Austin-based Whole Foods Market will anchor two new Texas mixed-use developments from Trademark Property Company, according to a Oct. 5 release from the Fort Worth-based investor, developer and operator.
The stores are among four development and redevelopment deals valued at $417 million that Trademark closed over a six-week span this summer, it said.
In Southlake, Trademark secured financing with equity from Harrison Street Asset Management and started construction on Shivers Farm, a 40-acre, Whole Foods-anchored mixed-use community with 111,000 square feet of retail and a 38,000-square-foot boutique office building.
In Cypress, outside Houston, Trademark and equity partner MetLife Investment Management secured debt financing from PNC Bank for Dunham Pointe, a 202,000-square-foot Whole Foods-anchored retail and restaurant district on 25 acres. Construction has begun, and more than 60 percent of the space has been pre-leased.
Grocery-anchored centers in favor
The deals reflect current investor interest: Trademark cited JLL’s June U.S. retail report, in which investors selected Whole Foods as their top anchor choice, and 81 percent said they include grocery-anchored centers in their investment thesis.
“Capital is back, retail vacancy is at the tightest level I’ve seen in decades, and some ground-up projects are breaking ground again,” said Terry Montesi, founder and CEO of Trademark. “After the longest drought I’ve seen in this business, we believe this is the start of a new retail cycle.”
National retail vacancy held at 4.4 percent in the second quarter, well below the 7.4 percent historical average, according to JLL, with Dallas, Houston and Austin — home to all four Texas closings — accounting for 21 percent of the national construction pipeline.
Trademark’s other summer closings include Anthem, a $135 million-plus redevelopment of the former Lincoln Square shopping center in Arlington, and the acquisition of Oak Hill Plaza, a 116,000-square-foot neighborhood center in Austin.
The company also plans to break ground next year on Shawnee Trail, a Walmart-anchored mixed-use development in Celina, Texas.
Outside the Lone Star State, the company took over management of the 138-acre Atlantic Station mixed-use district in Atlanta.
Trademark said it has invested in, developed or redeveloped 24 million square feet of assets worth $5 billion over three decades and currently operates a 19-property retail and mixed-use portfolio totaling more than 10 million square feet.
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