Helping a Family Office Navigate an Off-Market Portfolio Sale Across Three Texas Retail Centers
SIG’s Retail Team, led by Ethan Offenbecher and Baker Baine, represented a Texas-based family office in the off-market disposition of a three-property West Texas retail portfolio acquired by Criterion, a private equity buyer. Despite geographic complexity and extensive tenant coordination requirements, the transaction closed successfully with a projected IRR above 20% for the buyer and a strong outcome for the seller.
Client Overview
A Texas-based family office approached SIG to evaluate strategic options for three legacy shopping centers: 31st Street Plaza, Coronado Shopping Center (Amarillo), and Victoria Shopping Center. With evolving portfolio objectives and interest from repeat capital partners, the seller sought a streamlined, relationship-driven transaction rather than a broad market process.
The Challenge: Coordinating an Off-Market Portfolio Sale Across Three Markets
The portfolio required extensive cross-market coordination, including three separate shopping centers, two property management teams, 76 tenants, and material deferred maintenance considerations. As the seller pursued an off-market strategy, SIG’s role centered on matching the right buyer, navigating operational complexities, and ensuring a smooth closing despite Texas’s non-disclosure environment.
The Strategy/Our Approach
Leveraging Relationships + Building a Clear Business Case
SIG introduced the portfolio to Criterion, a private equity firm with whom both the seller and SIG had previously completed a successful transaction (“Martendale”) the prior year. This established rapport accelerated underwriting and allowed all parties to move confidently toward terms.
1. Comprehensive Underwriting Support
Criterion identified approximately $1.5 million in deferred maintenance, primarily parking lot and exterior improvements. SIG supported buyer diligence by helping validate:
- Rent upside in underperforming units
- Leasing potential for existing vacancies
- Local contractor estimates and timelines
- Market-supported rent projections through local broker engagement
This created a clear and compelling business case, demonstrating how the buyer could recognize value beyond the in-place cap rate.
2. On-the-Ground Coordination Across Two Counties
SIG advisors and buyer principals conducted multiple in-person tours and site inspections across Amarillo, Lubbock, and Victoria County. Close collaboration with local agents and contractors enabled the buyer to refine projections with confidence.
3. Managing Complex Tenant Estoppels
With 76 tenants and two property management companies in the mix, organizing tenant estoppels was one of the most challenging aspects of the transaction. SIG managed inter-party communication, timelines, and document review to ensure all required estoppels were completed before closing.
4. Streamlined Off-Market Execution
By keeping the process off-market and targeted, SIG ensured a cooperative environment that supported both parties’ timelines and objectives.
The Results: A Successful $15M+ Off-Market Portfolio Sale
The transaction closed at a total consideration exceeding $15 million. Texas is a non-disclosure state, so exact price and cap rate figures are not publicly available. For specific details, interested parties may contact SIG’s deal team directly.
The buyer’s projected performance exceeded expectations, achieving a 20%+ IRR, while the seller executed a clean, relationship-driven exit aligned with their portfolio strategy.
RESULTS SNAPSHOT
- $15M+ Total Transaction Value
- 20%+ Projected IRR for Buyer
- 3 Multi-Tenant, Retail Centers Across West Texas
- 76 Tenant Estoppels Coordinated
- 2 Property Management Firms Involved
- Off-Market Repeat Buyer-Seller Transaction
What Sets This Approach Apart
SIG’s ability to leverage existing relationships, coordinate multi-market diligence, and manage highly detailed tenant and operational requirements created a seamless experience for both sides. The deal demonstrated how thoughtful advisory and disciplined execution can drive value in complex, off-market retail transactions.
Conclusion: Successful Strategic Exit and Value-Add Portfolio Acquisition
This closing represented a meaningful win for all stakeholders – allowing the seller to execute a strategic disposition and enabling the buyer to acquire a well-positioned portfolio with clear value-creation potential. For SIG, it highlighted the power of long-term client relationships, disciplined portfolio advisory, and deep retail expertise in delivering successful outcomes across diverse markets.
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IMPORTANT INFORMATION: Sands Investment Group and its affiliates do not practice law and do not give legal, tax, or accounting advice. All clients are advised to consult their tax, legal, and accounting advisors before engaging in any transaction.
