H-E-B-anchored power center near Houston sells to Fidelis Realty Partners

HOUSTON, Jan. 19, 2022 – JLL Capital Markets announced today that it has closed the sale of Shadow Creek Ranch, a 613,468-square-foot, H-E-B-anchored power center within the master-planned Shadow Ranch community in the Houston suburb of Pearland, Texas.

JLL marketed the property on behalf of the seller, EDENS. Fidelis Realty Partners LLC acquired the asset. Additionally, the new owner has engaged JLL to source post-acquisition financing.

Completed between 2007 and 2008, Shadow Creek Ranch is anchored by H-E-B, ranked the No. 2 grocer in America for 2021 by the dunnhumby Retailer Preference Index. The 97.7-percent-leased property is also home to a diverse lineup of national and local tenants, including Academy, Ashley HomeStore, Burlington, Dynamic Fitness, Hobby Lobby, Subway, Club Pilates, Men’s Wearhouse, Pure Barre and Salata. The sale includes 11 free-standing pad sites leased to popular tenants such as Taco Cabana, Frost Bank and Longhorn Steakhouse.

Shadow Creek Ranch is at 2805 Business Center Dr. in Pearland, a growing southern Houston suburb known for a recent influx of major corporate relocations. The retail center is within the 3,500-acre premier Shadow Creek Ranch master-planned, mixed-use, live-work-play development that features greenbelts, lakes and the majority of Pearland’s principal employers and retail space. The power center serves an affluent trade area that includes 79,126 residents with in a three-mile radius with an average income exceeding $138,000. The population has ballooned nearly 57 percent since 2010, and the current number of households is anticipated to grow 11.2 percent over the next five years.

The JLL Retail Capital Markets team representing the seller was led by Senior Managing Directors Ryan West and Chris Gerard, Senior Managing Director and Co-Head of U.S. Retail Capital Markets Barry Brown, Senior Director Wendy Vandeventer and Analyst and Katherine Miller.

“The sale of Shadow Creek Ranch reflects the state of the retail capital markets in Texas,” West said. “We had a deep pool of buyers pursuing a large-scale retail asset that was anchored by a high-octane H-E-B and big box retailers that emerged from a pandemic stronger than before.”

The JLL Capital Markets Debt Advisory team arranging the post-acquisition financing for Fidelis Realty Partners LLC includes Senior Managing Director Colby Mueck, Senior Director James Brolan and Associate Stuart Hepler.

According to JLL Research’s recently released United States Retail Outlook for the third quarter of 2021, the retail recovery is in full swing with demand returning to 2017 levels. Big-box retailers like the ones that call Shadow Creek Ranch home are posting solid performance and increasing the stability of power centers.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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