Fidelis Realty Snags 273,000-SF Willowchase Shopping Center

HOUSTON-Locally based Fidelis Realty Partners has acquired the 273,274-square-foot Willowchase Shopping Center from Wheeler Interests of Virginia Beach, VA. The buyer plans to upgrade the 1980s center, which is anchored by a Fiesta Mart and is home to tenants including Jo-Ann Fabrics, Family Dollar and Dots.

According to the Harris Central Appraisal District, Wheeler Interests has owned the center at 12792 Willow Chase Dr. for close to 10 years. The center is currently 85% occupied. Brokering the transaction were Helen Putterman and Vera Thomas from Cohen Real Estate in New York City.

"This is an older, well-located center, that's due for a redevelopment," comments Nick Hernandez, Transwestern's managing director. Hernandez, who had no involvement with the sales transaction, tells GlobeSt.com that he's seen Fidelis' redevelopment plan, which includes creation of a couple of pads and a remodel of the balance of the center. "It's at a great intersection," he goes on to say. "It's catty-corner from Willowbrook mall, and the shopping centers are filling up here. This one is well-located and should do well with the right development."

Interestingly enough, there is a great deal of investor interest in retail throughout the metro area these days; Hernandez points out that Houston is now considered a gateway city, meaning capital investment is flowing into the area. As such, "there's a lot of competition for very few shopping centers that are available, and a lot of off-market transactions being done now," he says.

A recent report from Delta Associates, an affiliate of Transwestern, supports Hernandez's comments. The report notes that vacancies at the end of 2012 were 9.9%, well under the 11% reported at the end of 2011. The report forecasts a continued strong market with help from a growing consumer population and more retailers taking space.  Investment sales activity during Q1 2013 topped $110 million, with the forecast that property sales would likely accelerate in 2013 as more investors flood the market.