Berlin Interests has broken into the prestigious Preston Hollow neighborhood with a retail purchase.
The Dallas-based firm that specializes in land plays bought the shopping center at 11810 Preston Road, according to a news release. The seller is a partnership controlled by the Dewberry Family, which has owned the property since 1999.
Younger Partners’ Luke Nolan set up the deal. It was a “rare” transaction, since family-owned assets are usually held and passed down from generation to generation, Nolan said.
The 4,800-square-foot retail center, at Preston Road and Forest Lane, is home to a donut shop, a nail salon, a bubble tea shop called Fat Straws and a Jimmy Johns.
The property is across the street from Preston Forest, a shopping center anchored by Whole Foods. A location of locally popular Hudson House recently opened in the center, along with Japanese restaurant Oishii.
The neighborhood is one of Dallas’ most desirable, with an average household income of about $324,000.
Vacancy in the Dallas-Fort Worth retail market has ticked up slightly, but rents are still rising in the market. The vacancy rate was 4.9 percent in the first quarter, compared with 4.7 percent a year ago, according to Partners.
Meanwhile, retail rents continue to rise, especially in the Metroplex’s most prestigious neighborhoods. The average asking rent for the first quarter was $20.49, up from $20.08 per square foot the previous quarter and $19.83 a year prior. In coveted submarkets like North Central Dallas and Central Dallas, which includes Preston Hollow, average rents are nearly $28 per square foot.
Retail real estate is a popular asset class for investors to park money. CoStar reported $426 million in sales volume over the last 12 months at a rate of $209 per square foot.
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