Wu Properties remains bullish on Houston retail properties, zeroing in on centers designed for the sort of “daily needs” stores that avoided the pitfalls of the pandemic, when e-commerce got a big boost over many brick-and-mortar rivals.
Steve Wu’s firm recently acquired a pair of retail properties in west Houston: the 139,000-square-foot former Sam’s Club building at 13331 Westheimer Road and the 189,300-square-foot Presidio Square shopping center, the Houston Business Journal reported.
Wu has added three Houston-area shopping centers into its portfolio since September, spending around $55 million in total. As many investors steer clear of retail assets in light of online shopping trends and high interest rates, Wu is putting the pedal to the metal.
“While others have taken a wait-and-see approach to see when interest rates will fall, Wu Properties forges ahead with acquisitions, doubling down on the belief that the best time to buy is when nobody else is buying,” a company spokesperson told the outlet. “As the Houston region population and jobs continue to grow, demand for retail space in the Houston area will increase correspondingly.”
The Westheimer Road property, which has been vacant for several years, was acquired from Sam’s Real Estate Business Trust. Weitzman brokers James Namken and Kyle Knight represented the sellers, while John Nguyen of NewQuest Properties represented Wu.
The former Sam’s Club building is part of the 262,5000-square-foot Market Square at Eldridge shopping center that Wu purchased in 2022. Tenants include Target, TJ Maxx, Michael’s and Five Below. Wu aims to convert the former Sam’s Club into a multi-tenant building and renovate the exterior so it blends in with the rest of the retail complex.
Presidio Square, purchased from North American Development Group, is anchored by an H-E-B grocery store. It also houses a Family Thrift Center, AT&T, Subway, State Farm and Chase Bank. The property was 96 percent leased at the time of sale, the outlet said.
Moreover, the company acquired the 106,177-square-foot Shops at Cypresswood, at 19507 North Freeway, in September and has since upped the property’s occupancy rate from 88 to 99 percent.
—Quinn Donoghue
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