$271M sale of city’s largest shopping center closes

A large portion of Southpark Meadows shopping center, the biggest development of its kind in the Austin area, has changed hands. Mega-investor The Blackstone Group purchased Phases I and II of the South Austin regional shopping center — about 910,000 square feet — from Canada-based RioCan real estate investment trust.

The deal — part of a $1.9 billion, 50-property portfolio sale — recently closed after being announced last year.

Data provided by Real Capital Analytics, a global data company, indicates an allocation of $270.8 million for the Southpark Meadows portion of the deal. As part of the trade, Blackstone (NYSE: BX) also acquired nearby Stassney Heights, a 102,916-square-foot strip center. A value of $30.7 million was attributed to Stassney Heights by Real Capital Analytics. Those number equate to $299 per square foot for all three properties.

Southpark Meadows is a large outdoor retail center at the southwest corner of I-35 and… more.

Southpark Meadows is a large outdoor retail center at the southwest corner of I-35 and… more.

Collectively, Southpark Meadows I, II and III represent the largest shopping center in Austin with 1.52 million square feet, according to Austin Business research — subscribers can see the entire list below. It was built originally by Austin-based Endeavor Real Estate Group and is located at the southwest corner of I-35 and Slaughter Lane.

Phases I and II include Walmart, PetSmart, Hobby Lobby, Best Buy and Sports Authority, which is closing due to corporate bankruptcy. Phase III — mostly the southern portion of the center — is owned by another entity and was not part of the deal.

Stassney Heights is occupied primarily by Lowe’s Home Improvement and Fiesta Mart Inc.

Excel Trust, an affiliate of Blackstone, handles the property management for Southpark Meadows and Stassney Heights.

Source:

Austin Business Journal