Local investment group RMM Properties LLC has purchased another retail center in southeast Houston, snapping up the 39,038-square-foot Centre South in a value-add play. NewQuest Properties brokered the acquisition of the asset, located at 11030 Kingspoint Road.
With Interstate 45 on its doorstep, the 3.3-acre property is located at a redevelopment hotspot near Almeda Mall, where a strong Hispanic population is the catalyst for a booming retail marketplace. The Newquest team of Kelley Workman, David Luther and Dakota Workman represented the out-of-state seller, Community Commercial Properties II LLC.
“You need the right owner to understand the demographics of this market,” said Workman, vice president of NewQuest Properties’ investment sales group. She also sourced and represented the buyer.
According to market reports, there are 62.8 million Hispanics in the U.S., representing the fastest growing population segment and highest-spending minority group. Research firm Claritas estimates 2020’s annual aggregate Hispanic household spending will reach $978 billion.
Centre South’s five-mile trade area has a population hovering 300,000. The average annual household income is nearly $75,000.
The center’s occupancy was 79.2 percent at sale time. Developed in 1970 and renovated in 2018, the project is anchored by Sherwin Williams, Brown Sugar BBQ and COVID-sidelined Club Rumba. RMM Properties, which has an in-house leasing team, has 6,000 square feet to fill in four spaces.
“During COVID-19’s early months, we signed three new, healthy leases. That really motivated the buyer,” Workman said.
The new tenants are Southside Driving School, Internet Café and La Fleur of Houston, a full-service event planner. A few renewals also were signed during the marketing period. RMM Properties financed the acquisition through Central Bank. Carlos Alvarez, senior vice president of lending, arranged the financing.