MetroNational Buys CityCentre’s Retail Space, Market briefs

In Houston, MetroNational, a major Houston real estate organization, has purchased the 309,144-SF retail component of the CityCentre multi-use development in West Houston.

Developed by the Midway company, CityCentre, located at the southeast corner of Interstate 10 and Beltway 8, is a 47-acre, pedestrian-oriented development that was named ULI Development of the Decade by the Urban Land Institute.

MetroNational is the developer of the 300-acre Memorial City, a close-by neighbor of CityCentre, which successfully combines retail, residential, office and hotels.

“For the last 15 years, we have watched and admired how well (Midway Chairman) Brad Freels and Midway have enhanced the customer experience with the CityCentre offering,” said Jason Johnson, CEO of MetroNational. “We believe CityCentre is a legacy asset that will perform for many more decades. Together, Memorial City and CityCentre expand the footprint of premier amenities, supporting our vision for a ‘city within the city.’ This transaction not only enhances our portfolio but also underscores a long-term commitment to positioning Memorial as one of Houston’s most dynamic business and leisure destinations.”

Midway is noted for developing walkable, multi-use communities such as the transformative 150-acre East River near the edge of downtown and the Central Park Post Oak near the Galleria.

“When Midway began developing CityCentre 20 years ago, our goal was to create a place that not only enriched the community but would stand the test of time, and I believe we’ve accomplished that,” said Brad Freels, Chairman of Midway. “Our next goal was to ensure CityCentre’s continued success by aligning it with organizations that think generationally. MetroNational and the Johnson family embody that philosophy.”

MetroNational will do more than preserve the success of CityCentre. Observers should expect upgrades and new innovations expressed with a refreshed vision. Radom Capital will be part of the plan for the future, MetroNational said.

Radom Capital is a Houston firm that built a reputation for transforming old retail and industrial projects into popular multi-use properties designed to be a good match for the surrounding neighborhood. Radom Capital developed the Montrose Collective, a multi-use boutique project at Montrose Boulevard at Westheimer, that was purchased by Hines last summer for $137.6 million or $727 per SF.

“We are proud to partner with MetroNational and CityCentre on this exciting opportunity,” added Steve Radom, Managing Principal of Radom Capital. “Their vision for vibrant, connected destinations aligns perfectly with our commitment to delivering best-in class spaces that bring people together.”

MetroNational and Radom have also partnered to redevelop a commercial property into Greenside, a community retail hub on the north side of Interstate 10 near Gessner.

MetroNational’s move to acquire the retail component of CityCentre comes on top another big play.

In In August, MetroNational purchased 990 Town & Country Blvd., a 442,042, SF, Class AA office tower on the northern edge of City Centre. JLL is now leasing the office building. The office tower has commonly been called the Marathon Oil building because Marathon was the initial occupant. The Marathon Oil company was purchased by ConocoPhillips and the building was vacated shortly thereafter.

In the retail purchase, MetroNational represented itself in the transaction, with JLL serving as the broker representing TriGate Capital in the sale.

“CityCentre’s retail is a one-of-a-kind, pedestrian-friendly destination that perfectly aligns with MetroNational’s focus on high-quality, multi-use environments,” said Scooter Hicks, President of MetroNational. “Its’ dynamic blend of restaurants, retail and entertainment makes it a natural complement to our Memorial City portfolio.”

MetroNational’s portfolio spans office, multi-family, retail, restaurant, hospitality, and healthcare, fully integrating best-of-class services, while providing the highest quality and enduring value. Founded in 1954, the multi-generational, family-owned company oversees more than 10 million SF of commercial real estate assets, primarily located in Greater Houston. Its landmark asset, Memorial City, is a 300-acre multi-use development anchoring the Memorial District.