Brazos Mall in Texas Town Gets Three New Owners
- Nov 05, 2015
Centennial Real Estate Co. has teamed up with Atlantic Creek Real Estate Partners L.L.C. and The North Shore Properties Group L.L.C. to acquire the Brazos Mall, a 680,951-square-foot enclosed shopping center in a rapidly growing area south of Houston.
The terms of the off-market deal were not made public. Located in Lake Jackson, Texas, in Brazoria County, the mall was built in 1976. It is 92 percent occupied with national retailers including JC Penney, Victoria’s Secret, Rue 21, Aeropostale, Ross Dress for Less, Hot Topic and American Eagle Outfitters. A new 14-screen Starplex Cinema is the only first-run movie theater within 40 miles. A Dillard’s department store is also in the center but is separately owned and was not part of the partnership’s acquisition.
“The Brazosport area is one of the fastest growing markets in Texas. Brazos Mall is the commercial hub of this growing community whose population is projected to increase by 2.5 percent annually over the next five years,” Steven Levin, Centennial’s CEO, said in a prepared statement. “Residents deserve a vibrant retail destination with a best-in-class merchandising mix and amenities that appeal to the community.”
Although no numbers or details were given, Levin added, “We plan to embrace the community and invest in Brazos Mall in order to create a truly dynamic shopping experience.”
Brazos Mall is the only enclosed retail center in the Brazosport area, which is seeing about $30 billion of investments underway or planned for completion by 2020, including Dow Chemical’s new Texas Innovation Center and Port Freeport’s LNG terminals. The Dow complex, which will feature 900,000 square feet in five buildings on 50 acres, is just one of several major projects under construction.
Other corporations located in the area include Chevron, Phillips 66 and BASF Corp. The region has a trade area of over 132,000 and an average household income of nearly $70,000 making it attractive to both retailers and restaurants.
Despite the dropping oil prices, the Houston region’s retail market has not suffered. Strong population growth is fueling new construction to meet the retail needs in the greater Houston area.
“Pent up demand continues to produce strong demand across the city both in the far suburban area and urban core. Occupancy increased 70 basis points from Q3 2014, and at 94.1 percent is the highest marketwide occupancy on record,” CBRE noted in its Houston Retail Marketview Q3 2015 report.
The CBRE report stated that 2.4 million square feet of retail was being built in the third quarter in the greater Houston area. Kroger has four locations under construction, including one in Lake Jackson. H-E-B, a Texas-based grocery chain, is also building two new sites and recently opened a location in Lake Jackson.
Dallas-based Centennial is a real estate firm specializing in the investment, development and management of retail properties, including enclosed malls, neighborhood community centers and urban mixed-use areas. Atlantic Creek has offices in New York City, Los Angeles and Palm Beach, Fla., and targets direct and joint venture investments in opportunistic and value-add office, retail and multifamily commercial real estate primarily on the East and West Coasts as well as in Texas and other select U.S. markets. The North Shore Properties Group is a privately-held real estate company based in Northbrook, Ill., that has over 50 years of retail leasing experience, including new development and existing shopping centers.