Real estate investment firm Pacific Coast Capital Partners LLC andreal estate services provider Dunhill Partners Inc. have closed on the $100 million-plus acquisition of Fountains on the Lake, an open-air retail power center near Houston. The joint-venture partners plan to expand the project with as much as 50,050 sq. ft. of additional retail space.
The joint venture purchased Fountains on the Lake from New Hyde Park, N.Y.-based Kimco Realty Corp. (NYSE: KIM). The 589,201 sq. ft. project consists of 25 buildings, including a theater parcel and eight restaurant and bank parcels, on 74 acres in Stafford, just southwest of Houston. The project is on Houston’s Southwest Freeway (U.S. 59), with an average daily traffic count of 183,000 cars passing the property. Fountains on the Lake was built in 1996 and 1997.
The new owners plan to increase the property’s value by constructing new retail buildings on six of the project’s pad sites and leasing the space, according to Jennifer Diaz, vice president of Pacific Coast Capital Partners.
Randy Fleisher of CB Richard Ellis helped arrange the equity and debt financing with Prudential.
The transaction marks the first joint-venture acquisition for Pacific Coast Capital and Dunhill. Pacific Coast Capital has invested more than $5.3 billion in, and recently has made other Texas acquisitions including a $12 million equity investment in a Plano, Texas office building and the purchase in November of an office building in West Houston.
Dunhill Partners owns and operates 25 properties totaling more than 2.74 million sq. ft., chiefly in Dallas/Ft. Worth, Austin, Houston, Louisiana and Hawaii.