Kobalt Investment Co. has purchased a controlling interest in Rio Norte Shopping Center, a 222,291-square-foot Class A retail center in Laredo, Texas. The firm partnered with Stonefield Investment Advisors LLC and Espada Real Estate to acquire the asset.
JLL brokered the transaction on behalf of the seller, a joint venture between Auerbach Opportunity Fund I LP and Elevation Real Estate.
Anchored by Ross Dress for Less, Rio Norte Shopping Center features a diverse mix of regional and national retailers such as Michael’s, Petco, Dollar Tree, Shoe Carnival, Five Below, dd’s discounts, Spec’s, SAS Shoes and Cicis Pizza, among others.
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Located at 5404-5506 San Bernardo Ave., in the heart of Laredo’s retail core, the property is near Interstate 35, in an area where the daily traffic count reaches around 87,265 vehicles, according to Kobalt. Rio Norte Shopping Center serves approximately 173,673 individuals within a 5-mile radius, with the average household income of $78,415, the same source shows.
JLL Senior Managing Director Adam Howells and Associate Matthew Barge led the Retail Capital Markets Investment Sales and Advisory team which represented the seller.
Texas’ retail scene remains positive
The retail sector has faced numerous challenges due to the global pandemic. Despite this, states like Texas have seen population and employment growth, leading to one of the strongest retail markets in the country. Investors remain attracted to Texas because of its low business costs, tax-friendly environment, and ample land for expansion.
Dallas and Houston are the metros with most retail activity. Dallas-Fort Worth was the third most active U.S. market for retail trades last year and number two overall for single-tenant sales, according to a recent Marcus & Millichap report.