NewQuest Team Arranges Sale of Fully Leased, Kroger-Anchored Center in Harris County
October 26, 2021
HOUSTON – In a Texas two-step approach, NewQuest Properties has completed the sale of the fully leased, 80,748-sf Kroger Junction in eastern Harris County after securing a junior anchor for a longtime vacancy.
The historically well-leased shopping center is located at 2619 Red Bluff Rd. in Pasadena. David Luther, Dakota Workman and Austen Baldridge of NewQuest Properties took the asset to market after its lease-up, attracting nine offers for the local seller, 2619 Realty Holding LLC.
Farah Investments LLC of Houston won the deed to Kroger Junction. NewQuest’s investment sales team also represented the buyer.
“It’s one of the core retail assets on the north side of Pasadena,” says Workman, an associate with Houston-based NewQuest’s investment sales team.
Kroger Junction was developed in 1987 on a 6.56-acre tract near Beltway 8 and Pasadena Freeway. Its newest tenant is Furniture & Beyond, which leased 15,115 sf and the center’s only vacancy.
“The buyer knew he was stepping into cash flow on Day 1,” says Luther, executive vice president of the investment sales team. “Many of Kroger Junction’s tenants have been there at least five years.”
Kroger is marking its 36th year in the center. The Ohio-based chain, which occupies 45,528 sf, added a multi-lane fueling station in 2014 to its footprint.
Baldridge had a lease in hand with Furniture & Beyond within a few months of taking on the assignment. The retailer is a national chain with several locations in Greater Houston.
“Our ability to lease the elbow space and sell the center leverages two arms of our firm,” says Baldridge, a vice president. “But at the end of the day, the strong attraction is being anchored by a good-performing Kroger in a dense submarket of Houston.”
Kroger Junction is a mix of national and local tenants geared toward surrounding mature, working-class neighborhoods, with names like Family Dollar, H&R Block, Subway and Little Caesars on the marquee. The five-mile trade area has a population of 233,000 and an average annual household income of $70,000. Pasadena is the second-largest city in Harris County.
“Kroger Junction was a natural fit for private local investors,” Luther says, “and highly desirable to buyers who were comfortable with the Pasadena market.”
Check out other NewQuest Properties investment sales opportunities here.