Heitman Wins 585,915-SF Retail Portfolio for $100M Plus

THE WOODLANDS, TX-With Texas once again on its radar screen, Chicago-based Heitman LLC has bought 585,915 sf of prime retail in two shopping centers near Woodlands Mall. Sources say the class A space has brought north of $100 million.

In a short spin on the market, the portfolio cornered 15 to 20 offers from would-be buyers eyeing the chance to control what amounts to 70% of the community and power center space surrounding the 1.4-million-sf mall, Barry Brown, managing director in Dallas for Holliday Fenoglio Fowler LP, tells GlobeSt.com. The 84%-leased portfolio consists of the 375,064-sf Pinecroft Center I and II at 1600-1700 Lake Woodlands Dr., including a 17-screen Cinemark Tinseltown at 1600 Lake Robbins Dr.; and the 210,851-sf Wood Ridge Plaza at 27100-800 IH 45 North. The New York City-based DRA Advisors LLC on behalf of institutional investors brought the Woodlands package to market in a no-ask, free-and-clear scenario.

The 54-acre acquisition is believed to be Heitman’s first piece of retail in the Greater Houston market. In a renewed focus on Texas, Heitman last year bought the Great Hills portfolio in Austin. “They’ve made a pretty good run in the past 12 months,” says Brown, who teamed with HFF managing director Jim Batjer to cinch the deal for DRA.