Nearly 400,000 SF South Texas Retail Center Trades Hands in McAllen

The Rio Grande Valley retail sector is seeing renewed investment activity following the confirmed sale of Palms Crossing, a prominent open-air shopping destination in McAllen, Texas. The transaction, facilitated by the capital markets team at JLL, involves a substantial 399,075-square-foot footprint, marking one of the larger retail trades in the region this cycle. According to Shopping Center Business, the brokerage team of Barry Brown, Chris Gerard, Claudia Steeb, and Erin Lazarus of JLL Capital Markets spearheaded the marketing and disposition process on behalf of the seller.

CTO Realty Growth acquired the center from WPG for $81.6 million. The property was 98% leased at the time of sale. McAllen has historically benefited from strong cross-border commerce and a robust demographic profile, factors that continue to attract institutional capital to the region.

Key Details

The transaction centers on Palms Crossing, a massive open-air community and power center configuration. Key specifications of the deal include:

• Property Size: The center encompasses approximately 399,075 square feet of leasable retail space.
• Location: The asset is strategically located in McAllen, a key economic hub within the Rio Grande Valley.
• Brokerage: JLL Capital Markets arranged the sale, leveraging their extensive investment sales platform to source capital.
• Structure: The property is designed as an open-air center situated on nearly 47 acres, with over 5 acres of developable land offering additional pad site opportunities.

Market Impact

For commercial real estate professionals, this trade serves as a bellwether for investor sentiment toward South Texas border markets. McAllen has long attracted retail investors due to its status as a magnet for shoppers from northern Mexico.

The successful disposition of a near-400,000-square-foot center at 98% occupancy demonstrates continued investor appetite for well-leased retail assets in the Rio Grande Valley.