H-E-B Opens Two-Story Grocery Store at Meyerland Plaza

HOUSTON – (Realty News Report) – H-E-B has reached an agreement with Fidelis Realty to build a new two-story grocery store at Meyerland Plaza along Loop 610 in southwest Houston, the company announced Thursday.

The 95,000-square-foot development, first reported in October by Realty News Report, will replace the H-E-B at Chimney Rock and South Braeswood that flooded during Hurricane Harvey and in an earlier storm.

“Construction will begin in the first quarter of 2019 with completion scheduled for the following fall,” H-E-B said in a news release.

The design calls for ground-level parking with a BBVA Compass Bank on the first floor and the grocery store on the second level, the San Antonio-based grocer said.

Situated on the northwest side of Meyerland Plaza near the corner of Beechnut and Endicott streets, the new H-E-B will connect to the existing J.C. Penney by a skybridge.

Meyerland Plaza, originally built in 1957 and redeveloped about two decades ago by Ed Wulfe, is home to several big-box retailers and a J.C. Penney. The 950,000-square-foot center is owned by a partnership led by Alan Hassenflu’s Bellaire-based Fidelis Realty Partners and BlackRock Realty Advisors of New York. The property was recently refinanced with a $93 million loan from John Hancock Life Insurance Co.

Covering roughly 50 acres just south of the City of Bellaire, Meyerland Plaza benefits from strong local demographics and spending power. The center dates to an earlier era of retail development, prior to the rise of fully enclosed, climate-controlled malls.

H-E-B has been actively expanding its footprint inside Houston’s Inner Loop, where it already operates several stores. Local reports indicated H-E-B had contracted to buy a site at the northwest corner of West Alabama and Kirby, near other stores the company owns, though that specific transaction was not confirmed by Realty News Report.

With no H-E-B currently south of Bissonnet Street in southwest Houston, the chain paused on securing an additional southwest site while pursuing multiple Inner Loop locations. The loss of the South Braeswood store to flooding, plus the temporary closure of the Bellaire store while a new two-story location is constructed nearby, created a notable gap in H-E-B coverage across southwest Houston. Customers from that area have been traveling to the Buffalo Speedway store near West University Place or to locations in Missouri City. Some competitors might have moved faster to fill the void, altering shopping patterns as they established a broader presence.

About 197,000 people live within three miles of Meyerland Plaza, and approximately 508,000 live within five miles, underscoring the site’s strong trade area.

Meyerland Plaza’s tenant mix includes big-box retailers such as Bed Bath & Beyond, Marshalls, Best Buy and J.C. Penney, along with several chain restaurants. The freestanding BBVA Compass Bank building, more than 50 years old and flooded during Hurricane Harvey, is expected to be demolished; the bank remains closed following the storm.

“H-E-B is committed to Meyerland and stands by this community as it rebuilds from Hurricane Harvey’s devastating floods,” said Cyndy Garza Roberts, H-E-B Public Affairs, Houston. “We will build a store that caters to the needs of the Meyerland community and we look forward to being a part of the neighborhood’s next chapter of growth.”

The new store will feature a kosher bakery, sushi counter, floral department and an expanded beer and wine selection, H-E-B reported.

H-E-B, with annual sales exceeding $24.6 billion, operates more than 390 stores across Texas and Mexico.

Fidelis Realty owns and develops multiple retail centers in Texas and beyond.

Dec. 21, 2017 Realty News Report Copyright 2017