HFF announces the sale of and acquisition financing for Tanglewood Court, a 125,500-square-foot, fully leased, H-E-B-anchored shopping center in Houston’s affluent Galleria/Uptown submarket.
The HFF team represented the seller, a partnership between Fidelis Realty Partners and BayNorth Capital LLC. American Realty Advisors purchased the asset. Additionally, working on behalf of the new owner, the HFF team placed the financing with a national life insurance company.
Completed in 2014, Tanglewood Court was institutionally developed, owned and maintained by the seller. The three-building retail center is fully leased to a variety of national and regional tenants, including anchor H-E-B, Mattress Firm, La Madeleine, Memorial Hermann, SH Salon, Mercantil Commerce, French Quarter and Splendid Dental. Situated on a 12-acre, urban infill site at 5895 San Felipe, the center serves some of Houston’s most affluent and densely populated neighborhoods, Tanglewood, the Memorial Villages and Briargrove. Tanglewood Court’s location within the Galleria/Uptown submarket places it in the second largest of Houston’s 21 office submarkets and a daytime population of more than 200,000. Additionally, the center is one mile from the Galleria, the nation’s fourth largest retail complex and No. 1 performing mall in Houston.
HFF’s investment advisory team representing the seller included senior managing directors Rusty Tamlyn and Ryan West, director John Indelli and real estate analyst Charlie Strauss. Fidelis Realty Partners Alan Hassenflu, Lynn Davis and Glenn Airola, all partners in the firm, represented Fidelis, which will continue to lease and manage the center post-closing, while BayNorth Capital managing director David Cronin represented BayNorth. American Realty Advisors was represented by ARA associate director Jessica Harrison.
HFF’s debt placement team representing the borrower consisted of senior managing director Colby Mueck and director Michael Johnson.
“Tanglewood Court attracted a wide range of interest primarily from institutional pension fund investors,” Tamlyn said. “H-E-B typically owns their stores, so very few come up for sale in the state of Texas on an annual basis. The combination of an urban infill location with great demographics and strong H-E-B sales led to tremendous investor interest.”
“As expected, the market proved to be as efficient as anybody could hope for, start to finish,” West added. “H-E-B has done an exceptional job positioning their stores in the market, and Tanglewood is a great example of that. The H-E-B grocery experience is second to none and on full display here.”
Holliday GP Corp. ("HFF") is a Texas licensed real estate broker.
About Fidelis Realty Partners
Fidelis Realty Partners (Fidelis) provides comprehensive services to commercial real estate assets. The company is organized by services function, with division heads of marketing, property management, accounting, construction and legal services. Each division head oversees a team of professionals within each function. The division heads report to the managing principal and CEO of Fidelis. The combined commercial real estate experience of the CEO and each of the five division heads is nearing 150 years, and the current Fidelis team is comprises more than 60 professionals. Fidelis' sole and focused mission is to maximize the value of the real estate it services.
Fidelis’ current portfolio of commercial real estate consists of over 10 million square feet. Fidelis services over 60 properties in 10 cities and 4 different states (Texas, New Mexico, Louisiana, Tennessee). The majority of the properties are in the greater Houston metropolitan area where Fidelis is headquartered. For more information, visit frpltd.com.
BayNorth Capital LLC is a real estate investment firm that traces its roots back to Harvard Management Company. After managing an investment portfolio exclusively for the Harvard University endowment from 1992-1998, the BayNorth team broadened its investor base to include many institutional and family office clients. Over its history, the team has invested over $2.0 billion of equity capital. Today, the firm is led by Charlie Flint, David Cronin and Matt Devine. Learn more at baynorthcapital.com.
About American Realty Advisors
With more than $8.4 billion in assets under management, American Realty Advisors is a leading provider of commercial real estate investment management services. For over 29 years, ARA has managed capital for institutional investors utilizing core and value-added commingled funds and separate accounts. ARA acquires assets directly or provides equity, preferred equity, mezzanine debt, debt, and hybrid debt to primary investors and developers operating throughout the United States for office, industrial, multi-family, and retail properties. More information regarding ARA can be found at aracapital.com.
About HFF
HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.
