By Keith Loria, Contributing Editor
An affiliate of North American Development Group has secured a senior loan for the refinance of Northline Commons, a 472,443-square-foot power center in northern Houston.
Located at 4400 North Freeway, the building was constructed between 2007 and 2009 and consists of one main building, five smaller buildings and four outparcel pads situated on 47.66 acres.
Currently, Northline Commons is 91 percent leased. Tenants include Burlington Coat Factory, Ross Dress for Less, Five Below, Palais Royal, Conn’s, Marshalls and national and regional shop tenants, including GNC, Foot Locker, Image Shots, Baskin Robbins, The Children’s Place and Nails Club. Additionally, the center’s outparcel pads are leased to Pappas Bar-B-Q, IHOP, Ojos Locos Sports and Chick-fil-A.
According to Colliers’ 2015 Q2 market report, 933,719 square feet of Houston’s retail inventory was absorbed last quarter, slightly more than the 837,255 square feet from the previous quarter. Retail leasing activity decreased, reaching 1 million square feet, a decrease of 30 percent from Q1 numbers. The decline in leasing activity was attributed to a lack of available space as Houston only has 5.8 percent vacancy factor.
Houston’s retail market is also benefitting from the continued strength of the Houston metro economy, which despite a slowdown still is seeing an unemployment rate of only 4.2 percent as of mid-year 2015.
Northline Commons is situated in one of the most travelled Houston thoroughfares with approximately 300,000 vehicles per day travelling by. It’s also on Houston’s North Line Light Rail, which is an extension of the Red Line that connects downtown Houston and the Medical Center area.
The HFF debt placement team representing the borrower was led by senior managing director Travis Anderson and associate directors Cory Fowler and Tyler Ford.