HOUSTON-A joint venture partnership comprised of an URDANG investment fund and RCG Ventures LLC has bought Louetta Central Shopping Center, an 180,000-square-foot property anchored by Kohl’s, Ross Dress for Less, and Michael’s.
Urdang Value-Added Fund II LP and RCG Ventures acquired the eight-year-old property from two Texas-based developers in an off-market transaction. It featured assumable financing with aggressive principal reduction via a 20-year, fully amortizing loan. The sale price was not disclosed, but similar properties in the area have sold for $130 per square foot to $150 per square, which translates into a sale price of $23.4 million to $27 million.
“Due to market conditions and our willingness to assume the existing loans, we were able to acquire one of the strongest retail centers in north Houston at a compelling price,” says David Rabin, managing director of Urdang Capital Management, which manages Urdang Value-Added Fund II LP. URDANG is part of BNY Mellon Asset Management.
Located on 16.5 acres at the southeast corner of Interstate 45 North and Louetta Road, the shopping center is 99% occupied. It is shadow-anchored by a Wal-Mart SuperCenter that was not part of the transaction.
The three anchor tenants, along with Famous Footwear, are situated in a 148,924-square foot building. The balance of the project is comprised of a freestanding Bank of America and Whataburger, a 10,000-square foot, three-tenant building and a 13,100-square foot, six-tenant pad building situated between the Wal-Mart ring road and Interstate 45.
The 86,584-square-foot Kohl' s lease is good through January 2023. Other tenants include Payless ShoeSource and Radio Shack.
“We were attracted to this center due to the combination of location, access, visibility, and quality of tenancy,” says Mike McMillen, principal of RCG Ventures. “Louetta is located in the center of northern Houston’s economic drivers, and we believe the asset is well positioned to capitalize on northern Houston’s future employment and population growth.”
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