Houston-Area Retail Center Lands $7M Refi
- May 11, 2018
Capital Retail Properties has secured $7.2 million to refinance The Shops at Spring Village, a fully leased retail center in Spring, Texas. JLL Capital Markets arranged the fixed-rate non-recourse loan through Goldman Sachs.
Situated at the southeast corner of Spring Stuebner and Holzwarth Roads, the property was built in 2017 and is home to a mix of tenants including AT&T, Dominos, Dunkin’ Donuts, Sports Clips and Red Wing Shoes. Major employers nearby include Exxon Mobil, CHI St. Luke’s Health and Southwestern Energy. HP and American Bureau of Shipping will also be opening new offices in the area.
Booming Market Growth
Managing Director Jimmy Board and Analyst Connor Harrell led the JLL team on behalf of the borrower. “This property offered lenders the opportunity to finance a quality, new construction retail center with zero short-term rollover and stable cash flow,” said Board, in a prepared statement. “Located in the emerging Grand Parkway/I-45 corridor, the center is set to benefit from the area’s ongoing growth and development.”
Houston’s retail market continues to thrive with the continuation of high occupancy rates and rising rents. The retail market started the year with 1.2 million square feet of positive net absorption and a 5.4 percent market-wide vacancy rate, according to JLL. The Shops at Spring Village is located within a rising trade area, next to a Kroger-anchored shopping center and 300 units of new Class A multifamily. As construction remains active with 3,600 units delivered year-to-date and 14,000 underway, rents in the Houston market are expected to continue improving.
Image courtesy of JLL Capital Markets