Watters Creek mixed-use destination sells to local Dallas investor

DALLAS, March 14, 2022 – JLL Capital Markets announced today that it has closed the sale of and arranged acquisition financing for Watters Creek at Montgomery Farm, a 458,091-square-foot, premier, open-air, mixed-use, grocery-anchored retail and office destination part of the Watters Creek development within the affluent Dallas-Fort Worth community of Allen, Texas.

JLL marketed the property on behalf of the seller, a partnership between PCCP, LLC and Trademark Property Company. A partnership comprising Dallas-based Charter Holdings and DuWest Realty acquired the asset. Additionally, working on behalf of the new owner, JLL secured the five-year, floating-rate, non-recourse acquisition loan with Washington Federal Bank and Texas Capital Bank.

Completed in 2008, the 46-acre Watters Creek at Montgomery Farms is in the top 4% of shopping centers in DFW and is part of Waters Creek, an iconic, 1.1-million-square-foot live-work-play district that houses multi-housing units, office, 300 hotel rooms and convention center space within walking distance of the property. The subject property is 87% leased and home to a diverse roster of 61 nationally recognized retail tenants, including the top-performing Market Street in DFW and Michaels within 15 miles and the No. 2 performing PF Chang’s and Victoria’s Secret in DFW, along with a popular MiCocina, Sephora, pure barre, Kendra Scott, Bath and Body Works, Massage Heights, The Blue Fish, Panera Bread, F45, Anthropologie and The Cheesecake Factory.

Three of the property’s 20 buildings contain 98,209 square feet of office space with tenants such as Regus, Mattison Avenue Salon Suites & Spa and TNP. Additionally, 1.75 acres of land could be used for future development and expansion of the property.

Watters Creek at Montgomery Farms is at 970 Garden Park Dr. in the northern DFW suburb of Allen, one of the fastest-growing cities in the Dallas-Fort Worth metro area. The area within a five-mile radius has seen explosive growth of 150% since 2001, and the expansive trade area includes $12.3 billion of buying power. Additionally, the property has excellent visibility from its position along 75, a large regional north-south thoroughfare, and is surrounded by new development.

The JLL Retail Capital Markets team representing the seller was led by Senior Managing Director and Co-Head of U.S. Retail Capital Markets Barry Brown, Senior Managing Directors Chris Gerard and Ryan Shore and Analysts Greyson Fewin and Pauli Kerr.

“This is the perfect investment for the new ownership group, which will have the opportunity to take Watters Creek to the next level with an upgraded merchandizing mix and by activating many areas of the property,” Brown said. “There continues to be enormous investor interest both regionally and nationally for larger mixed-use assets that contain lifestyle retail, office and multi-housing components.”

The JLL Capital Markets Debt Advisory team included Senior Managing Director John Brownlee, Managing Director Clint Coe and Analysts Jack Rohrman and Chad Lisbeth.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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