Friday , 14 December 2018
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South American Investor Buys Retail Center on Houston’s East Side

Fairmont Parkway Shopping Center

Fairmont Parkway Shopping Center

HOUSTON – The Fairmont Parkway Shopping Center has been acquired by a South American buyer, according to Transwestern. The 172,002-square-foot power center is located at the intersection of Beltway 8 and Fairmont Parkway in Pasadena, on the east side of Houston.

Transwestern Senior Vice President Micha van Marcke; Director Paul Barile; Director Janice Sellis; and Chace Henke represented the seller, A-S 82 Fairmont Parkway – Beltway 8 LP. Transwestern’s Structured Finance Managing Directors Jan Sparks and Michael Snodgrass and Vice President Tim Bennett secured the debt for the buyer.

“Due to its proximity to the Port of Houston and the world’s second-largest petrochemical complex, the Pasadena submarket serves as a natural hedge to low oil prices,” said van Marcke. “As a result, the area maintains very strong retail sales per square foot, regardless of market conditions, which is highly attractive to investors seeking long-term, stabilized returns.”

Fairmont Parkway Shopping Center is dual-anchored with long-term leases by 24-Hour Fitness and iT’Z Family, Food & Fun. The property is stabilized at 96 percent occupancy with a roster of national tenants including Comerica Bank, Goodwill and Pei Wei.

The Houston Ship Channel is driving tremendous growth in East Houston and the Pasadena submarket, making it highly attractive to investors for all property types. Currently, $100 billion has been invested in planned chemical plant construction and expansion through 2019, Transwestern reports.

The east side of Houston is gaining a significant amount of momentum. Prices for many east side industrial properties have increased by 25 percent or more in the last year or two, reports Houston valuation firm Deal Sikes & Associates.

A number of notable transactions, including the recent sale of the San Jacinto Mall in Baytown, indicate that momentum from the east side’s industrial sector has invigorated all types of real estate in the east submarkets.

“The surge in industrial growth on Houston’s east side boosted residential and retail values,” said Mark Sikes, principal of Deal Sikes & Associates. “With this promising boost of new blue-collar employment growth, residential developers and home builders, multifamily investors and retail center operators are taking positions in the area and planning new projects.”

Landlords have been able to achieve significant rent increases on the east side, said Matthew Deal of Deal Sikes & Associates.

The occupancy rates for southeast industrial buildings are some of the highest in the city and many property managers have been able to raise rents significantly in 2015,” said Deal.

“Land in business parks with railroad service is in extremely high demand. Prices for rail-served facilities have jumped sharply in 2015,” Deal said. “The completion of the massive Panama Canal expansion next year will lift cargo activity in at the Port of Houston energize industrial property in the area.”

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