HOUSTON – (Realty News Report) – Sterling Organization has acquired the Cinco Ranch Shopping Center, a 97,266-square-foot, grocery-anchored retail center located in the Katy area of West Houston.
The property was purchased on behalf of Sterling Organization’s institutional grocery-anchored shopping center core fund, Sterling United Properties II, LP, for $21.25 million, or $218 per square foot.
Situated near Westheimer Parkway and Mason Road, the center is currently 94% leased and anchored by a 63,373-square-foot Kroger supermarket. Within a three-mile radius, the submarket serves more than 123,000 residents with an average household income exceeding $142,000, providing a solid customer base for tenants.
“We are pleased to add an asset of Cinco Ranch’s quality to our growing SUP II portfolio,” said Brian Kosoy, Managing Principal and CEO of Sterling Organization, based in West Palm Beach. “Our core fund’s strategy of investing in market-leading grocery-anchored shopping centers has provided significant downside protection during the COVID-19 pandemic. The stability and resilience these properties have demonstrated align with our expectations, and Cinco Ranch Shopping Center should deliver the consistent, durable cash flow our investor partners expect. We remain optimistic about the opportunities ahead for this fund and the sector as a whole.”
Cinco Ranch Shopping Center is Sterling Organization’s fourth asset in Texas and the eighth addition to the SUP II Fund, bringing the fund’s portfolio to eight grocery-anchored shopping centers totaling approximately one million square feet.
Cinco Ranch is a master-planned community spanning 8,100 acres, developed by Newland Communities and home to roughly 12,000 families. The community lies about 32 miles west of downtown Houston.
In a notable prior transaction for the area, LaCenterra at Cinco Ranch, a 412,900-square-foot mixed-use lifestyle center on 34 acres near the Grand Parkway, was sold in 2017. PGIM Real Estate, part of Prudential Financial, acquired the property from developers Vista Cos. and Amstar Group; Eastdil Secured represented the sellers. LaCenterra includes 273,522 square feet of retail (about 93% leased), 140,000 square feet of office space (approximately 89% leased), and two half-acre parks.
May 5, 2021 Realty News Report. Copyright 2021.
Image: Courtesy Sterling Organization.
File: Sterling Buys Cinco Ranch Center for $21 Million
For further reading on Houston development, see the book Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins.
File: (2) Sterling Organization. Westheimer Parkway. Sterling Buys Cinco Ranch Center for $21 Million