Hartman Acquires The Colony Retail Center
On February 26, 2019, Hartman Retail III, DST acquired The Colony Retail, an 89,826 square foot, single-story shopping center located in a small town in the Dallas Fort Worth Metroplex. The property is 100% leased to Floor & Décor and Chair King, two well-performing national tenants. Both tenants have long-term, NNN lease terms that include rental escalations and multiple renewal options.
CEO, Al Hartman states,“The Colony Retail is in a prime location that is supported by an upper-middle-class consumer base. This program could be beneficial to investors seeking long-term income in an investment that may also allow them to defer capital gains taxes.”
National Tenant Summaries
- Floor & Decor leases 72,916 square feet. The lease began in November 2018 and runs through 2031, with three, five-year renewals at the option of the tenant.
- Chair King leases 16,910 square feet. The lease began in June 2017 and runs through 2027, with three, five-year renewals at the option of the tenant.
Local Market Summary and Demographics
Colony Retail is in a small town called The Colony, located in northwest Dallas. Established in 1977, The Colony is one of the best-kept secrets in Denton County. The population of 43,000 has a median age of 35 and an average household income of $110,000. The area has an unemployment rate below 4% and nearly 76% of the population is employed in white-collar professions. The Colony is known for its breathtaking views of Lewisville Lake, which extends 23 miles along its eastern shoreline and is surrounded by Lewisville, Grapevine, Carrollton, Denton, Plano, and Frisco.
The city’s Economy Development Corporation provides incentives to encourage economic growth and expansion for qualified property developers, companies that are willing to invest and current business owners.2 The benefits of the incentive programs have shown continuous growth in residential construction and overall economic development. The population surrounding Colony Retail is relatively well-educated. Approximately 70% of the population has had some college education or obtained a college degree. The shopping center is in the highly-regarded school districts of Lewisville and Little Elm. The Colony is home to six elementary schools, two middle schools, and one high school. Higher education opportunities are available at numerous colleges and universities in North Texas, including the University of North Texas, Southern Methodist University, Texas Women’s University, North Central Texas College, the University of Texas at Dallas and Collin College.
About Hartman: Hartman is a premier property management company in the Houston, Dallas and San Antonio markets. Hartman has owned and operated commercial office properties since 1983, offering premium office space at attractive rates. With more than 37 years of commercial leasing expertise in Houston, San Antonio and Dallas, Hartman knows exactly what their customers require. For more information, visit www.hi-reit.com.
Source: The Colony Economic Development Corporation, Incentive Guidelines retrieved from www.thecolonyedc.org/incentives
Sources: Visit the Colony, About the Colony, www.visitthecolonytx.com. The Colony Economic Development Corporation, 2019 Community Demographics, http://thecolonyedc.org/wp-content/uploads/2019/01/2019CommunityProfile.pdf