BlueGate Partners, LLC and its affiliates (collectively “BlueGate”) sold the fee simple interest in Baybrook Village Shopping Center to O’Connor Capital for $43.75 million. Baybrook Village totals approximately 228,577 square feet (“sf”) of Class “A” power center retail space, the adjacent Southbrook Shopping Center that contains two retail ground leases totaling 221,002 sf of land area and 49,811 sf of improved building area and a 2.15 acre development parcel (collectively the “Property”).
The Property was located approximately 20 miles southeast of downtown Houston, in the Houston- Sugar Land-Baytown MSA (the “Houston MSA”), the fifth largest MSA in the U.S. The Property was situated at the southeast corner of West Bay Area Boulevard and Glenwest Drive in Webster, Harris County, Texas adjacent to the approximately 1.24 million sf Baybrook Mall. The Baybrook Mall was the third largest mall in the state of Texas at the time of sale and had a reported occupancy of approximately 93 percent and 2010 in-line comparable sales in excess of $625 per sf.
The Property was anchored by Wells Fargo, Sports Authority, Starbuck’s, Jos. A Banks, McDonald’s, Jo-Ann Fabrics, Ross Dress-For-Less and PetsMart and as of May 2011 was 96.8 percent leased with limited near term rollover. National tenants at the Property accounted for approximately 85 percent of the total leasable area as well as 100 percent of the ground leases.