July 26, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces financing for the redevelopment of a former Walmart Supercenter building into Megacenter Willowbrook, a 235,627-square-foot mixed-use project comprising industrial flex, self storage, retail and office space in northwest Houston, Texas
The HFF team worked on behalf of the borrower, Megacenter Willowbrook LLC, to place the three-year, floating-rate loan with Icon Bank. Loan proceeds will be used to fund construction and the conversion of the property into Megacenter’s fifth redevelopment project in the U.S.
Megacenter Willowbrook will be constructed in three phases, with phase one including the 113,940-square-foot gym and 47,319 square feet of flex space in addition to a 6,810-square-foot auto center; phase two consisting of 30,754 square feet of self storage space and 15,101 square feet of office space; and phase three adding 18,439 square feet of self storage space and 10,165 square feet of office space. The project, which broke ground earlier this year, has an expected final completion date of November 2019. Situated on 24 acres at 7075 FM 1960 about 23 miles northwest of downtown Houston, the property is across the street from Willowbrook Mall, a 1.45 million-square-foot regional mall with more than 19 million annual shoppers, an in an affluent area of Houston with 103,630 residents earning an average household income of $89,102 within a three-mile radius.
The HFF debt placement team representing the borrower included director Michael Johnson and real estate analyst Stuart Hepler.
“The Megacenter partners have proven to be market leaders in the adaptive reuse space and are poised for great success at Megacenter Willowbrook with an innovative mixed-use strategy that plays to the strong demographics in the area and creatively reconfigures the existing Walmart structure into a diverse and resilient income stream,” Johnson said.