The acreage at the northwest corner of Stuebner Airline and Louetta roads was assembled from seven owners in deals put together by Houston-based Yancey-Hausman Development Co. The Jacksonville, FL-based REIT will begin construction in the fourth quarter, Patrick Egan, Regency's senior manager of investments, tells GlobeSt.com. A ribbon-cutting is planned for September 2003.

An 80,000-sf H-E-B and freestanding Walgreens will anchor the development, designed with 50,000 sf of inline space. The property now houses Kleinwood Center, built out in 1978 with a 32,000-sf H-E-B Pantry and 13,000-sf Walgreens. The older properties will be left standing during construction, but razed when the new center delivers. Janus Funds and Spec's Liquor have committed to inline spots.

James Buis, Regency's managing director for the central region, said H-E-B projects the new and larger store will generate $39 million in sales or $500 per sf in the first operating year.

Of Regency's 41 retail centers in Texas, three are anchored by H-E-B stores: the Kleinwood Center, ticketed to be razed, and Hancock Center and North Hills Town Center, both in Austin. "H-E-B continues to gain market share in Texas," Buis said in a prepared statement, "and the successful completion of this development has allowed us to continue to improve this important relationship.