Two Houston-based investors, Jivar Foty and Johnny Ganim, have expanded their retail property holdings with the acquisition of Square 67, a shopping center located at 2550 Red Bird Lane in Dallas. The purchase was completed as part of a 1031 exchange, according to Marcus & Millichap, the brokerage that arranged the transaction.
Foty is affiliated with Rise Group Investments and Ganim is with Regional Properties Texas. The listing for Square 67 was managed by Chris Gaine and Philip Levy of Marcus & Millichap. Public records indicate that the seller was Charles Lucenay, owner of Cornerstone Commercial Properties based in Houston. The acquisition was financed with an $11.7 million mortgage from Bank of Houston.
Square 67 covers 183,000 square feet on a 17-acre site and is currently 99 percent occupied. Tenants include Fitness Connection and Family Dollar. The property features 25 retail suites and is situated two miles from the Shops at Redbird, a well-known mall in southern Dallas undergoing redevelopment since its purchase by developer Peter Brodsky in 2015. The Shops at Redbird now includes residential units, a workforce center operated by Dallas College, childcare facilities, a Parkland Health Clinic, and a branch of UT Southwestern medical center.
Foty and Ganim’s acquisition follows their recent purchase of Woodforest Shopping Center in Houston over the summer. That property spans 197,000 square feet and was valued at $11.9 million at the time of sale, with a reported occupancy rate of 96 percent.
Retail real estate has remained attractive to investors as limited new construction since the Great Financial Crisis has resulted in higher rents and low vacancy rates. In the Dallas-Fort Worth area, average retail rents have increased from $19.78 to $20.28 per square foot over the past year, according to Partners Real Estate. Vacancy rates are holding steady at 4.8 percent.
The local market’s stability has allowed it to absorb closures by large retailers such as Party City, with spaces being taken over by businesses like gyms and bookstores such as Barnes & Noble.
