HOUSTON-Lasco Development Co., besting at least 10 other would-be buyers, has acquired 70 acres to build a power center at the intersection of Beltway 8 and West Lake Houston Parkway in the city's northwest sector.
The purchase price wasn't disclosed, but land in the immediate area sells for $5 per sf to $6 per sf, according to industry experts. Based on the going rate, the local developer has paid $15 million to $18 million for the parcel.
The land tract, part of the 1,000-acre Spring Trace subdivision, was sold by Phoenix-based Marhaba Partners, which held onto an abutting 80 acres, says Bill Heavin of Grubb & Ellis Co. who represented Marhaba Partners along with colleague Matthew Herring. According to Heavin, the land speculators bought the land two years ago and put in infrastructure to prepare it for resale to commercial developers.
"This was a high-profile piece of property because the location is so hot," Heavin tells GlobeSt.com. "Lasco came in very early in the marketing process with strong interest." He says more than 10 investors made offers for the land, which could have been built out for commercial or residential uses because it's not zoned.
Heavin says Lasco Development has just started to lay out the size and design of the power center, which has yet to be named. He expects it will be 2006 before ground breaks. "For the next year, they'll be working on the land plan and lease commitments," he says, speculating the center will be at least 400,000 sf.
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