Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in two freestanding retail buildings located on an outparcel to Deerbrook Mall, a super regional mall located outside Houston in Humble, TX. This multi-tenant retail property is 100% occupied by three tenants: Jared The Galleria of Jewelry, Chipotle and Tutti Frutti Frozen Yogurt. Positioned in a single tenant building, Jared has occupied this location since 2004 and, after exercising their first renewal option, now only has one option remaining. According to Placer.AI, this Jared location ranks in the top 25 percent of Jared locations nationally.
Chipotle and Tutti Frutti occupy the adjacent two-tenant building; both tenants have ~3 years of lease term remaining and no additional renewal options at their disposal. Further, both Chipotle and Tutti Frutti are paying drastically under market rents of $30 and $37 per square foot, respectively. The key to this opportunity lies in one’s ability to either raise their rents to market, once their leases roll, or to redevelop their two-tenant building into a freestanding single-tenant building and thus drive an even greater premium on the rentable square footage.
Jared’s lease is absolute net in nature, with zero landlord responsibilities for operating expenses or building replacements. Chipotle and Tutti Frutti operate under NNN leases and reimburse for their pro-rata share of taxes, CAM, insurance and management fees.
Deerbrook Mall is anchored by a high-traffic Macy’s and Dick’s Sporting Goods. Over 1.3 million people visited the mall within the last 12 months, with an average frequency of roughly four visits per visitor (Placer.AI). With visibility from both Interstate 69 (125,600+ vehicles per day), as well as FM 1960 (48,400+ vehicles per day), this is the kind of retail site that is irreplaceable, optimally situated to benefit from its proximity to established traffic drivers and surging area demographics.
- Irreplaceable Retail Real Estate Located on an Outparcel to Deerbrook Mall in the Houston MSA
- Visible From Both Interstate 69 and FM 1960, With Combined Traffic Counts of Over 174,000 Vehicles per Day
- 100 Percent Occupied by Three Outstanding Tenants: Jared Jewelry (220+ Locations), Chipotle (3,380+ Locations) and Tutti Frutti Frozen Yogurt (70+ locations)
- This Jared Location Has Been in Business for 20+ Years and Is Ranked in the Top 25 Percent for Annual Visits Nationally Out of All Jared Locations (Placer.AI)
- Both Chipotle and Tutti Frutti Are Paying Significantly Under Market Rent, With Only 3 Years of Lease Term and No Renewal Options Remaining
- Low Retail Vacancy Rates Within the Submarket, Particularly for Sites as Strong as This One
- Located Roughly 11 Minutes From Houston’s Primary Airport – George Bush Intercontinental
- The Houston MSA Has Experienced Rapid Population Growth Over the Last 15 Years, With a Diversified Economic Base and Affordable Quality of Life
