Texas Real Estate Business

MAY 2016

Texas Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in Texas.

Issue link: https://texasrealestatebusiness.epubxp.com/i/674650

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Page 42 of 49

42 • May 2016 • Texas Real Estate Business www.REBusinessOnline.com KIMCO'S GRAND PARKWAY MARKETPLACE RETAIL CENTER TO BE ANCHORED BY TARGET Houston population continues to grow, as does the need for retail. By Haisten Willis T exas continues to be one of the hottest economies in the U.S., and the state's population has continued an upswing as well. While Houston's energy sector has been hit by falling oil prices, the metro area's population continues rising. With this growth comes increased de- mand for housing, ofce real estate and retail. Another efect of the population growth is the building of infrastruc- ture to help new residents move from place to place easier. One such project is a new toll road fve miles south of The Woodlands, a large master planned community north of Houston. The road is known as the Grand Parkway, and runs north from Sugar Land to the Rose Hill area, then cuts east until it meets Interstate 69. Kimco Realty is developing a retail development on a 65-acre site to ac- commodate growth in the corridor. The project is known as Grand Park- way Marketplace and is designed to bring today's leading retailers to the area with an understanding of the needs in the immediate trade area. Kimco purchased the site, locat- ed in Spring at the intersection of Grand Parkway and Kuykendahl Road, in December 2014 for the de- velopment of the 500,000-square-foot power center. The area includes 170,000 residents in a fve-mile radius, with an average household income of around $110,000. "We were attract- ed to this property due to the explosive growth that was going on in the north side of Hous- ton at the time," says Robert Nadler, president of Kimco Realty's central division. "We felt that the population was underserved and many of the na- tional retailers operating in Greater Houston were not penetrating this ex- ceptional demographic. The existing retail nodes were all six to seven miles away in each direction." The site is seven miles southwest of The Woodlands Mall and nine miles northeast of Willowbrook Mall. Exxon recently opened a new cam- pus on 385 acres that houses 10,000 white collar, highly educated and well-paid employees in its Upstream, Downstream and Chemical Service groups, consolidating a number of ofces the company has around the Houston market and several ofces from both coasts. The Exxon campus is only 3.5 miles from Kimco's Grand Parkway Mar- ketplace. Set to open in spring 2017, Grand Parkway Marketplace will be an- chored by a 126,000-square-foot Tar- get, with eight junior anchors already committed. The center is now leasing for the re- maining space. A groundbreaking cer- emony was held April 7 and about 75 percent of the space is pre-leased. "This will be one of the few subur- ban, large-format stores Target plans to open over the new few years," says Nadler. "Securing Target resulted in explosive interest from other tenants." Nadler adds that there will be a heavy emphasis on value-oriented fashion retailers, both national and regional. The project will also include a res- taurant village with four or fve res- taurants situated around a small lake that also services the storm water management system. "We will have a public boardwalk and community activity area that will be able to house various events and gatherings," says Nadler. "We antici- pate the restaurant village will serve as a co-anchor to the project. The com- bination of food oferings and retail of- ferings will extend the length of time our patrons spend at the property." Texas-based Brown and Gay Engi- neers is part of the development team, as is Levinson Alcoser Associates as the architect and Dallas-based EMJ Construction as the general contrac- tor. Grand Parkway Marketplace's unique architecture will include a combination of brushed stone with a chrome metal fnish and wood ele- ments. "The landscaping will be lush and inviting, creating a warm, welcoming experience from the time you enter the site to the time you leave," says Nadler. Given the overwhelming demand for the intersection, Kimco has sub- sequently acquired 35 acres across Spring Stuebner Road, with plans to develop another 300,000 to 350,000 square feet of retail known as Grand Parkway Marketplace II. Portions of this development are ex- pected to open in fall 2017, with the majority opening in 2018. Upon completion, Kimco will con- trol 100 acres at one of the key inter- sections along the entire Grand Park- way Toll Road. n Robert Nadler Kimco Realty Grand Parkway Marketplace is located at the intersection of Grand Parkway and Kuykendahl Road. The 500,000-square-foot power center boasts 170,000 residents within a fve-mile radius, with an average household income of around $110,000. "We felt that the population was underserved and many of the national retailers operating in Greater Houston were not penetrating this exceptional demographic." — Robert Nadler Central Division President, Kimco Realty

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