JLL arranges sale, acquisition loan for Houston retail center
The Kroger-anchored property is 99% leased
HOUSTON, November 12, 2019 – JLL announced today that it has closed the sale of and arranged acquisition financing for Cypress Pointe, a 173,344-square-foot, Kroger-anchored shopping center in the Houston-area community of Cypress, Texas.
JLL marketed the property on behalf of the seller, Weingarten Realty Investors. Tarantino Properties purchased the asset and engaged JLL to place the 10-year, fixed-rate acquisition loan with Morgan Stanley Bank, N.A. JLL will service the securitized loan. Additionally, in a separate transaction, JLL marketed a 4,517-square-foot, single-tenant retail building that is triple net leased to Chick-fil-A and adjacent to Cypress Pointe on behalf of the seller to the buyer.
Cypress Pointe is 99.1% leased and home to a diverse tenant roster of best-in-class grocery, discount
department, food and beverage, professional services and health and beauty tenants. Situated on 16.43 acres at 302-430 F.M. 1960 West, the property is along one of north Houston’s primary east-west roadways proximate to where it intersects at Interstate 45. The retail center is major employment centers, including Springwoods Village, Pinto Business Park, North Houston District and George Bush Intercontinental Airport. More than 106,000 residents earning an average annual household income of $75,409 live within a three-mile radius of Cypress Pointe.
The JLL Capital Markets investment advisory team representing the seller included Managing Director George Cushing, Senior Vice President Wendy Vandeventer and Vice President Meaghan Gallacher.
The JLL Capital Markets debt placement team representing the borrower was led by Managing Director Cortney Cole and Senior Vice President James Brolan.
“I am excited to add Cypress Pointe Shopping Center to our portfolio of income-producing assets,” said Anthony Tarantino, president of Tarantino Properties, Inc. “Cypress is a well-located and tenanted shopping center with Kroger as an anchor, and Ross Dress for Less and Five Below as new tenants.”
According to a recent JLL Retail Outlook report, second-quarter 2019 net absorption in U.S. shopping centers (i.e., community, neighborhood and strip centers) remained positive at 1.9 million square feet, with the majority coming from neighborhood center demand. Additionally, neighborhood centers – like Cypress Pointe – are sought after among small retail locales.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
Weingarten Realty Investors (NYSE: WRI) is a shopping center owner, manager and developer. At June 30, 2019, the Company owned or operated under long-term leases, either directly or through its interest in real estate joint ventures or partnerships, a total of 173 properties which are located in 17 states spanning the country from coast to coast. These properties represent approximately 33.9 million square feet of which our interests in these properties aggregated approximately 22.2 million square feet of leasable area. To learn more about the company’s operations and growth strategies, please visit weingarten.com.
Established in 1980, Tarantino Properties is a full-service real estate company specializing in profitable real estate. With a full range of services including management, brokerage, leasing and renovation services for commercial and multi-family communities, Tarantino has quickly become one of the leading property management firms in Texas and is currently providing the same services in 12 other states. Tarantino has fostered a company culture of excellence, performance and commitment. Visit tarantino.com for more information.