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HOUSTON-Bally's Total Fitness will anchor a 90,500-sf retail center in the Park 10 Regional Business Center. The fitness operator signed a 20-year lease for 30,000 sf of the project, being developed by a first-time joint venture between two Texas companies.
Donna Arp, president of Realty Capital Partners Inc., tells GlobeSt.com that the North Texas investment group kicked in $5 million of equity for the $16-million project planned for 12.6 acres at the intersection of Interstate 10 and Barker Cypress Road. The local developer, Peyton Cottrell Interests Inc., has built three other Bally's-anchored centers in the Greater Houston market.
"We think Peyton is an excellent developer," Arp says, "and we like the Houston market so we're very excited about the project."
The center, which will include four pad sites totaling about 35,000 sf, is across the street from a 54-acre medical campus. Arp says construction on the still-unnamed center will start within 90 days. Delivery is planned for late 2006.
Arp says the per sf rate hasn't been set, but Cottrell's in-house team is tasked with filling the space. Pad sites will be sold for $18 per sf to $25 per sf. Arp says the developers are already holding a contract for one pad site.
In Arp's opinion, the area is underserved by retail. The developers are targeting large specialty retailers and some national retailers for the roster.
Arp says Realty Capital Partners is searching for additional projects in the city. "You can never lose with Houston," she says.
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