Information on the Target

Harbert United States Real Estate Fund VI, L.P. ("HUSREF VI") has successfully acquired Lewisville Towne Crossing, a premier retail power center spanning 232,492 square feet. This Class A property was developed in phases between 2008 and 2016 and is strategically located in Lewisville, Texas, a suburb of the Dallas-Fort Worth metropolitan area.

At the time of acquisition, Lewisville Towne Crossing was 96.8% leased, featuring a strong roster of national retailers including Super Target (not owned), Studio Movie Grill, 24 Hour Fitness, and Petsmart. With thirty-one tenants at closing, a significant 87% of the rent roll has a remaining lease term of five years or more, ensuring robust and stable cash flow for the investor.

Industry Overview in Texas

The retail industry in Texas has shown resilience and growth, benefiting from the state's favorable economic conditions and population growth. The state has consistently ranked among the top in the nation for job creation, attracting both businesses and consumers alike. As a result, retail centers have thrived in markets with strong demographic fundamentals.

The Dallas-Fort Worth area, in particular, has experienced significant retail expansion, driven by an ever-increasing population and a diverse economic base. The region's expansion has led to higher disposable incomes and increased consumer spending, making it an attractive location for retail investments.

Moreover, the emergence of e-commerce has influenced traditional retailing, prompting landlords to curate diverse tenant mixes that include dining, entertainment, and essential services. This evolution in retail has further solidified the need for well-located power centers that can generate foot traffic and provide accessibility to consumers.

In the suburban areas of Dallas-Fort Worth, retail power centers such as Lewisville Towne Crossing have the added advantage of catering to local communities, utilizing their prime locations to adapt to changing consumer preferences while maintaining strong tenant demand.

The Rationale Behind the Deal

HUSREF VI identified Lewisville Towne Crossing as an attractive acquisition opportunity due to several key factors: the strengthening and improving demographic and economic profile of the surrounding area, the quality and reputation of the tenants, and the strong fundamentals of the greater Dallas-Fort Worth market.

The investment also warranted attention due to its minimal capital exposure relative to the expected return profile, thereby offering a favorable risk-reward scenario amidst a thriving market.

Information About the Investor

Harbert United States Real Estate Fund VI, L.P. is a leading real estate investment firm specializing in value-added real estate transactions. HUSREF VI has a track record of successfully acquiring and managing various commercial properties across the United States, focusing primarily on the retail and multifamily sectors. The firm employs a strategic investment approach that emphasizes market fundamentals and tenant quality to generate sustainable returns for its investors.

With considerable experience in identifying and operationalizing attractive real estate opportunities, HUSREF VI leverages its insights into demographic trends and economic conditions to make informed investment decisions, further enhancing its reputation in the real estate market.

View of Dealert

The acquisition of Lewisville Towne Crossing by HUSREF VI appears to be a commendable investment move, given the strong retail fundamentals of the Dallas-Fort Worth area. The property offers a solid mix of national tenants, which is essential for ensuring long-term stability and cash flow.

Moreover, the high occupancy rate and the remaining lease terms of the tenants signal a robust cash flow stream that minimizes risk for HUSREF VI. These characteristics enhance the attractiveness of the investment, providing a positive outlook for sustained performance.

The strategic location of the property, combined with the significant traffic exposure at the intersection of SH-121 and Josey Lane, provides additional confidence in the asset's long-term viability and potential for value appreciation.

Overall, considering the favorable economic outlook and the strategic planning executed by HUSREF VI, this acquisition could very well turn out to be a beneficial move for the fund and its investors.

View Original Article