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HOUSTON-A local developer, in tandem with an East Coast investment firm, has acquired the 53,000-sf Shops at Oak Forest for a redevelopment project. The all-in development cost is expected to be $8 million to $10 million.

The Shops at Oak Forest, located at the intersection of West 43rd Street and Ella Boulevard in the Garden Oaks submarket, was bought by local firm, Wellington Development Co., and its equity partner, Eastbourne Investments Ltd. of Williamsville, NY. "The center will be redeveloped and repositioned in the market. It'll be torn down and we're going to build, more or less, 55,000 sf on that site," says Chris Hotze, Wellington's principal. He tells GlobeSt.com that construction is scheduled to begin in the second quarter. Completion is slated for summer 2007.

Hotze and Wellington partner Rocky Stevens got the center from Oak Forest Realty Inc. of Miami and Thalsha Inc. of Mexico City, the owners since 1964. Bill Sharp of Sharp & Associates Inc. in Houston represented the sellers.

The Shops at Oak Forest's tenant roster consists of RadioShack, Hallmark Cards, AG Edwards and a CVS Pharmacy. "The former owners did a great job with this as there aren't many long-term leases left in there," Hotze says. "This will provide us with the opportunity to move in relatively quickly and to reposition that site and the intersection for new retail."

Hotze says retail definitely is needed in the area. "This area is in need of a lot of basic retail services. And, we're hoping to have a mix of restaurants, a bank, dry cleaners and other types of neighborhood-type tenants," he says. "This will end up as a classic neighborhood grocery-anchored property."

The leasing agent for the new center is Josh Jacobs of Page Realty Partners Ltd. in Houston will handle preleasing for the upcoming project. Fernando Brave of Brave Architects, also from Houston, is designing it. The general contractor has yet to be determined.

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GlobeSt.com EXCLUSIVE: Retail JV Games Out $8M-Plus Redevelopment

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