NORTH RICHLAND HILLS, Texas – Local investor LFP Properties Inc. has acquired the 16,798-sf Village Square in the Mid-Cities in an off-market transaction, latching onto a value-add property with upside in location, renovation and vacancy.
The 56%-leased retail center is situated on 1.6 acres at 6400 Rufe Snow Dr. in North Richland Hills. The property has direct access to a busy thoroughfare and is shadow-anchored by Big Lots. A Burger Street restaurant with its teal-color roof is a highly visible marker at the entrance to Village Square's 99-space parking lot.
Erik Blais, vice president of Dallas-based Bradford Commercial Real Estate Services, represented the buyer, who is planning to invest upward of $200,000 into modernizing the retail center. A stucco-and-stone facelift is in store for the center's early 1980s façade. Landscaping and exterior lighting also will be upgraded.
The off-market acquisition has gone full circle in less than three months. During the due diligence period, three tenants had renewed and extended their leases.
"That was the dealmaker," Blais emphasizes."My client liked the asset and location, but was hesitating because of upcoming vacancies and month-to-month leases."
Committing to three- to five-year renewals were Great Cuts, Pure Relaxation and NRH Martial Arts. There are six vacancies in Village Square, four of which are contiguous and primed for consolidation into a 3,395-sf block for a large tenant.
"LFP Properties has hopes of adding a national brand to Village Square's local tenant mix," Blais says.
Village Square sits at the heart of a dense retail corridor that's poised to emerge in 30 days from 18 months of roadwork. Rufe Snow Drive's current daily traffic count of 40,000 vehicles and Mid-Cities Boulevard's 27,000-plus are predicted to increase after construction wraps up.
"LFP had been looking for a value-add retail property for several months. Village Square was the right fit at the right time," Blais adds.
Seller Village Square Property LLC was represented by Max Tsai of Agape Commercial Real Estate. Hunter Hayes of NAI Retail has retained the leasing assignment.
January 17, 2019