Newly Constructed Infill H-E-B at Bellaire Triangle on the Market

Monday, April 9, 2018

HFF, on behalf of the owner, is marketing for sale a former H-E-B anchored shopping center currently being redeveloped into a two-story, 50,967-square-foot, state-of-the-art H-E-B grocery store on Bissonnet Street in the Houston community of Bellaire.  H-E-B has occupied this site for more than 20 years and has nearly completed building a new grocery store at its own expense, while continuing to make rental payments during construction, which is expected to be completed at the end of the second quarter of 2018.

The Bellaire Triangle H-E-B is situated on 3.187 acres at 5106-5120 Bissonnet, a major thoroughfare in Houston that connects Bellaire, West University Place and other major residential neighborhoods in Houston, while providing direct access to Loop 610. The City of Bellaire, which is an unincorporated city, occupies the 77401 ZIP code near central Houston and features an average household income of $235,000, the highest in all of Houston.

The retail property for sale is surrounded by a densely populated and affluent customer base in an area that has high barriers-to-entry with strict zoning regulations enforced by the City of Bellaire, which do not apply to the rest of Houston. While several retailers and grocery stores desire having a Bellaire address, feasible retail options are severely constrained. Even on a wider scale, barriers-to-entry within the Loop 610-area are evidenced by a 96-percent current retail occupancy rate and 22.6-percent retail rent growth over the last five years.

Houston Retail Property for Sale Investment Highlights

  • Tenant Commitment:  After signing a new 20-year lease in 2016, H-E-B will occupy the building for at least 18 more years on an absolute triple-net-lease basis renewable with 14 five-year options (or 70 years). 
  • Secure Single-Tenant Asset:  H-E-B is the top-rated grocer in Texas.  With more than 370 stores in Texas and Mexico and 86,000 employees, H-E-B’s total transaction volume exceeded $23 billion in 2016. The privately held company is based in San Antonio, was founded in 1905, and continues to expand its presence throughout Texas, and more specifically in Houston with plans to open six more stores in the greater MSA in 2018. The grocer has become a favorite of Texans due to its competitive price points, superior customer service and high-quality product, allowing the company to gain a 27-percent market share throughout the city, No. 1 among its competitors.
  • Affluent Infill Location in Houston:  In addition to the Bellaire H-E-B building that is for sale, there are nine other H-E-B grocery stores currently operating within Beltway 8 (Sam Houston Tollway) with two under construction and an additional two stores planned that have yet to break ground. Due to strong demographics surrounding the Bellaire location, coupled with a lack of nearby grocery options, H-E-B has nearly completed it’s first “double-decker” grocery location in Houston. The Bellaire location is surrounded by a consumer base of more than 224,000 people and an average household income over $122,500 within a three-mile radius. This results in the fourth highest gross household income among all H-E-B locations in the Houston MSA.
  • State-of-the-Art Construction:  H-E-B is near completion on an innovative H-E-B, which is being constructed to compliment the surrounding area and designed to accommodate modern grocery shopping preferences. The two-story grocery store will have first-floor parking and second-level shopping along with additional parking.  The new design described above will be the first of its kind in the city for the grocer.  The construction will turn a once tired shopping center into a freshly constructed, sleek new grocery store that is unique to not only the City of Bellaire, but also the Houston MSA as a whole.

For more information on this specific real estate listing or other retail properties for sale, please contact Ryan West or John Indelli in HFF’s Houston office.  Click here for our real estate investment sales search page for a current listing of commercial properties available for sale.

Holliday GP Corp. ("HFF") is a Texas licensed real estate broker.

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