HOUSTON—BLVD Place is a 216,692-square-foot mixed-use retail and office project with 1.42 acres of additional developable land in the Uptown District/Galleria area. Anchored by Whole Foods, BLVD Place is the only grocery-anchored major mixed-use development in Houston.
Located at 1700 Post Oak Blvd. in the epicenter of Uptown, BLVD Place is in one of the largest business districts in the country and has access to Loop 610, US-59 and Westpark Tollway. It is proximate to River Oaks, Tanglewood, West University Place, Memorial Village and Bellaire, among Houston’s affluent neighborhoods. More than 173,193 residents earning an average annual household income of $120,037 live within a 3-mile radius of the property.
Holliday Fenoglio Fowler LP recently worked on behalf of the borrower, Whitestone REIT, in securing a 10-year fixed-rate acquisition loan in the amount of $80 million for BLVD Place. HFF also represented the seller, a partnership of San Francisco-based Bailard Inc. and Wulfe & Co., in the sale of the property.
The HFF debt placement team representing the borrower was led by senior managing director Matt Kafka and director Kelly Layne. Kafka was also involved in brokering the sale of the property, along with senior managing directors Wally Reid, Rusty Tamlyn and Ryan West, managing director Davis Adams and director Trent Agnew.
“Houston has been the number one ranked city in the USA for total retail returns in the past seven and 10-year period ending December 31, 2016 according to the NCREIF index, which tracts institutional quality real estate. This is based on the city’s strong population growth and rental income as development which has been moderate,” Tamlyn tells GlobeSt.com. “BLVD Place is arguably the number one or two intersection in the city of Houston and has a higher per-capita income in a 3-mile radius than Highland Park in Dallas and Rodeo Drive in Beverly Hills.”
The additional developable land included in the purchase will give the borrower the ability to build an estimated 137,000 square feet of additional leasable space. The project is currently 99.2% occupied and home to a diverse mix of tenants in addition to Whole Foods, including Frost Bank, Post, The Boardroom, Verizon, Elaine Turner, Sozo Sushi and True Food.
“The iconic nature of this real estate had capital in a frenzy when the perception of the Houston market was at its lowest,” West added. “This was clearly one of those rare opportunities to capitalize on owning one of the highest-profile corners in the fourth largest city in the country. We commend Whitestone for their recognition of this opportunity.”