Update: HFF announced the closing of this sale on August 7, 2017. For a list of current commercial real estate properties for sale, please click here.
Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing for sale The Market at Lake Houston, a fully-leased, 101,791-square-foot, H-E-B grocery-anchored core shopping center in the Houston-area community of Atascocita, Texas. The offering provides investors the unique opportunity to purchase an H-E-B-anchored, institutionally-owned and operated retail center in one of Houston’s best performing retail corridors.
“Institutional, core buyers from around the country are taking a hard look at this one," said HFF Senior Managing Director Ryan West. "It checks all the boxes and the opportunity to have H-E-B on the lease; that’s very unique.”
Completed in 2002, the retail property for sale's H-E-B anchor is a best-in-class retail tenant evidenced by its rank as the No. 2 brand in customer loyalty nationally (Temkin), its 25-percent grocery market share in Texas and standing as the 12th largest privately-owned company in the nation. The center’s H-E-B is ideally spaced from other H-E-B locations, with the nearest competitive H-E-B’s five and 8.5 miles away.
The Market at Lake Houston is situated on 13.856 acres on the hard corner of the “Main-and-Main” intersection of West Lake Houston Parkway and FM 1960 for convenient access and enhanced visibility to approximately 69,000 vehicles per day. The V-shaped design provides retailers the option of visibility to West Lake Parkway or proximity to H-E-B.
“It’s situated at the hard corner of one of the most heavily trafficked intersections in northeast Houston, and H-E-B is a huge draw to the affluent residential population,” HFF Senior Managing Director Rusty Tamlyn stated.
The Market at Lake Houston is 100 percent leased to H-E-B (80 percent of GLA) along with several iconic national retailers, including Five Guys Burgers & Fries, Sally Beauty Supply, Leslie’s Swimming Pool Supplies and Subway. The Market at Lake Houston is the end-cap to a larger retail development that spans 90 acres and is co-anchored by blue-chip retailers, including Lowe’s, T.J. Maxx, Kohl’s and Target, and more than half the points of ingress and egress lead directly to The Market at Lake Houston retail center.
Located in the northeastern Houston suburb of Atascocita, The Market at Lake Houston is in an established residential area with robust population growth forecast to continue over the next 10 years underpinned by strong quality of life from award-winning schools, high-end housing inventory and an array of golf courses and parks. Retail fundamentals within the trade area and immediate retail corridor are very tight with occupancy equaling 96.0 percent and 96.8 percent, respectively.
“The northeast residential population is significantly underserved by retail product; there are approximately 30 to 40 percent less retail options per resident than the Houston average," noted Justin Boyar, research associate at HFF.
Northeast Houston is undergoing significant corporate expansion with the addition of Generation Park, a 4,000-acre, master-planned commercial development with office, retail and hotel offerings; Exxon Mobile’s new headquarters that will be staffed by approximately 10,000 employees; and additional expansions planned by TechnlpFMC, Stole-Neilsen, Apache Industrial Services, San Jacinto College and Lone Star College’s Process Technology Center. By 2025, 45,000 new residents are forecasted to reside within the Humble area boundaries, including Atascocita, Kingwood, Fall Creek and others. Additionally, 25,000 of the new residents are expected to live along West Lake Houston Parkway. Currently, more than 65,700 residents earning an average annual household income of $112,709 live within three miles of the retail center for sale.
Investment demand for core, grocery anchored retail product remains strong in Houston with retail returns finishing No. 1, according to the National Council of Real Estate Investment (NCREIF). The city has led all other major metropolitan areas for job, population, and GDP growth over the last 10 and 15 years. While the Houston economy is underpinned by the oil and gas industry, the city’s nation leading growth was fueled by diversification and expansion within the health care, financial, trade, education and petrochemical industries. The trend of rapidly-increasing job and population growth is forecast to continue with prognosticators such as the United Nations and Moody’s predicting Houston to lead the nation in growth in the those categories over the next 10 years alongside fellow Texas city, Dallas.
Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp, a Texas licensed real estate broker.
Photos: Mabry Campbell