Investors continue to snag retail assets in North Texas, this time in a north Dallas suburb.
A venture of Grapevine-based 2GR Equity and Dallas-based Shop Development acquired the 177,000-square-foot Promenade North Shopping Center, at 500-980 North Coit Road, in Richardson, the Dallas Morning News reported. Terms of the deal were not disclosed.
The venture aims to perform an extensive renovation of the 12-acre property over the next two years, with upgrades to building exteriors, landscaping, parking lots, signage and lighting.
The shopping center has an occupancy rate of 70 percent. Its tenants include Verizon, Papa Murphy’s, WingStop and Rockler Woodworking & Hardware. About 60,000 car trips a day pass the intersection of Coit and Arapaho roads, where the property is located, according to 2GR.
The acquisition prolongs a successful partnership between 2GR and Shop Development. The firms renovated the Hillcrest Village shopping center at 6959 Arapaho Road in Far North Dallas, as well as the Southlake Marketplace, in a wealthy suburb northwest of Dallas.
“This is 2GR’s third investment with Shop, and they have overperformed on the first two, which had similar business plans,” 2GR principal Isaac Gregory told the outlet. “We are excited about the potential of Promenade North and believe this asset is long overdue for a repositioning, given its location and visibility.”
North Texas’ retail sector has seen an influx of investment activity over the past year. As of November, investors poured more than $1.3 billion into Dallas-Fort Worth shopping centers. Just 4.3 percent of retail space in the region was vacant at the end of the third quarter, and about 1.2 million square feet of retail space was leased, outweighing the 915,600 square feet of new supply.
Some properties to change hands include the Marketplace at Highland Village in Denton County and the Park Village shopping center in Southlake.