Two Houston-based investors, Jivar Foty and Johnny Ganim, have expanded their retail holdings with the acquisition of Square 67, a shopping center located at 2550 Red Bird Lane in Dallas. The transaction was part of a 1031 exchange, according to Marcus & Millichap, the firm that arranged the sale.
Foty is a principal at Rise Group Investments and Ganim is affiliated with Regional Properties Texas. The listing was managed by Marcus & Millichap’s Chris Gaine and Philip Levy. Deed records identify Charles Lucenay, owner of Cornerstone Commercial Properties in Houston, as the seller. Foty and Ganim financed the purchase with an $11.7 million mortgage from Bank of Houston.
Square 67 spans 183,000 square feet across 17 acres and is currently 99 percent occupied. Tenants include Fitness Connection and Family Dollar. The property consists of a 25-suite retail strip situated two miles from the Shops at Redbird, which has been undergoing redevelopment since developer Peter Brodsky acquired it in 2015. The mall now features apartments, educational facilities like a Dallas College workforce center, healthcare services such as a Parkland Health Clinic and UT Southwestern outpost, as well as other amenities.
The recent acquisition follows Foty and Ganim’s purchase earlier this year of Woodforest Shopping Center in Houston—a similar retail property valued at $11.9 million at the time of sale.
Retail real estate has remained strong despite concerns following the Great Financial Crisis that slowed new development projects. Limited new construction has resulted in tight supply and higher rents across many markets.
In Dallas-Fort Worth specifically, average retail rents increased over the past year from $19.78 to $20.28 per square foot while vacancy rates held steady at about 4.8 percent, according to data from Partners Real Estate (https://www.partnersrealestate.com/). This stability has allowed landlords to adapt to closures among large retailers by leasing space to experiential businesses such as gyms or revitalized chains like Barnes & Noble.
“Q&A: Once-doomed retail ‘is not going anywhere'” said one industry observer quoted in related coverage.
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