HOUSTON—HFF has closed the sale of Spring Cypress Village, a 101,371-square-foot, grocery-anchored retail center in northwest Houston.
HFF marketed the property on behalf of the seller, Delaware Life Insurance Company, formerly known as Sun Life Assurance Co. of Canada (US), through its advisor, Guggenheim Partners. Phillips Edison and Co. purchased the asset for an undisclosed amount.
Spring Cypress Village is situated on 15.7 acres at the intersection of State Highway 249 and Spring Cypress Road. The grocery-anchored property was renovated in 2007 and is leased to national and regional tenants, including Sprouts Farmers Market, Spec’s Liquor, YES Kids Fitness, Wolfies Bar & Grill, State Farm Insurance, Earthwise Pets and afreestanding Burger King.
The HFF investment sales team representing the seller was led by senior managing director Rusty Tamlyn, managing director Ryan West and associate director Matt Berry.
“Spring Cypress Village is just one of a few assets where Sprouts was able to breathe new life into an older, yet well-located project in Houston,” West said. “We recently sold Kirkwood Marketplace, another asset where Sprouts backfilled the anchor position and we are currently marketing Copperfield Village where the same scenario played out in an old Randalls’ box.”
“The regeneration of these assets is the result of pent up tenant demand in a tempered retail development environment,” Berry added. “For that same reason, buyers are able to underwrite significant rental growth across the small shop space as any new retail project will often require nearly double the rent most of these established small shop tenants are currently paying in these projects.”
Guggenheim Partners is a global investment and advisory firm with more than $210 billion in assets under management.