HOUSTON — (Realty News Report) – 35 South Capital, a newly formed real estate investment firm, has acquired an 86-year-old shopping center in the heart of West University Place.
Sitting directly across from West University Elementary School, the two-story property features street-level retail and office and studio space on the second floor. The building is fully leased and occupies a prominent corner at the northeast intersection of University Boulevard and Edloe, with the property address listed as 3642 University Blvd.
The new owner will partner with Michael Hsu Office of Architecture, known for projects such as the M-K-T in The Heights, to modernize the center while reinforcing its connections to the surrounding community and preserving the strong tenant mix. One of the property’s notable tenants is the acclaimed Studio 3 hair salon, which adds to the center’s neighborhood appeal.
The center was purchased from a partnership led by James Reid and represents the first acquisition by 35 South Capital’s inaugural vehicle, The Front Porch Fund. The transaction marks the company’s entry into active portfolio building within the Texas market.
Founded in 2021, 35 South Capital focuses on investments across the Texas Triangle—the economic hub that links Houston, San Antonio, Austin and Dallas–Fort Worth. The firm’s founders bring decades of combined experience across development, investment and operations. One of the partners recently completed the redevelopment of Southside Commons at 4191 Bellaire Blvd., a project that repurposed the former Palace Bowling Lanes site.
John Morton serves as chief executive officer of 35 South Capital and brings more than 20 years of industry experience. Before helping to launch this firm, Morton founded Triple Crown Investment Group, a Houston-based family office and real estate investment company that developed Southside Commons. Morton said the team will leverage its relationships and market knowledge to originate and execute high-quality real estate investments across Texas.
“We’re Texans through and through, and by making the most of our connections and experience, intend to procure best-in-class real estate investments around the state,” Morton said. “Our collective knowledge in this sector will assist in identifying properties and projects with high ROI for our investors. And our unique set of skills will make for an effective, synergistic business strategy primed for a noticeable impact in the Lone Star State.”
The firm was launched by four industry veterans. Chairman Steve LeBlanc is a co-founder and senior advisor of CapRidge, a real estate investment firm focused on value office acquisitions. John Anderson, chief financial officer, is co-founder of CJN Investments, a boutique private equity firm that invests in local businesses and real estate throughout the greater Houston area and across Texas. Ryan Haley, chief operating officer, previously founded Barbour Investments, a Houston-based real estate development and investment company focused on boutique projects. Together with Morton, these leaders combine complementary skills across acquisition, finance, development and asset management.
Collectively, 35 South Capital’s leadership team has more than a century of experience across major property types and has worked with publicly traded real estate investment trusts, large institutional investors, private equity funds, and development companies. The Front Porch Fund’s initial strategy is to source and execute value-add and opportunistic projects in Texas’ four fastest-growing markets—Houston, Dallas/Fort Worth, Austin and San Antonio—markets that continue to lead the nation in job and population growth.
The firm’s mission is straightforward: apply extensive industry experience to identify market opportunities and deliver attractive, risk-adjusted returns for investors. “We are four, like-minded entrepreneur partners with a long history of collaboration,” said Chairman Steve LeBlanc. “It’s a natural next step for us to come together to build a Texas-focused investment platform buoyed by the tailwinds of the Texas economy. We are looking forward to a bright future working together.”
June 13, 2021 Realty News Report Copyright 2021
For readers interested in Texas real estate: Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins is recommended for a deeper look at Houston’s market dynamics.
NEW – Ebook edition available
Photo: Courtesy 35 South Capital
File: West University Center Sold (Built Circa 1935)
File: (2) Southside Commons, West University Center Sold to 35 South Capital. Michael Hsu. James Reid. Rabon Reid. Studio3. John Morton. Steve LeBlanc. West University Place.