4122-4126 Telephone Rd
Houston, TX 77087
Family Dollar Anchored Telephone Rd. Shopping · Retail Property For Sale

Marcus & Millichap is proud to exclusively represent the opportunity to sell an extremely visible, accessible, leasable, and historically dependable 13,875 square foot stabilized Family Anchored multi-tenant retail neighborhood center and small industrial garage building in the nation’s fourth largest metroplex; Houston, Texas. The asset has excellent occupancy history and typically stays 100% occupied. The leases are of the triple-net variety; which therefore allow the landlord to collect on each of the existing leases’ pro rata share of property taxes, property insurance premiums, and Common Area Maintenance (CAM) expenses, including management. The property is situated on 0.80 acres on the intersection of Telephone Road and Pecan Street and lies between major high traffic thoroughfares such as the 610 Loop (610 South) and Interstate 45 (Gulf Freeway) in South Houston. The center Is built straight in-line to Telephone Road, a major north/south traffic artery that dividing the city in half, in a location just north of the Gulfgate Mall, and a few miles north of Hobby International Airport. Aside from its location, the subject property also benefits greatly from its positioning - as the center greatly utilizes its head-in parking area, creating an effect that makes the making the retail feel closer and more accessible to the consumers as it fronts Telephone Road. It The subject property also benefits from its clearly visible signage to both Telephone Road and Pecan Streets that have has been highlighting the names of the property’s tenant mix over the past few decades to Houstonians passing the site; whether it be on their way to work in Houston’s Central Business District to the North, traveling or for business to Hobby International Airport just down south Telephone Road, or driving to/from home: from home going traveling north, and going traveling home even further south to booming residential and mix use neighborhoods/sub markets such as Pearland, which have surpassed many of the inner city of Houston’s population centers. The shopping center additionally supplies its tenant’s employees parking in the back of the building, which is not being enforced by current ownership. This situation in itself uniquely allows for an almost instantaneous value add component to this deal, given that a new landlord enforces the designation of its tenants parking in the back, allowing for more parking spaces up front for consumers. Although Family Dollar, the center’s largest tenant, has elected not to renew their lease this coming January, their upcoming vacancy in January of 2020 will create one of the better value add multi-tenant retail investment opportunities in this aggressive market. Buyers looking for a true value add deal will be pleased, as a tremendous value add opportunity can be created here by a new landlord, for example, by devising the large Family Dollar space, (remove comma) into two or three smaller spaces, (add comma) depending on use and parking allowance. In doing so, rather than collecting what was once an average of $7/SF - $7.75/SF+NNN annually for the old Family Dollar Space, which had commanded over 66% of the property’s use (and income), a new landlord can collect a market average of $16.5/SF - $18/SF + NNN for that same 66% of the center’s gross leasable area. With a growing number service oriented tenant concepts looking for square footage within the Southern Districts of Houston as potential growth markets, as well as existing staple area tenants looking to renew and strengthen their presence in these areas, the districts have been focusing on promoting/stimulating demographic diversification, beautification, increasing in traffic flow; allowing for higher rates of urbanization, and stimulation from outside investment capital from international businesses via nearby Hobby Airport. These aspects are on full display within both the Hobby International Airport District and its neighboring Gulfgate District, and are apparent from just a short drive within these areas.