Pine Ridge Real Estate has purchased a West Houston shopping center that’s 100 percent occupied.
The Uptown Plaza, which spans 28,000 square feet, was previously owned by local real estate company AmREIT which was acquired by Washington D.C-based firm EDENS in 2015. Ryan West, John Indelli and Erin Lazarus of JLL represented the buyer.
Details of the all-cash transaction weren’t disclosed. The property’s most recent taxable value was estimated at nearly $19 million, according to the Houston Central Appraisal District.
Developed in 2002, the center’s tenants include CVS, Lesley Ann Jewels and Grotto. Tenants have an average tenure of over 12 years and a weighted average remaining lease term of three years, according to a news release.
Uptown Plaza holds a prime position at the intersection of Westheimer and Interstate 610, convenient to River Oaks District, Tanglewood and Montrose.
The River Oaks submarket maintains robust retail and a 3.3 percent vacancy rate, two percentage points below the city’s 5.3 percent average. However, it still lags behind its Texas counterparts with the highest retail vacancy rate throughout the Texas Triangle, according to Tranwestern.
Retail strip centers usually boast a higher vacancy rate, making Uptown Plaza’s 100 percent occupancy relatively impressive. Strip centers in the Bayou City had an average vacancy rate of 7.3 percent, according to Transwestner. Across Greater Houston, retail rents have seen a year-on-year growth of nearly 6 percent, indicating a thriving market.
The sale highlights the potential for investors to capitalize on thriving retail assets in sought-after locations. Houston’s retail market has remained relatively robust despite instability in other real estate sectors, including office and multifamily.
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