A Dallas-area mall sold for $25 million.
A Texas investor bought the 136,000-square-foot center, called Northcrest Village, in Carrollton, Texas, in a 1031 exchange, brokerage Stan Johnson Company said April 21. ALDI and Ace Hardware are the mainstays of the center, which was approximately 85% leased. at the time of sale.
An entity called Awon Phie purchased the mall, according to county property records. Estate agent Rafe Song said The real deal that Awon Phie unloaded his Holiday Inn Express and Suites property in the Corpus Christi area and used that proceeds to buy the mall.
A 1031 exchange allows real estate investors to defer capital gains taxes on the sale of an investment property if the proceeds are soon to be used to make a similar real estate purchase.
The property is at 3044 Old Denton Road in the northwest suburbs of Dallas. The mall has 31 tenants in three buildings, including The UPS Store, O’Reilly Auto Parts and Subway. Four adjoining suites were available to rent at the time of the sale, plus a junior anchor space, according to the announcement.
Margaret Caldwell, Patrick Kelley and Gill Warner of Stan Johnson represented the seller, which was an entity related to Zerby Interests, based in Oklahoma. The private real estate investment firm purchased the Carrollton Center in 2012.
Kelley said in a statement that the bidding process was very competitive with double-digit bids, which showed demand for multi-tenant commercial properties.
Awon Phie may change his investment strategy after facing a lawsuit last year. The US Equal Employment Opportunity Commission sued the entity for violating federal law when it fired a temporary employee because she was pregnant. The entity was ordered to pay $30,000.