JLL Capital Markets announced today that it has arranged acquisition financing for Harper’s Trace Center, a fully leased, 12,928-square-foot retail strip center in the Houston-area community of Conroe.
JLL worked on behalf of the borrower, Austin-based Door Capital Partners, to place the five-year, fixed-rate non-recourse acquisition loan with Woodforest National Bank.
Completed in 2017, Harper’s Trace Village is triple net leased to a diverse, synergistic mix of tenants, including Subway, SuperCuts, Papa John’s, Greenpath Pharmacy, 242 Animal Hospital and Friendly Dentists, along with a popular wireless provider. An adjacent, non-owned Starbucks and O’Reilly Auto Parts help drive traffic to the property, and a Chick-fil-A will be opening next door.
Harper’s Trace Village is positioned on 1.27 acres at 10161 Highway 242 in Conroe, a northern suburb of the Houston MSA. The property is within a popular retail corridor and surrounded by residential neighborhoods that house nearly 85,000 residents earning an average annual household income of $108,968. Additionally, the property is across the street from a new 102,000-square-foot H-E-B grocery store.
According to JLL Research’s United States Retail Outlook Q1 2022 report, smaller-sized retailers are currently driving demand for neighborhood and strip centers. Vacancy compressed 110 basis points year-over-year ending the first quarter of 2022 to 6.0%. Rents rose 1.4% during the quarter and 4.6% over the previous year.
The JLL Capital Markets Debt and Advisory team representing the borrower was led by Senior Director CW Sheehan, Managing Director Michael Johnson and Analysts Hunt Wood and Matt Ctvrtlik.