Cohen & Steers Real Estate Opportunities Fund has acquired Oak Hill Plaza in Austin, Texas, through a joint venture with Trademark Property Company.
Financial terms of the transaction were not disclosed.
The acquisition reflects Cohen & Steers’ strategy of targeting well-occupied shopping centers anchored by necessity-oriented retailers in growing markets where new supply is constrained.
Oak Hill Plaza is 92.5% occupied and includes tenants such as Wells Fargo, The Picklr, Pluckers, Dollar Tree and AutoZone.
The property is located at the intersection of US-290 and State Highway 71 in southwest Austin, where a major roadway improvement project spanning approximately a decade is nearing completion.
The surrounding three-mile area has an estimated population of approximately 60,000, with a median household income of $120,000 and median home value of $688,000.
Cohen & Steers and Trademark see an opportunity to reposition the shopping center as improved roadway access and visibility support changes in the property’s surrounding market.
Trademark has invested in, developed or redeveloped approximately 24 million square feet of mixed-use, multifamily and retail properties valued at $5 billion. Its current operating portfolio includes 19 retail and mixed-use properties totaling more than 10 million square feet.
KEY QUOTE:
“In the decades since Oak Hill Plaza was originally built and tenanted, the intersection where it is situated has transformed from an ordinary country road serving a lightly populated, moderate-income area to a critical gateway leading from downtown Austin to some of the most wealthy suburbs in the city. The property was impaired by the 10-year highway infrastructure project that affected visibility, parking and access to the property. Now, with the completion of the new interchange at the property’s front door, there is an opportunity to transform this center with unique visibility into one that addresses the very affluent populace that funnels past the center every day.”
James S. Corl, Head of the Private Real Estate Group at Cohen & Steers
