NewQuest’s Five-Year Winning Streak Facilitates Sale of JV’s Crown Jewel
July 28, 2022
HOUSTON – Offering insight into a true success story, NewQuest Properties is crediting its leasing, asset and property management teams for creating the dynamics for the sale of a prized power center in one of the highest barrier-to-entry markets in Greater Houston as a joint venture partnership winds down.
“Our teams have been adding value to Market Square at Eldridge for five years. Through their commitment, it became a best-in-class asset in the JV’s portfolio,” says Jay Sears, co-founder and managing partner of Houston-based NewQuest Properties.
The 262,556-sf Market Square was 98% leased at sale time. It was nine years old when NewQuest and equity partner, Chicago-based Walton Street Capital LLC, acquired the class A project at 2660 Eldridge Parkway S. in Houston. The 32.52-acre infill property is situated midway between the city’s internationally acclaimed Energy Corridor and Katy, one of the nation’s fastest-growing suburban pockets.
“NewQuest has held onto 1.6 acres of the original site for future development. We want to finish what we’ve started at this location by adding to its dynamics and long-term sustainability,” says Aspen Garcia, who has served as Market Square’s asset manager since the JV’s acquisition.
Equally instrumental in the project’s success has been NewQuest’s leasing team of Josh Friedlander and Austen Baldridge and property manager Stephen Casalini. Prior to the sale, the brokers completed all lease renewals for this year and secured two preleases, totaling 4,200 sf, for an under-construction, 5,600-sf building that will now be completed by the new owner, Wu Properties of Houston.
During the JV’s hold, the leasing team filled 94,425 sf in the 33-tenant center, predominately national brands with investment-grade ratings. Among the newcomers were anchors Burlington Coat Factory, Old Navy and Party City, each one emerging as high-performing stores for their respective chains, as is the case for shadow anchor Target and others in the A-list lineup. Also, NewQuest is responsible for 21,000 sf of ground-up development.
Market Square consistently is ranked in the top 5% of U.S. centers for customer visits, with more than 4.1 million per year, according to Placer.ai. Classified as “last mile retail,” there are 46,360 households with a purchasing power of $5.6 billion within a three-mile trade area.
Market Square was the next-to-the-last holding in the JV’s portfolio, which at its peak held 14 properties. The partnership is marking its eighth year.
“Market Square was clearly the crown jewel of the portfolio. What NewQuest has accomplished with this property in terms of value and prominence is a testament to our corporate culture of teamwork,” Sears says.
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