Investor Buys New Sprouts Store, Market briefs

In Richmond, Texas, ExchangeRight purchased a brand-new Sprouts Farmers Market grocery store in Richmond, on the southwest side of Houston.

JLL Capital Markets’ Net Lease Team worked on behalf of the seller, GBT Realty.

The buyer, ExchangeRight, is a DST operator based in Pasadena, Calif. JRW Realty represented ExchangeRight, which has more than $6.7 billion in assets under management with over 1,300 properties and 26 million SF throughout 47 states

Sprouts Farmers Market is one of the largest and fastest growing specialty natural goods grocery store chains, on track to open 35 locations in 2025. With 130 approved locations in its pipeline and long-term plans to expand to 1,400 locations nationwide,

The Ideal Size of Today’s Sprouts, 23,000 SF

Sprouts, which has more than 450 stores including about 60 in Texas, has laid out plans to open at least 35 stores this year. The company closed three underperforming stores in the Houston area in 2023 as part of a strategy to focus its growth on smaller format stores around 23,000 SF.

The recently purchased Sprouts in Richmond is positioned as an anchor to Read King’s Waterview Town Center, a 134-acre retail development that is set to feature over 1 million SF of retail space at full buildout.

Located at the high-growth intersection of Grand Pkwy and Harlem Rd, the development offers direct visibility to 42,000 vehicles per day and access to Houston’s 7th top-selling large-scale planned community, Aliana. NewQuest and Property Commerce have also been active in retail development near Aliana, a 2,000-acre community in Fort Bend County.

The new 23,256-SF grocery store in Richmond is the seventh Sprouts location in the greater Houston area. Operating under a long-term net lease, Sprouts is well-positioned to serve one of Houston’s fastest growing submarkets with an affluent residential base earning $134,000 in average household income.

Sprouts Farmers Market (shares traded on the Nasdaq exchange with the symbol: “SFM”) is one of the largest and fastest-growing specialty natural and organic grocery chains in the United States. As of March 30, Sprouts operated 443 stores in 24 states. The Phoenix-based company expects to open at least 35 new locations in 2025.

Recent Comp:

In Nashville, Tenn., Hanley Investment Group Real Estate Advisors and CP Partners arranged the $9.45 million sale of a newly constructed, single-tenant property occupied by Sprouts Farmers Market in Nashville. The store sits on a 2.9-acre parcel.