Holliday Fenoglio Fowler, L.P. (HFF) and Megacenter Willowbrook LLC announces the completion of phase one of Megacenter Willowbrook, a 235,627-square-foot mixed-use project comprising industrial flex, self storage, retail and office space in northwest Houston, Texas.
Last July, HFF announced that it had arranged the financing for project, which included the redevelopment a former Walmart Supercenter building into Megacenter Willowbrook. The HFF team, which was led by director Michael Johnson and real estate analyst Stuart Hepler, worked on behalf of Megacenter to place the three-year, floating-rate loan with Icon Bank. This represents Megacenter’s fifth redevelopment project in the U.S.
The project, which broke ground earlier this year, has completed its first phase consisting of 37,000 square feet of flex warehouse; 20,000 square feet of self storage; and 15,000 square feet of office suites and co-working space. Additionally, the property will have a 114,000-square-foot gym and 34,000 square feet of entertainment destinations.
Currently 75 percent of the building is leased to a variety of tenants, including one of the largest e-commerce retailers worldwide, national entertainment tenant 13th Floor Entertainment Group (operator of haunted houses and escape rooms); Focus Physique Fit (fitness center); PGE (printing and retailer); Unimech Flow Inc (valves distributor); and multiple small office tenants at the executive office suites area. Phase two has been leased for the redevelopment of a 114,000-square-foot fitness center with an expected completion date by summer of 2019. The space will contain a restaurant, soccer and basketball courts, baseball batter box and a full fitness center.
“We are very pleased with the market response to our mixed-use development concept,” said President and CEO of Megacenter Patricio Ureta. “Small flex warehouse spaces (under 4,000 square feet), combined with executive office suites and self storage, provide flexible solutions to small businesses, which are the bulk of our customer base. This product mix allows small- and mid-size businesses to grow in our business parks without having to relocate. The addition of multiple entertainment tenants (fitness center, escape rooms and haunted house) will bring an attractive place to work and have fun that will not only impact our project but also the community around Megacenter Willowbrook.”
Situated on 24 acres at 7075 FM 1960 about 23 miles northwest of downtown Houston, the property is across the street from Willowbrook Mall, a 1.45 million-square-foot regional mall with more than 19 million annual shoppers, an in an affluent area of Houston with 103,630 residents earning an average household income of $89,102 within a three-mile radius.
About Megacenter U.S.
Megacenter is a subsidiary of Red Megacentro that is devoted to providing quality solutions in self-storage, office suites, retail and warehouse spaces. Megacenter/Red Megacentro has over 40 locations throughout Chile, Peru, South Florida and Texas with multiple additional developments currently underway. For more information, please visit http://www.megacenterus.com/ or follow MegaCenter U.S. on Facebook or Twitter @megacenterus.
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.
