Cap Rate: Confidential
Size: 43,237 SF
Lot Size: 0.80 Acre
Marcus & Millichap is pleased to offer Garden Oaks Center (“Center”) in Houston, Texas for your consideration. Located at the eastern entry to the highly acclaimed Garden Oaks neighborhood, Garden Oaks Center is 100 percent occupied by popular tenants including Pinks Pizza, Shepherd Park Draught House and Molly’s Mutt House. All five tenants have NNN leases and average rent for the Center is $24.54 per square foot, significantly lower than rates for new leases in the submarket.
Garden Oaks Center fronts on North Shepherd Drive (Highway 261), one of Houston’s major north / south highways with more than 41,200 cars per day driving by the Center. It intersects Houston’s most important thoroughfares including the 610 Loop (less than one half mile to the south of the Property), Interstate 10 / Katy Freeway, Westheimer Road, Richmond Avenue, and U.S. 59 / Southwest Freeway. West 34th Street is a major commercial and residential east / west road which intersects other important thoroughfares in the Garden Oaks | Oak Forest Neighborhood including Ella Boulevard, TC Jester Boulevard and U.S. 290 / Northwest Freeway.
Demographics in the area are exceptional and the average household income exceeds $112,300 and $91,000 within a one and three mile radius of the Center respectively. As a result of these strong demographics, the submarket’s stellar geographic location in Houston and its many other strong attributes, two major grocers are opening less than one mile from Garden Oaks Center in 2018. Whole Foods is opening its 365 concept to the east of the Center on Yale Street and the 610 Loop. Additionally, HEB Grocery is opening a two-story, 92,000+ square foot center at 2300 North Shepherd to the south of Garden Oaks Center. The entry of these two grocers to the immediate area is nothing short of a game changer for the neighborhood, and the Center is perfectly located to reap the benefits.
Opportunities to acquire high-quality shopping centers in irreplaceable close-in locations are exceedingly rare in Houston. When coupled with the mitigated risk afforded by the Center’s below market rent and the future upside opportunity inherent in the same, Garden Oaks Center is a compelling investment that truly cannot be missed.