Fully-leased Shops at Cross Creek trades in booming Fulshear submarket

HOUSTON, Nov. 22, 2024 – JLL Capital Markets announced today the successful sale of Shops at Cross Creek, a fully leased 24,188-square-foot retail center located in Fulshear, Texas.

JLL worked on behalf of the seller, Rycore Capital LP. The buyer was Phillips Edison & Company.

Shops at Cross Creek, strategically located at 6630 FM 1463, is situated in one of the fastest-growing submarkets in the Houston metro area across the street from the nation’s leading discount grocery giant-anchored center including Chick-Fil-A, Ulta, Raising Cane’s, Whataburger, TJ Maxx, Ross and several other key national retailers. The center benefits from its position on FM-1463, a key north-south corridor connecting I-10 to FM-1093, in an area experiencing rapid residential growth.

Fulshear, located within the dynamic Katy submarket of West Houston, has undergone rapid expansion in recent years, establishing itself as one of the Houston metropolitan area's fastest developing regions. The area ranks #1 in annual new home starts in the Houston region, with 6,537 starts in 2023 - an 11.2% increase from the previous year. This rapid expansion is driven by the development of numerous master-planned communities, attracting affluent residents with average household incomes of $183,560 within a three-mile radius.

Shops at Cross Creek, a fully leased retail center built in 2015, boasts a diverse mix of both local favorites and nationally recognized tenants. The property is anchored by Yen Fulshear, Rightway Dental, Marvelous Clinic, Firehouse Subs and Avis Budget Car, creating a well-rounded tenant roster that caters to various customer needs.

JLL Capital Market’s Investment and Sales Advisory team representing the seller was led by Senior Managing Director Ryan West, Senior Director John Indelli and Analyst Gianna New.

"The sale of Shops at Cross Creek demonstrates the strong investor appetite for well-located retail assets in high-growth suburban markets," said Indelli. "The center's strategic position in one of Houston's fastest-growing areas, combined with its strong tenant mix and below-market rents, make it an attractive long-term investment."

West added, "This transaction highlights the continued demand for quality retail properties in Houston's expanding suburban corridors. The Katy-Fulshear area's impressive population and housing growth provide a solid foundation for sustained retail performance."

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Rycore Capital is a Houston-based real estate investment manager specializing in acquiring, leasing and managing income-producing properties across various commercial real estate sectors, including office, industrial, retail and medical. The firm offers tailored investment programs and solutions for wealth management and private investors, focusing on delivering consistent value-add, core-plus and core returns. Rycore acts as a sponsor, raising joint-venture equity on a deal-by-deal basis while co-investing in the capital stack and also advises family offices and high net worth investors on existing real assets and direct real estate ownership opportunities.

Phillips Edison & Company, Inc. (“PECO”) is one of the nation’s largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers. Founded in 1991, PECO has generated strong results through its vertically integrated operating platform and national footprint of well-occupied shopping centers. PECO’s centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO’s top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of September 30, 2024, PECO managed 311 shopping centers, including 290 wholly owned centers comprising 32.9 million square feet across 31 states and 21 shopping centers owned in two institutional joint ventures. PECO is focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time.