Local Investor Wins Chase for NewQuest’s Shops at Rock Creek in NW Houston
June 21, 2023
HOUSTON – NewQuest Properties has sold the one-year-old Shops at Rock Creek in northwest Houston to a private local investor following a heated rally in a best-and-final among six would-be buyers vying from coast to coast.
The class A prize is a 21,250-sf project with a value-add component, a 32,726-sf vacant pad site, at 14119 Grant Rd. in Cypress. The 90%-leased Shops at Rock Creek is shadow-anchored by a 90,000-sf H-E-B grocery store.
“Any time there is an H-E-B nearby, it’s going to be attractive to investors,” says Marc Peeler, senior vice president of Houston-based NewQuest Properties. He and colleague Andrew Alvis, also an SVP, represented the seller.
The Shops at Rock Creek is a neighborhood essential retail center on 4.34 acres at the intersection of Spring Cypress and Grant roads in the top-ranked Cy-Fair Independent School District. The just-sold project’s one-mile trade area is populated by predominately college-educated residents with an average household income topping $168,000 per year.
The Shops at Rock Creek has cross-access with H-E-B. It also boasts a pair of drive-through end caps that are leased to Smoothie King and Jeremiah’s Italian Ice.
“The cross-access, dual drive-throughs and value-add component of the vacant pad site added extra juice to the deal,” Peeler says. “It is a strong brand-new asset that we were able to capitalize in a high interest rate environment.”
The new owner has gained entry to a suburban pocket teeming with development activity. The Shops at Rock Creek is surrounded by upscale master-planned communities with more than 75,000 single-family homes, of which 11,000 are brand-new. Stephen Berchelmann and Alexandria Tatem of Foresite Commercial Real Estate represented the buyer.
The Shops at Rock Creek captures morning and evening commuters. More than 36,000 vehicles per day pass the project, which is readily accessible to FM 249 and US Hwy. 290.
NewQuest wrapped up construction on the project in 2022. At sale time, there were just two inline vacancies of 1,330 sf and 1,050 sf.
Key to the Shops at Rock Creek’s tenancy is the adjacent H-E-B, which attracts more than 1.7 million customers per year. An estimated 52% of the shoppers live within the five-mile trade area.
“The beauty of the Shops at Rock Creek is the cross-access. It’s a huge dynamic,” Peeler says, “and H-E-B rarely will agree to that.”
SOUTH TEXAS SALES
David Jin has acquired a 3,075-sf retail building on 0.74 acres at 14441 FM 2920 Rd., Tomball, from NewQuest Properties. Marc Peeler of NewQuest Properties represented the seller. Rick Ragan of NewQuest Properties represented the buyer.
SOUTH TEXAS LEASES
French Quarter has leased 5,672 sf of of retail space in Boardwalk Crossing, 25220 Kingsland Blvd., Katy, from Boardwalk Crossing LLC. Bob Conwell of NewQuest Properties represented the landlord. Wilfred Logan of Coldwell Banker Realty represented the tenant.
K Star Salon & Spa has leased 2,100 sf of retail space in Shops at Sedona Lakes, located at the intersection of TX 288 and Bailey Avenue, Manvel, from NewQuest Properties. Lara Lee LaMendola of NewQuest Properties represented the landlord in the direct deal.
The Joint Chiropractic has leased 1,050 sf of retail space in Chambers Town Center, located at the intersection of Interstate 10 and TX 146, Baytown, from NewQuest Properties. Bob Conwell and Austen Baldridge of NewQuest Properties represented the landlord. Independent broker Jim Pappas represented the tenant.
CENTRAL TEXAS LEASES
Victoria’s Secret has leased 6,841 sf of retail space in Creekside Town Center, located at the intersection of Interstate 35 and FM 306, New Braunfels, from NewQuest Properties. Nick Ramsey and Kevin Sims of NewQuest Properties represented the landlord. David Shelton of Segovia Partners LLC represented the tenant.