A New York-based 1031 Exchange investor has acquired the 93,707-sf Northeast Market Place in a fast-moving off-market transaction, gaining control of a fully leased retail center at a prime infill location inside Houston’s city limits.
Northeast Market Place is the largest retail center, and possibly the only one, in five years to come to market in the Interstate 69/US Hwy. 59 and Little York Road corridor. David Luther, executive vice president of NewQuest Properties’ Investment Sales Division, represented the seller, Rosenbach Nemp LLC.
The just-sold center is located at 10660 Eastex Freeway on a 9.09-acre tract with direct access to the interstate’s feeder road and Little York. Dakota Workman, a senior associate with NewQuest, and broker colleague Thomas Turner represented the buyer, 37Y Properties LLC.
“It’s the best corner in this part of Houston and close to downtown. It’s where all the nationals are located,” Luther says.
The center’s lone vacancy – 21,000 sf – was leased to yet another national brand prior to the trade. A family footwear retailer has signed a 10-year lease for the junior anchor spot, formerly occupied by Office Depot.
“That vacancy was the only one available in this market. It had strong interest from nationals, all more than eager to backfill second-generation space,” Luther says.
The buyer made the close with 1031 Exchange funds and traditional bank financing. “A 40-day escrow is unheard of for a center of this size,” Luther notes.
Northeast Market Place, completed in 2006, is anchored by Ross Dress for Less. The 11-tenant roster features a mix of national and regional brands for fashion, dining and neighborhood services. The project is shadow anchored by Home Depot.
“As soon as the buyer pulled into the center, he fell in love with it,” Workman says. “It’s a core retail asset in a good location with credit tenants.”
Adding to the dynamics, Northeast Market Place’s one-mile trade area has experienced a 46% growth in population since 2020. In a five-mile radius, there are nearly 267,000 residents, with the average household income of $50,000 reflecting the blue-collar nature of an ethnically diverse neighborhood, of which 67.4% are Hispanic Americans.
For several years, Latino buying power has been growing exponentially. It is projected to hit $2.6 trillion by 2025, according to Insider Intelligence, just one of many trackers of the fast-rising demographic.
“The Little York-59 intersection has become the hub for Hispanic commerce in this corridor,”
Luther says. “Well-located power centers that serve ethnic communities experience higher occupancies and rent growth because there’s often a lack of new supply in the area, as is the case with Northeast Market Place.”
NewQuest Properties, founded in 2001, is a privately owned, full-service commercial real estate firm specializing in development, land brokerage, leasing, tenant representation, investment sales and property management services. Headquartered in Houston, NewQuest owns a portfolio encompassing more than 100 retail and mixed-use projects exceeding $2.3 billion in value and provides leasing services for more than 12 million square feet of commercial space in Texas, Louisiana, Arizona, Georgia and throughout the U.S.
