NewQuest Properties Wraps Up Whirlwind Sales Streak, Includes Tradewinds Shopping Center Near Gulf Coast
December 13, 2022
HOUSTON – With value-add retail centers in particularly high demand, NewQuest Properties Investment Sales Division has sold the 130,0525-sf Tradewinds Shopping Center in Texas City in a trade between a local buyer and seller.
The retail center, which was 60% vacant at sale time, is situated on 11.5 acres at 2000 9th Ave., less than four miles from the Port of Texas City. The property is adjacent to the Charles Doyle Convention Center.
David Luther, executive vice president of NewQuest’s investment sales division, represented the seller, WFP Tradewinds LP. Colleague Dakota Workman, a senior associate, sourced the buyer, 2020 Harwin 59 Shopping Center Ltd.
“Value-add centers are particularly attractive right now,” Luther says, “because buyers are able to offset interest rates by increasing net operating income. As a result, they are willing to get aggressive for assets, like Tradewinds, that are priced below replacement costs.”
In a whirlwind round of trading, NewQuest Properties’ brokerage teams have closed four sales in recent weeks, a mix of retail properties and land plays stretching from Houston to Corpus Christi. Luther sees the rash of activity as more than the usual end-of-year trades.
“I believe this trend will continue well into 2023,” Luther says. “It’s a buyer’s market in that prices have adjusted to reflect higher rates and a seller’s market as well because there is abundant capital still available to close deals.
Three qualified buyers were jockeying for Tradewinds Shopping Center, which has 81,000 sf of available space. There are nine tenants in place for the long term, including DD’s Discount, Citi Trends, Family Dollar, Texas First Bank and Little Caesars.
“There is plenty of upside with Tradewinds Shopping Center,” Luther says. “The new owner is excited to work with the city to improve the property the right way.”
In a second value-add trade, Luther brokered the off-market sale of the 30,056-sf Cedar Stone Shopping Center at 6410 Weber Rd. in Corpus Christi. He represented the seller, Vaquero Saratoga Partners, and sourced the buyer, Red Oak Commercial and Component Capital Group of Dallas.
Cedar Stone was 75% leased at sale time. It too traded at below replacement cost.
“Value-add is a real trend. Size doesn’t make a difference,” Luther says.
NewQuest’s sales streak also included:
▪ Preeminent Hotels Inc.’s acquisition of 2.43 acres at the intersection of FM 518 and Business Center Drive in Pearland. The NewQuest team of Bob Conwell and Austen Baldridge represented the seller, SRB Pearland Associates LLC, in the direct deal.
▪ Quick N Clean Carwash bought 1.41 acres at 1005 FM 1960 W in Houston from AQ Investment LLC. Nick Ramsey of NewQuest represented the buyer and Josh Sebesta of S&P Interest negotiated for the seller.
SOUTH TEXAS LEASES
Freebirds has ground-leased a 1.24-acre pad side (54,097 sf) in Grand at Aliana, located at the intersection of West Grand Parkway and West Airport Boulevard, Richmond, from NewQuest Properties. Josh Friedlander and David Meyers of NewQuest Properties represented the landlord. Greg Stanislawski of The Retail Strategy Group represented the tenant.
Petco has leased 12,598 sf of retail space in Fort Bend Town Center II, located at the intersection of TX 6 and Fort Bend Tollway, Missouri City, from NewQuest Properties. Bob Conwell and Andrew Alvis of NewQuest Properties represented the landlord. Matt Reed of SHOP Cos. represented the tenant.
Popshelf has leased 10,277 of retail space in Humble Shopping Center, 20845 Hwy. 59 N, Humble, from Townsen Humble Center LP. Kevin Sims and Nick Ramsey of NewQuest Properties represented the landlord. Mark Raines of JLL represented the tenant.
Fat Boys Pizza has leased 3,850 sf of retail space in Katy Grand, located at the intersection of Interstate 10 and Grand Parkway/TX 99, Katy. Rebecca Le and Heather Nguyen of NewQuest Properties represented the landlord. Brian Ashby and Thomas Nguyen of CBRE represented the tenant.
La Roca Restaurant has leased 2,028 sf of retail space at 7069 Beechnut St., Houston, from Emerik Properties Corp. Bob Conwell of NewQuest Properties represented the landlord in the direct deal.
