via Triangle Business Journal by Amanda Hoyle
A Kroger-anchored shopping center at the corner of U.S. 70 and North LaSalle Street in Durham has been sold to a Texas real estate investor for $18.6 million – a 67 percent premium over the price that was paid for the property in 2009.
Epic Real Estate Partners of Austin, Texas, acquired the Durham Festival retail center in Durham from an affiliate of Florida-based Ram Realty Services, according to county records.
Ram had bought the 134,000-square-foot property from a public REIT during the global financial crisis for only $11.1 million and shortly thereafter set about a renovation of the property and expansion of several tenants. The Kroger store also added a fuel station and remodeled its own anchor location.
Durham Festival was 89 percent occupied at the time of sale to Epic, and the shopping center is so far its only real estate asset in North Carolina. Other tenants at the center include Dollar General, Dunkin Donuts, and SunTrust Bank.
“We are excited about this outcome and the positive impact for the fund and for our institutional partners,” stated Ram CEO Casey Cummings in a news release about the deal with Epic. “We were able to deploy capital during a difficult time, allowing us to acquire quality real estate at a discount and create value through the downturn. We are continuing to invest in other exciting opportunities throughout the Triangle.”
Ram Realty Services also announced that it has broken ground on the next phase of development at Pavilion East in Durham. Ram in December had acquired Pavilion East, a 97,000-square-foot office, condo and retail building with a 700-space parking deck. It will be building next a 263-unit luxury apartment development on the property. Pre-leasing for its first units is expected to begin in spring 2017.