Hines Acquires a Portion of The Rim Outdoor Retail Center
- Feb 25, 2014
The Northwest San Antonio is developing at very high speed. The latest acquisition is evidence of high interest coming from the investors: Hines Global REIT Inc. announced it purchased the retail interest of Georgia-based Thomas Land & Development in The Rim, the largest outdoor retail center in Texas.
The Rim has been designed to be constructed in five phases: The first four were completed between 2006 and 2008, and the last phase is scheduled to be completed by the end of 2015. The complex, which encompasses 1.8 million square feet located at the intersection of Interstate 10 and Highway 1604, is currently 99.5 percent leased to popular brands including Best Buy, Dick’s Sporting Goods, JC Penney, Nordstrom Rack, Saks Off Fifth and TJ Maxx.
“We were attracted to this property due to the desirable location in one of the strongest growth markets in the U.S. The strong tenant base, which has historically exceeded 98 percent occupancy since opening in 2006, proves it’s one of the best centers in Texas,” said Sherri Schugart, president & CEO of Hines Global REIT, in a press statement.
Hines Global REIT invested in the acquisition of 796,445 square feet of The Rim, plus rights to 259,656 square feet currently under construction, with completion set for Dec. 31, 2014, as well as the right to purchase an additional 97,000 square feet expected to be built by Dec. 31, 2015. The parcels left out of the transaction entitle 647,174 square feet and comprise a few other tenants, plus some that are individually owned by Bass Pro Shops, Lowe’s, Santikos Palladium Theatres and Target.
The seller was represented by Eastdil Secured. The purchase price has not been revealed by the buyer; however, Hines reported it in a filing with the Securities and Exchange Commission as $176.4 million. The property manager of the newly acquired retail space will be Hines’ Southwest regional office.
“The Rim is the fourth retail asset acquired by Hines Global REIT and is the largest to date. This acquisition is a great accomplishment and a great addition to our quality portfolio of retail centers. We are grateful to Thomas Land & Development and Eastdil for their efforts in bringing this transaction to a close,” added Kenton McKeehan, managing director at Hines.
Photo courtesy of Hines.