Sunset Plaza, 92k sf shopping center in San Angelo, TX, was acquired by a private investor from Mexico City, Mexico. The property, situated on 8.42 acres at 4157 - 4219 Sunset Drive, is shadow anchored by Target and features national retailers such as Ross Dress for Less, HomeGoods and Petco.
The center features a tenant mix that is 98% national retailers and also includes Five Below, Bath & Body Works, Buckle and GameStop. Sunset Plaza sits across from Sunset Mall, a regional shopping destination anchored by Dillard’s, JC Penney, Marshalls and Murdoch’s, which draws more than two million annual visitors.
According to Csenar, in recent years, the center has undergone a notable retail evolution as Bath & Body Works, Five Below, HomeGoods, and Buckle replaced former tenants Bed Bath & Beyond, Kirkland’s Home, Rue 21 and Versona Accessories. The owner successfully repositioned the property by securing stronger, value oriented and experience driven retailers, a transition made possible by the center’s strong location and established regional draw.
Target, which is not part of this sale, has operated at this site for more than 26 years and completed a major remodel in 2018, further reinforcing the long term stability of the trade area.
Sunset Plaza is the only Target anchored power center within a 95 mile radius and ranks among the top 20% most trafficked shopping centers in the United States, according to Placer.ai. The property benefits from strong visibility along Loop 306 and Sherwood Way/US Route 67 and has demonstrated consistent leasing momentum, resulting in a weighted average lease term of 6.5 years, Wood reports. Recent leases and extensions include Petco, Ross Dress for Less, HomeGoods, Bath & Body Works, Buckle, GameStop and Five Below.
Garrett Wood, Kevin Fryman and Lee Csenar with Hanley Investment Group Real Estate Advisors, in association with ParaSell Inc, represented the seller, a private investor from Orange County. The buyer repped themselves.
“Sunset Plaza’s strong national tenant roster, long term operating history, and regional dominance made it a highly attractive investment opportunity,” Fryman said. “With virtually no competition within a 95 mile radius and Target successfully operating at this location for more than 26 years, the property provides stable cash flow and long term growth potential.”
San Angelo serves as the center of commerce, government, medicine and higher education in West Central Texas. The city is home to Goodfellow Air Force Base, which has a population of 27,000 and contributes $3.1 bil in annual economic impact, and Angelo State University, a Texas Tech University System institution with more than 11,250 students and $208 mil in annual economic impact. San Angelo Regional Airport provides daily direct flights to Dallas/Fort Worth International Airport on American Airlines.
“San Angelo’s diverse economic base and strong regional draw support the long term viability of Sunset Plaza,” said Wood. “Historically, junior box anchored shopping centers were primarily acquired by public REITs, but today we are seeing more private investors enter this segment of the market. Properties like Sunset Plaza, with its stable mix of value oriented retailers, regional dominance and favorable demographics, align with current demand for retail investments that provide reliable cash flow and long term growth potential.”
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