Katy Lifestyle Center Changes Hands
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LaCenterra, a 34-acre, 412K SF mixed-use lifestyle center in Katy has been sold to PGIM Real Estate, part of Prudential Financial. Vista Equities and its equity partner Amstar Group sold the asset after more than 10 years of development. Early next year, LaCenterra will complete its final stage of development with a 37K SF Alamo Drafthouse Cinema, 7,500 SF of additional retail space and a five-story parking garage.
For now, LaCenterra includes 273K SF of retail anchored by a Trader Joe's and 139K SF of office space with a mix of companies. The completed retail and office portions are 93% and 89% leased, respectively, according to Prudential’s press release.
The deal does not include Martin Fein Interest's 271 residential units at The Grand at LaCenterra.
PGIM likes the long-term prospects of growth in Katy. Over the past decade, the Katy area has had an annual population growth rate between 4% and 6%. The population within the Katy area is expected to continue growing and reach well over 350,000 by the year 2020.
"We expect that Houston’s strong demographic trends will continue to support the retail market, while Katy’s favorable business climate, top-ranking public schools and proximity to affluent residential communities will continue to attract a diverse employer base to LaCenterra,” PGIM Real Estate Chief Information Officer Alfonso Munk said in the release.