Major Development Slated for Houston Suburb
- Oct 03, 2016
By Scott Baltic, Contributing Editor
Houston—Trademark Property Co. has entered into an agreement to develop an 82-acre, mixed-use town center on land owned by Westside Ventures at the northwest corner of I-10 and Mason Road in Katy, Texas, Trademark announced Thursday. The greenfield site is part of a 107-acre tract owned by Westside Ventures and will be developed in phases over the coming years.
Planning is underway for the initial 60-acre phase of the as-yet-unnamed project, which will include retail, restaurant, residential (likely multifamily, according to a Trademark spokesperson), hotel and office space.
“This particular piece of land is … ideally suited for mixed-use,” John McCormack, CEO of Westside Ventures, said in a prepared statement. “Trademark’s expertise in developing world-class, mixed-use town centers … [makes] them a perfect partner to develop this property into its full potential.”
“There is a tremendous retail void in West Houston,” Trademark CEO Terry Montesi said in the statement. “Combined with the compelling housing, population and income demographics, and the site’s adjacency to I-10 and Grand Parkway and the Energy Corridor, this represents a long-term opportunity for Trademark to cultivate a next-generation, best-in-class environment for the West Houston and Katy communities.”
The Katy project’s announcement highlighted potential parallels between this development and Market Street – The Woodlands, a 570,000-square-foot, 34-acre specialty mixed-use center in The Woodlands (also in metro Houston), which Trademark completed in 2006.
Market Street – The Woodlands is “an environment that we hope to pull inspiration and best practices from and apply them to suit the Katy community,” Montesi told Commercial Property Executive, though he added, “We anticipate more overall density on the Katy site than at Market Street.”
The latter center features a numerous upscale tenants, including Tiffany & Co., Michael Kors, Kate Spade, Kendra Scott, Trina Turk, Vineyard Vines, Elaine Turner and Tommy Bahama.
A third-quarter metro Houston report by Marcus & Millichap backs up Montesi’s assessment of the retail situation there, calling tenant demand “intense” and describing pre-leasing as “robust” and “vigorous.” Metrowide average retail vacancy, already tight at 5.5 percent, is forecast to decline by 10 basis points year-over-year, even as absorption hits more than 3.3 million square feet.