Local investment group RMM Properties LLC has purchased another retail center in southeast Houston, snapping up the 39,038-sf Centre South in a 45-day value-add play.
With Interstate 45 on its doorstep, the 3.3-acre property is located at 11030 Kingspoint Rd., Houston, in a redevelopment hotspot near Almeda Mall, where a strong Hispanic population is the catalyst for a booming retail marketplace. The NewQuest team of Kelley Workman, David Luther and Dakota Workman represented the out-of-state seller, Community Commercial Properties II LLC.
"You need the right owner to understand the demographics of this market," says Kelley Workman, vice president of NewQuest Properties' investment sales group. She also sourced and represented the buyer.
According to market reports, there are 62.8 million Hispanics in the U.S., representing the fastest growing population segment and highest-spending minority group. Research firm Claritas estimates 2020's annual aggregate Hispanic household spending will reach $978 billion.
Centre South's five-mile trade area has a population hovering 300,000. The average annual household income is nearly $75,000.
The center's occupancy was 79.2% at sale time. Developed in 1970 and renovated in 2018, the project is anchored by Sherwin Williams, Brown Sugar BBQ and COVID-sidelined Club Rumba. RMM Properties, which has an in-house leasing team, has 6,000 sf to fill in four spaces.
"During COVID-19's early months, we signed three new, healthy leases. That really motivated the buyer," Workman says.
The new tenants are Southside Driving School, Internet Café and La Fleur of Houston, a full-service event planner. A few renewals also were signed during the marketing period.
Positioned at a hard corner, the retail project boasts several hundred linear feet of I-45 frontage, a highly visible location to 209,000 daily motorists going north or south. It's also situated a half mile north of Beltway 8.
To the rear of Centre South, a shuttered Home Depot has been converted into a class A climate-controlled self-storage facility. Meanwhile, several neighboring restaurants are being updated and renovated.
"The buyer is highly familiar with this area. I sought him out intentionally," Workman says.
RMM Properties financed the acquisition through Central Bank. Carlos Alvarez, senior vice president of lending, arranged the financing.
SOUTH TEXAS SALES
Community Commercial Properties II LLC has sold the 39,038-sf Centre South shopping center on 3.3 acres at 11030 Kingspoint Rd., Houston, to RMM Properties LLC. Kelley Workman, David Luther and Dakota Workman of NewQuest Properties represented buyer and seller.
Wolff Interests has sold the 61,910-sf former Star Furniture Clearance Center on 2.44 acres at 16515 North Freeway, Houston, to ZFam Properties Spring LLC. Brad LyBrand of NewQuest Properties represented the seller. Josh Sebesta of S&P Interests LLC represented the buyer.
CENTRAL TEXAS SALE
1619 LLC has sold a 2,601-sf office building on 0.51 acres at 1619 W. 6th St., Austin, to Robert L. and Mary D. Ogden LP. Brad LyBrand and Glenn Dickerson of NewQuest Properties represented the seller. James L. Cotton of McAllister & Associates represented the buyer.
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.
