SGRE Stone Center Ltd., a value-add investment group, has sold the 92%-leased Hearthstone Professional Plaza in northwest Houston, quickly winning several full-price offers as a testament to its redevelopment and leasing strategy.

The 16,142-sf plaza is a class A property at 15003 FM 529 in the Copperfield/Hearthstone submarket. Chris Dray, executive vice president of NewQuest Properties, and Rachael Keener, vice president, represented the local seller, who realized slightly more than a 7% cap rate on the trade.

"We had a full-price offer within two weeks," Dray says. "Backup offers are rare and we had several. We were surprised at how strongly the market responded."

Signal Hearthstone LLC placed the first offer and banked the deed shortly thereafter. Eugene Lang of Agate Properties represented the buyer, who is starting out with no lease rollovers in the near term and upside in one white-box vacancy, totaling 1,231 sf, in one of the strongest residential neighborhoods in the northwest corridor.

SGRE acquired the 1.4-acre asset in May 2016, buying an 11-year-old shopping center and subsequently transitioning it into a class A professional plaza focused on medical uses. NewQuest Properties was retained about 13 months ago to lease the asset and achieve stabilization. Five of the six current tenants are medical providers. The anchor, HCA Houston Healthcare, has 37.4% or 5,900 sf of the building locked in for the long term.

"It's the Amazon-proof and recession-proof kind of real estate that people want to own," Dray says. "The seller is a value-add player who wanted to get it stabilized and sold."

Hearthstone Professional Plaza is the only neighborhood services center in the area. Surrounded by large single-family developments, the project fronts a local artery used by 30,000 vehicles per day fueled, in part, by a big box shopping district just to the west. There are 138,000 residents with an average household income of $97,000 within a three-mile radius of the plaza, which also is right around the corner from a hospital and close to five schools in the top-ranked Cy-Fair Independent School District.

"Hearthstone is well-located in a good marketplace. Its tenants provide services that are always going to be needed," Dray explains. "That's what made this listing so attractive."

SOUTH TEXAS SALE

SGRE Stone Center Ltd. has sold the 16,142-sf Hearthstone Professional Plaza, 15003 FM 529, Houston, to Signal Hearthstone LLC. Chris Dray and Rachael Keener of NewQuest Properties represented the seller. Eugene Lang of Agate Properties represented the buyer.

SOUTH TEXAS LEASES

MS Dental has leased 2,502 sf of retail space in Metropark Square Shopping Center, 8888 Metropark Dr., Shenandoah, from NewQuest Properties. Rebecca Le and Grace La of NewQuest Properties represented the landlord. Alan Clark of Phelps Commercial Realty represented the tenant.

CBD American Shaman has leased 1,400 sf of retail space at 4741 Hwy. 6 S, Missouri City, from EQYInvest Owner I Ltd. LLP. Andrew Alvis of NewQuest Properties represented the tenant. Lauren Shepperd of Global Realty & Management TX Inc. represented the landlord.

NewQuest Properties, founded in 2001, is a privately owned, full-service commercial real estate firm specializing in development, land brokerage, leasing, tenant representation, investment sales and property management services. Headquartered in Houston, NewQuest owns a portfolio encompassing more than 60 retail and mixed-use projects valued at $2.2 billion and provides leasing services for more than 12 million square feet of commercial space in Texas, Louisiana and throughout the U.S.