Fidelis Acquires 613000 SF Power Center in Pearland

PEARLAND, Texas – (Realty News Report) – Fidelis Realty Partners has acquired the H-E-B-anchored Shadow Creek Ranch Town Center in Pearland, in one of the largest shopping-center transactions in the Houston area since Covid hit in 2020.

JLL Retail Capital Markets marketed the 613,468-SF center on behalf of the seller, EDENS.

The buyer, Fidelis Realty Partners LLC, a Bellaire-based firm led by Alan Hassenflu, controls a number of large shopping centers in the Houston area and elsewhere.

The Shadow Creek Ranch Town Center is located at the northwest corner of Highway 288 and FM 518 (also called Broadway) – a key intersection in Pearland.

Completed between 2007 and 2008, the Shadow Creek Ranch center is anchored by H-E-B. The 97.7-percent-leased property is also home to national and local tenants, including Academy, Ashley HomeStore, Burlington, Dynamic Fitness, Hobby Lobby, Subway, Club Pilates, Men’s Wearhouse, Pure Barre and Salata. The sale includes 11 free-standing pad sites leased to r tenants such as Taco Cabana, Frost Bank and Longhorn Steakhouse.

Shadow Creek Ranch is at 2805 Business Center Dr. in Pearland, a growing southern Houston suburb known for a recent influx of major corporate relocations. The retail center is within the 3,500-acre Shadow Creek Ranch master-planned, mixed-use, live-work-play development that features greenbelts, lakes and the many of Pearland’s principal employers and retail space. The power center serves an affluent trade area that includes 79,126 residents with in a three-mile radius with an average income exceeding $138,000.

The population has ballooned nearly 57 percent since 2010, and the current number of households is anticipated to grow 11.2 percent over the next five years.

The JLL Retail Capital Markets team representing the seller was led by Senior Managing Directors Ryan West and Chris Gerard, Senior Managing Director and Co-Head of U.S. Retail Capital Markets Barry Brown, Senior Director Wendy Vandeventer and analyst Katherine Miller.

“The sale of Shadow Creek Ranch reflects the state of the retail capital markets in Texas,” West said. “We had a deep pool of buyers pursuing a large-scale retail asset that was anchored by a high-octane H-E-B and big box retailers that emerged from a pandemic stronger than before.”

Additionally, Fidelis has engaged JLL to source post-acquisition financing for Fidelis.

The JLL Capital Markets Debt Advisory team arranging the post-acquisition financing for Fidelis Realty Partners LLC includes Senior Managing Director Colby Mueck, Senior Director James Brolan and Analyst Stuart Hepler.

According to JLL Research’s recently released United States Retail Outlook for the third quarter of 2021, the retail recovery is in full swing with demand returning to 2017 levels. Big-box retailers like the ones that call Shadow Creek Ranch home are posting solid performance and increasing the stability of power centers, JLL said.

Fidelis’ portfolio has included a number of H-E-B-anchored centers including the 1 million-SF Meyerland Plaza where one of the first two-story H-E-B stores was built by Fidelis.

Jan. 20, 2022 Realty News Report Copyright 2022

Photo credit: JLL Capital Markets

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