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PGIM Real Estate acquires mixed-use lifestyle center LaCenterra at Cinco Ranch in Houston suburb
HOUSTON, Nov. 8, 2017 – PGIM Real Estate has acquired LaCenterra at Cinco Ranch, a 412,900-square-foot outdoor mixed-use retail lifestyle center in Katy, Texas, on behalf of institutional investors. PGIM Real Estate is the real estate investment business of PGIM, the $1 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).
LaCenterra is a 34-acre regional retail destination in Katy, a western suburb of Houston, and is part of the 8,100-acre Cinco Ranch master planned community, offering an open-air, pedestrian-friendly environment, with lakes and two half-acre multipurpose public parks.
PGIM Real Estate’s investment includes 273,522 square feet of class-A retail and 139,378 square feet of class-A office. Existing phases of the project include retail and office components that are leased 93 percent and 89 percent, respectively. Trader Joe’s anchors the existing retail, while the office component includes a diverse tenant base including engineering, energy, sportswear design and manufacturing, and flexible workplace companies.
An Alamo Drafthouse, the movie theater/dining hybrid founded in Austin, will anchor the final retail phase currently under construction with completions scheduled for 2018. The Alamo Drafthouse will have an eight-screen theater with in-theater dining services and a 2,000-square-foot adjacent bar and lounge with outdoor seating.
“PGIM Real Estate’s acquisition of LaCenterra adds another high-quality, income-producing asset to our investors’ portfolio,” said Alfonso Munk, Americas chief investment officer at PGIM Real Estate. “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.”
Mark Seedorff, Atlanta-based executive director, South Region Transactions at PGIM Real Estate, led the transaction.
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About PGIM Real Estate
PGIM Real Estate is the real estate investment business of PGIM, the global investment management businesses of Prudential Financial, Inc. (NYSE: PRU). Redefining the real estate investing landscape since 1970, PGIM Real Estate has professionals in 18 cities in the Americas, Europe and Asia Pacific with deep local knowledge and expertise, and gross assets under management of $69.0 billion ($50.5 billion net) as of September 30, 2017. PGIM Real Estate’s tenured team offers to its global client base a broad range of real estate equity, debt and securities investment strategies that span the risk/return spectrum. For more information, visit pgimrealestate.com.
About PGIM
With 14 consecutive years of positive third-party institutional net flows, PGIM, the global asset management businesses of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world with more than $1 trillion in assets under management as of September 30, 2017. PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including fundamental equity, quantitative equity, public fixed income, private fixed income, real estate and commercial mortgages. Its businesses have offices in 16 countries across five continents.
Prudential’s additional businesses offer a variety of products and services, including life insurance, annuities and retirement-related services. For more information about PGIM, please visit pgim.com. For more information about Prudential, please visit news.prudential.com.
© 2017 PGIM is the primary asset management business of Prudential Financial, Inc. (PFI). PGIM Real Estate is PGIM’s real estate investment advisory business and operates through PGIM, Inc., a registered investment advisor. Prudential, PGIM, their respective logos as well as the Rock symbol are service marks of PFI and its related entities, registered in many jurisdictions worldwide. PFI of the United States is not affiliated with Prudential plc, a company headquartered in the United Kingdom. Ref: BDUFF-ASPQV9
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