Inland Western, McCann Realty Acquire, Feeding Expansionist Goals
- Jul 14, 2011
The Sawyer Heights Village shopping center, located just outside the Central Business District in Houston, traded hands this week. The buyer, a joint venture of Inland Western Retail Real Estate Trust Inc. and Canada-based RioCan Real Estate Investment Trust, paid $35 million for the 107,626-square-foot power center.
Located within walking distance of the Houston CBD and Midtown—where the daytime population exceeds 220,000—Sawyer Heights Village is currently anchored by Staples and PetSmart and shadow-anchored by Target. The property is now an important part of Inland Western’s portfolio, bringing its presence in the Houston market to more than 1.5 million square feet under management. At the state level, Inland Western now has more than 9.6 million square feet under management.
Also changing owners this week is Estancia at Shadowlake, the 324-unit garden-style community in the Alief/Westchase submarket of metropolitan Houston. The Class A community is located off Westheimer Road, offering ease of access to the Sam Houston Tollway and I-10. Built in 2005, the three-story building offers a mix of one-, two- and three-bedroom apartments ranging in size from 740 to 1,300 square feet. Rents start at $800 and go as high as $1,700 per month.
Buyer McCann Realty Partners L.L.C.’s main goal is to acquire, develop and manage garden apartment communities in the Southeast, Southwest and adjacent regions. Formed in October 2004, the company has acquired 17 apartment communities so far, totaling more than 4,100 units in transactions valued at nearly $325 million. Declared John McCann of McCann Realty Partners, “We liked the value we saw in Estancia at Shadowlake, which we acquired well below replacement cost with attractive Freddie Mac debt and the prospect for solid rent growth.” A seven-year Freddie Mac fixed-rate loan with a rate of 4.42 percent originated by Wells Fargo Multifamily Capital partially funded the acquisition.