After investing nearly seven years into the repositioning, a group of 16 tenants-in-common investors has sold the class A Colonnade at West Lake Houston in one of Harris County's most affluent suburbs to a local retail investment and development company.

The 54,449-sf Colonnade at 18455 Lake Houston Parkway in Humble's prized Atascocita community was 94% leased at sale time to SONA Colonnades LP, which owns other close-by retail properties. The quietly marketed asset attracted five offers.

"The TIC investors were ready to cash out. They had bought it from the developer prior to its completion in 1995," says Brad Elmore of Houston-based NewQuest Properties, who was part of the project's repositioning team. "We had renewed and expanded the four largest tenants in the past year so the property's marketing was well-timed."

The closing was culminated on the first day that the TIC group could sell without a prepayment penalty – just three months before its loan matured and less than five weeks after the purchase contract was placed. "We had to secure 19 signatures on all documents from people all over the country," Elmore says, "but we were able to meet our anticipated closing date."

Chris Dray of NewQuest Properties represented the buyer of the four-building Colonnade, who has scooped up a neighborhood center with immediate upside from renewals marking their first year of new lease rates and a few others waiting in the queue to be reset.

The 6.8-acre Colonnade is positioned at the heart of a five-mile trade area with nearly 118,630 residents, whose average annual household income is $119,562. Situated on the eastern shore of the 12,000-acre Lake Houston, Atascocita is a recreationally rich community tailor-made for active lifestyles, featuring boating, fishing, numerous country clubs and golf courses, including the world-class Tour 18. In 2010, Atascocita was named one of the best places to retire by U.S. News & World Report.

Steve Karp, vice president of asset management for NewQuest Properties, has been at the helm of the Colonnade's repositioning as the asset manager since 2009 when the TIC group wrestled it from the grip of a now-defunct and bankrupt national asset management company. "Steve has been intimately involved in this repositioning. He deserves most of the credit for the Colonnade's successful rebound after the TIC group rescued it from bankruptcy court," says Elmore, who's been leasing the project about three years.

The repositioned Colonnade is home to a mix of essential neighborhood services, including medical practices, a title company and realtor, as well as traditional retail, restaurants and coffee shop. There are 20 tenants and two openings, with three of its four buildings fully occupied. Strategically positioned on a "going home" site, the retail center is tucked between the single-family residential developments of Eagle Springs and Walden and sits a half mile from the $46.9 million Atascocita High School.

SOUTH TEXAS SALE

A tenants-in-common group has sold the 54,449-sf Colonnade at West Lake Houston shopping center, situated on 6.75 acres 18455 Lake Houston Parkway, Humble, TX, to SONA Colonnades LP. Brad Elmore of NewQuest Properties represented the seller. Chris Dray of NewQuest Properties represented the buyer.

SOUTH TEXAS LEASES

King's Biergarten LLC has leased 6,500 sf of retail space at the intersection of T.C. Jester and Ella boulevards, Houston, from 2036 TC Jester LLC. Mac Ruggles of NewQuest Properties represented the tenant. Ashley Williams and Chris Dray of NewQuest Properties represented the landlord.

Five Guys Burgers & Fries has leased 2,400 sf of retail space in Grand Parkway Marketplace, located at the intersection of Grand Parkway and Kuykendahl Road, Spring, from Kimco Realty. Mac Ruggles of NewQuest Properties represented the tenant. Doug Schooley and Michael Chodrow of Kimco Realty represented the landlord.

CENTRAL TEXAS LEASES

Lechen Dental has leased 2,450 sf of retail space in Crystal Falls Town Centre, located at the intersection of Crystal Falls Parkway and Lakeline Boulevard, Leander, from NewQuest Properties. Josh Friedlander of NewQuest Properties represented the landlord. Alan Clark and John Phelps of Phelps Commercial Realty represented the tenant.

Massage Heights Body + Face has leased 2,413 sf of retail space in New Braunfels Town Center at Creekside, located at the intersection of Interstate 35 and FM 306, New Braunfels, from NewQuest Properties. Ashley Williams and David Meyers of NewQuest Properties represented the landlord. Cynthia Lee of Keller Williams Realty represented the tenant.