate in this area and the general lack of available space has keep values high for these properties. This was clearly indicated by the level of interest we had on the sale of 500 Lamar,” said Eric DeJernett, senior vice president and head of the CBRE Retail Leasing Group.
The Class A multitenant retail property, built in 1946 and renovated in 1998, is 100 percent occupied with an emphasis on leasing to businesses that primarily attract female shoppers. The largest tenant moved in last year, the women’s athletic-oriented store Title Nine with a 2,016-square-foot spot. Other tenants include Jackson Ruiz Salon, Touch of Sass, The Yogurt Spot, Bella Bridesmaid, Stella Says Go Shoes, California Closets, Extraordinaire and University Federal Credit Union.
Brokers declined to name a price range desired for the property, but the county estimates its value at about $2.5 million, according to the Travis Central Appraisal District.
CBRE’s Private Client Group’s Walter Saad and Cathy Nabours represented Hanks, marketing the property through their database of private and institutional investors.
“This asset was of such high quality and in such a superior location that we thought it appropriate to market it nationally to both institutional and private investors” Nabours said.
Interest level in 500 Lamar was strong with numerous investors ultimately competing for the asset and driving pricing, Saad said.
“It was a pleasure to market such a well maintained and well located asset, and deliver a win-win for both the buyer and the seller,” Saad said.
1/3/11, Francisco Vara-Orta, Austin Business Journal