Grocery-Anchored Center Sold, Market briefs

In Houston, DML Capital has purchased The Shoppes at Kingsgate, a 156,343-SF, grocery-anchored neighborhood retail center in the Kingwood large-scale planned community located 27 miles from downtown Houston.

The center, built in 1980, is anchored by ALDI, a market leader in the grocery sector and one of America’s fastest-growing retailers. It is 95.2 percent occupied.

Chestnut Ridge Associates, LLC was the seller.

JLL Capital Markets represented the buyer, DML Capital.

“The Shoppes at Kingsgate an example of the opportunity DML is looking for as it continues to expand its presence throughout Texas,” said John Indelli of JLL.

JLL’s Ryan West, Michael Johnson and Michael King also participated in the sale.

Houston’s overall occupancy rate in most retail centers remains strong, but some space will be going vacant as big box stores close their doors, as stated by the third quarter retail report from CBRE.

Bed Bath & Beyond, which filed for Chapter 11 bankruptcy in April, has left behind a trail of empty stores.

A troublesome 40,000 SF retail space in Midtown has gone vacant. It was a 40,000 SF store Whole Foods at 515 Elgin on the ground level of Pearl Marketplace. The development, built by the Morgan Group, has 264 multifamily units on the floors above the store.

Houston’s third quarter retail occupancy rate stands at 94.8 percent, CBRE reported