A Florida-based REIT has expanded its shopping center portfolio in Central Texas with an H-E-B-anchored retail property north of Austin.
Regency Centers acquired the 218,000-square-foot University Commons shopping center in Round Rock from LaSalle Investment Management, the Austin Business Journal reported. CBRE facilitated the transaction on behalf of LaSalle, with Regency forgoing broker representation. The purchase price was not disclosed.
The acquisition aligns with Regency’s focus on well-established retail centers in high-demand locations, which includes three other H-E-B-anchored centers in the Austin metro.
Situated on a 33-acre site at 200 University Boulevard, the shopping center benefits from its proximity to major retail destinations, including Round Rock Premium Outlets to the north and an IKEA-anchored center to the south.
“Opportunities to acquire dominant H-E-B centers in Austin are extremely rare,” said Barry Argalas, Regency’s managing director of transactions. “University Commons aligns perfectly with our strategy of owning dominant centers with sustainable competitive advantages; both are key for long-term success and enhancing merchandising via our experienced Texas platform.”
The property is 94 percent leased and includes tenants such as T-Mobile, AT&T, Mattress Firm and Summer Moon Coffee. The center has seven available spaces ranging from 1,500 to 2,853 square feet, with H-E-B occupying about 131,000 square feet of the property, according to a brochure. The other tenants account for 71,250 square feet.
Regency’s Austin-area properties hold a 98 percent lease rate, according to Patrick Krejs, the firm’s managing director.
San Antonio-based H-E-B has a real estate playbook that industry insiders follow closely. Its stores often lay the groundwork for other retail centers and multifamily developments to crop up. One example is Read King Properties’ $60 million, 336-unit H-E-B-anchored apartment complex in Humble. It is the third such development for Read King, which is otherwise known as a retail developer.
— Andrew Terrell
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