PGIM Acquires 400 KSF Houston Mixed-Use Asset

By Alex Ciorogar

LaCenterra at Cinco Ranch in Katy, Texas

PGIM Real Estate—part of Prudential Financial Inc.—has purchased a 412,900-square-foot mixed-use retail center in Katy, Texas, for an undisclosed sum. The property emcompasses 273,522 square feet of Class A retail space and 139,378 square feet of Class A office space. LaCenterra at Cinco Ranch is a 34-acre regional retail center located on the 8,100-acre Cinco Ranch master planned community. According to PGIM, the retail space was 93 percent occupied, while the office space was 89 percent occupied at the time of the sale.

Trader Joe’s anchors the retail space, while the office space comprises a variety of tenants, including engineering, energy and sportswear design companies. Alamo Drafthouse—which will feature an eight-screen theater, in-theater dining services and a 2,000-square-foot bar—will also be anchoring the Houston retail space, which is currently under construction. The project is expected to be completed by 2018.

“We expect that Houston’s strong demographic trends will continue to support the retail market, while Katy’s favorable business climate, top-ranking public schools and proximity to affluent residential communities will continue to attract a diverse employer base to LaCenterra,” said Alfonso Munk, managing director & CIO at Americas at Prudential Real Estate Investors, in prepared remarks.

Executive Director Mark Seedorff at PGIM Real Estate’s South Region Transactions arranged the deal.

Photo via Google Street View