New 616,000SF Suburban Houston Retail Property Comes Under New Ownership
- Mar 04, 2008
Shadow Creek Ranch Town Center, a 616,400-square-foot shopping center in Pearland, Texas, that is scheduled to reach full completion this spring, has been sold by the property’s developers Transwestern, Buchanan Street Partners and WCF Development. A fund affiliated with AmREIT partnered with JP Morgan Strategic Property Fund to acquire the retail asset, which carries a development price tag of $130 million.Located about off State Highway 288 Shadow Creek sits within a rapidly growing community about 15 miles south of Houston. Already, the center’s anchor, H-E-B grocery store, has opened its doors in a 150,000-square-foot space. Buchanan Street Partners had been the majority equity investor, having contributed $17.8 million to the project when the team decided to develop the center in January 2006. The partnership relied on commercial real estate brokerage firm Fox Properties for representation in the disposition. The buyers turned to real estate services firm CBRE Melody to orchestrate acquisition financing, which was provided by MetLife. Strong retail demand in Pearland can be partially attributed to its ongoing growth spurt. The city’s population, currently at an estimated 80,000, is on track to reach over 96,000 by 2011, as per the Pearland Economic Development Department. The retail market in Metropolitan Houston in general, according to commercial real estate services firm The Weitzman Group’s 2008 Shopping Center Survey and Forecast, is being spurred by robust job growth and a relatively strong housing market; according to the U.S. Census Bureau, Houston’s housing market ranked number one in the country, based on single-family housing starts.