Deal of the Week: Investor Finds a Sweet Deal in Small City's Downtown

A private investor found a sweet investment in an early-1900s downtown building, in Bryan, Texas, a city of about 85,000 people next to College Station, the home of Texas A&M University.

The investor paid a little more than $1.2 million for the two-story, 14,480-square-foot building in which a popular candy and pastry business, called the Chocolate Gallery, occupies the first floor. The Bryan property been on the market for more than seven months but sold with just a $60,000 cut in the original list price.

A husband and wife team, both trained chefs, opened the sweets shop there in 2012 after the building was completely renovated, and it quickly became a local staple. On the second floor, five upscale loft apartments rent for $1,300-to-$1,500 a month. David Shellenberger, a broker with Keller Williams Brazos Valley who represented the buyer, said four of the five are leased.

While the university just a few miles away plays a big role in Bryan’s economy, Shellenberger said investors bought into the downtown area years ago to not just to save it but to re-energize the place.

Bryan was created by a land grant from Spain in the 1860s. A master plan in 2001 to guide downtown revitalization noted “a rich stock of historic buildings, most of which have retained some level of architectural integrity.”

These days, the downtown has become more economically sound and a place for social gatherings. Since 2007, downtown Bryan has hosted the annual Texas Reds Steak & Grape Festival, which draws roughly 20,000 people for three days. The festival is a celebration of beef and wine.

“It’s been going through a total renaissance” with new restaurants, retail, bars and offices, particularly over the past four or five years, Shellenberger said. “It’s a really cool place.”

Second-home buyers have also provided a big boost for the area. Austin is about two hours southwest of Bryan. Houston is roughly 2.5 hours to the southeast. Shellenberger said many those buyers are Aggie alumni.

“They really love their school,” he said.

LoopNet publishes new "Deals of the Week" every other Monday. Click here for the entire series.