AmREIT, Inc., announced today that it has completed the acquisition of
the Preston Royal Village Shopping Center, located at the northeast and
northwest corners of Preston and Royal in the highly affluent Preston
Hollow submarket of Dallas, Texas.
H. Kerr Taylor, AmREIT’s CEO, commented: “With average household incomes
over $264,000 within a one-mile radius, this retail center has been on
our target list for many years. We are delighted to have been able to
execute this transaction “off-market” directly with Preston Royal Realty
Company, a Texas joint venture, for the acquisition of the Preston Royal
Village Shopping Center. The northwest corner of Preston Royal Village
was developed in 1958 by a partnership that included Henry S. Miller,
Trammell Crow and Bob Cullum, one of the founders of Tom Thumb
supermarket chain. The partnership acquired the northeast corner in
1965, and the same group continued to operate the center until the sale
to AmREIT. We believe this is an excellent Irreplaceable CornerTM
to add to our portfolio, and we look forward to continuing to improve
the property to solidify its position as the preeminent shopping center
in the market.”
Preston Royal Village is a 229,920 square foot grocery-anchored shopping
center that is 97% leased and occupied. The northwest corner of Preston
and Royal is anchored by Tom Thumb (Safeway) and includes tenants such
as Chico's, Barnes & Noble, Pinkberry and Dougherty's Pharmacy (an
original tenant of the shopping center). The northeast corner of Preston
and Royal is unanchored and includes tenants such as Bank of America,
Starbucks, Omaha Steaks, Einstein Bagels, and Fed-Ex/Kinko's. Preston
Royal Village is located at a signalized intersection in an infill
location with high barriers to entry and a dense daytime and nighttime
population, which produces traffic counts of over 68,000 cars per day.
The shopping center benefits from over 97,000 people living within a
three-mile radius of the property, daytime employment within the same
radius of over 131,000 and average household income of over $264,000
within a one-mile radius, according to Sites U.S.A.
The northwest corner was purchased in fee simple while the northeast
corner was purchased as a leasehold estate subject to an underlying
ground lease. The ground lease has 27 years remaining in its term. The
northwest corner was financed with a $23.4 million mortgage at an
interest rate of 3.21%.
About AmREIT, Inc.
AmREIT believes it has one of the highest quality grocery and
drugstore anchored retail portfolios in the REIT sector. AmREIT's-28-year
old established platform has localized acquisition, operation and
redevelopment expertise in the most densely populated and affluent
submarkets of five of the top markets in the US: Houston, Dallas,
San Antonio, Austin and Atlanta. Texas is one of the best
performing economies in the country and 91% of AmREIT's income is
generated by its properties that are located in this market. AmREIT's
core portfolio was 96.8% occupied as of September 30, 2012, and its top
five tenants include Kroger, Landry's, CVS/Pharmacy, H-E-B and Publix.
In addition, its same store Net Operating Income was a peer leading
6% increase in 2011 as compared to 2010. AmREIT has access to an
acquisition pipeline through its value add joint ventures, including two
leading institutional investors who partner with the company as local
experts. AmREIT's shares are traded on the NYSE under the symbol
“AMRE.” For more information, please visit www.amreit.com.
For more information, call Chad C. Braun, AmREIT, at (713) 850-1400.