FRISCO, Texas — Editor's note: This article was originally published in the Dallas Business Journal here.
A Frisco-based investment group has purchased a two-building shopping center in its hometown, just west of Dallas North Tollway.
3 Pillars Equity bought The Shops at the Gate from Dubai-based Invest Group Overseas on Jan. 30, according to Collin County records.
Financial terms were not disclosed, but county documents show the purchase of The Shops at the Gate was financed with a $4.5 million loan.
The 16,000-square-foot retail hub is fully leased and part of a $1 billion mixed-use project in Frisco called The Gate, which is situated near the Dallas Cowboys headquarters and practice facility, The Star.
The sale of the prominent shopping center comes as the fast-growing city of Frisco braces for another wave of development, including the massive $10 billion Fields project that includes retail, entertainment, and office space.
"This acquisition adds to our growing portfolio of commercial property investments and fits well with our strategy of maximizing long-term value for our investors," Yegnesh Ragi, co-founder of 3 Pillars Equity, said in a statement.
Occupants in the buildings, which sit on nearly 2 acres, include Modern Skin Med Spa, On the Marquee, Christie’s and various eateries.
The deal was brokered by the Dallas branch of Avison Young, a Toronto-based commercial real estate firm that recently reached a deal to restructure its debt.
"Located just north of the Dallas Cowboy’s Star mixed-use development, this property is key to Frisco's continued meteoric growth, including the new Universal Studios development, numerous corporate relocations, and an influx of highly educated, high-income residents," Mike Kennedy, a principal at Avison Young, said in a statement.
Darrell Betts, another principal at Avison Young, said in the same statement that his team worked closely with the seller to show the "huge upside of the retail center." The larger Gate development is slated to include more than 1 million square feet of office and commercial space.
Shopping centers have been changing hands at a modest clip in the Dallas area. Commercial real estate firm Strive announced Feb. 26 the sale of Sam Moon Center in Frisco. The seller, only described as a Dallas investor, was represented by Strive’s Hudson Lambert and Jennifer Pierson. Financial details were not revealed.
