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HOUSTON-A local partnership has been formed to develop the Shoppes at San Felipe, a 61,234-sf shopping center with an estimated $15-million development tag. Construction on a 45,000-sf first phase is set to begin in the summer on four prime acres in the Galleria submarket.
Dean Lane, a principal with NewQuest Properties of Houston, is teaming with two private investors to develop the four-acre tract at the northeast corner of San Felipe Street and Voss Road, one of the busiest intersections in the metro area. "There's a lot of demand for new space that is designed well," Lane says. His partnership has tapped NewQuest Properties to manage the development and lease center, which will serve Tanglewood and the Memorial Villages, two of the city's most affluent and densely populated neighborhoods.
Lane tells GlobeSt.com that the first phase will be a two-story, L-shaped building with 38,000 sf of retail space and a 5,500-sf pad site that will be built out with a 3,000-sf Pei Wei Asian Diner. The first phase is slated for completion in second quarter 2006.
In summer 2006, the second phase will get under way with another the development of two pad sites. CVS has already committed to a 13,000-sf store and Wachovia Bank plans to build a 4,000-sf branch on it ground-leased land, according to Lane.
Lane says a ground lease and a 35-year-old center are preventing the Shoppes at San Felipe from rising in one phase. All leases expire in August 2006, he says.
The partnership assembled the land in two acquisitions. Two years ago, they bought the two-acre hard corner with the vintage shopping center from the Jamail Family Trust. Four months ago, they picked up an abutting two acres, which holds Glenchester Apartments.
Lane says NewQuest has started to raze the 1970s-vintage complex so the first phase of the Shoppes at San Felipe can rise. Lane Design Group of Houston is the architect. A general contractor has yet to be selected. Lane says the development will sport a Texas Hill Country design with a stone facade and metal roof.
Several retail tenants have expressed interest in leasing space in the Shoppes at San Felipe, Lane says. Richard's Liquors & Fine Wines has preleased 2,500 sf and Ritz Camera is expected to ink a pact for 2,000 sf. David Meyers and Eric Walker with NewQuest Properties are handling the leasing for a development with a quoted rent of $26 per sf to $36 per sf, triple net.
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