JLL Capital Markets secured the sale of Palms Crossing, a 399,075-square-foot retail center in McAllen, Texas.
JLL represented the seller, WPG. The buyer was CTO Realty Growth, Inc. (NYSE: CTO)
Palms Crossing is strategically positioned at 3300 W Expy 83 in McAllen, serving as a premier retail destination for the Rio Grande Valley region. The 98% leased open-air shopping center sits on 46.6 acres and features prominent national retailers including Hobby Lobby, Restaurant Depot, Best Buy, Burlington, Barnes & Noble and Guitar Center.
The property demonstrates exceptional performance metrics, ranking in the top 3% of shopping centers in Texas with 7.2 million annual visits. Several anchor tenants operate top-performing locations within their respective portfolios, including Hobby Lobby’s top 3% store and Best Buy’s top 5% store by visits.
McAllen’s position as the retail epicenter for the Rio Grande Valley, a region with more than 2.3 million people, drives the property’s strong performance. The market generates $10 billion in retail sales annually and captures the second-highest retail tax collection per capita of any city in Texas. The area’s proximity to Mexico results in 18 million annual border crossings, creating significant cross-border retail demand.
The property offers additional upside potential with more than five acres of developable land and below-market rents representing 32.3% of current leases. The asset also features four separately platted parcels that present immediate pad spin-off opportunities.
JLL Capital Market’s Investment Sales and Advisory was led by Senior Managing Directors Barry Brown, Chris Gerard and Claudia Steeb and Director Erin Lazarus.
