One of the last land deal financed in 2007 before the capital markets failed was Dalrock Crossing in Rowlett, Texas.
A developer had contracted for the seven acre tract at the SEC of Dalrock and 66 in Rowlett Texas with hopes of selling several pad sites and creating 30,000 plus square feet of retail space. However the buying entity did not have the capital to close the transaction.CenterPoint was able to identify a joint venture partner to assist in making the necessary capital contribution so the transaction could be funded and closed on time.
Soon after closing, the real estate market collapsed and there was little activity in the development sector. Few retailers were expanding. However, CenterPoint was able to successfully aid in modifying the cross operating agreement with the owner of the adjacent 60,000 square foot vacant Super 1 Foods building so the developers could modify some drive lanes and sell two tracts, one to CVS pharmacy, the other to Whataburger.
The major hurdle in erecting a new shopping strip adjacent to the two pad users was the unknown future use of the anchor building next door.Non-traditional retail users threatened the viability of the strip development.Fortunately, the carefully negotiated cross operating agreement restricted many of the “noxious” uses and limited the usability of the box.Using its deep rooted client relationships, CenterPoint arranged for a purchase of the anchor building, and took control of its clients destiny going forward.
OVERCOMING THE ODDS IN THE LONG RUN
With command of the major piece of the development thru separate unrelated entities, the entire development began to come together. Several interested parties surfaced, but the transactions had foreseen challenges that CenterPoint advised its clients to be wary of. Several of those faded, and patience finally paid off in 2014. CenterPoint sold the anchor building to Wal-Mart, which opened a neighborhood market early in 2015.
By mid 2016, CenterPoint had pre-leased over 13,000 sf of retail with pending tenants for an additional 6,000 sf of space, paving the way for to start construction. Engineering was able to pushed thru the city and ground breaking finally occurred in late 2016.
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