Archway Properties will break ground in mid-May on a build-to-suit retail building for Northern Tool + Equipment in Park Air 59, a 111-acre mixed-use development at the eastern edge of Bush Intercontinental Airport in northeast Houston.
Northern Tool's 22,016-sf store will be built on a 1.7-acre, freeway-fronting pad site adjacent to the recently opened Floor & Décor. Archway's new tenant is the fourth retailer to land in the class A development, located at the crossroads of US Hwy. 59 and Will Clayton Parkway in Humble. It will be the Minnesota-based hardware chain's eighth location in Greater Houston.
"As an essential business, Northern Tool is performing exceptionally well in the market, which proves the resiliency of the category," says Austin Alvis, vice president of NewQuest Properties in Houston. He and Preston Cunningham of Cunningham Ventures represented Archway Properties in the build-to-suit lease negotiations.
Archway has selected LaGrone Services Ltd. as the general contractor for its newest build-to-suit project in Park Air 59. Northern Tool's store is expected to open in Q1 2020. Jason Baker and Traci Holman of Baker Katz represented the tenant in the long-term lease negotiations.
"Northern Tool continues a theme of national credit retail tenants at the northern end of our property," says Ben Allen, partner in Houston-based Archway Properties. "The hardware sector's performance during these times is enabling us to move forward despite the market conditions created by COVID-19."
To date, 1.2 million sf of retail, medical, industrial and service-related uses have been built in Park Air 59, which boasts a three-quarter mile stretch of unobstructed freeway frontage. All traffic exiting the airport for FM 1960 passes Archway's development. The combined traffic count is pushing 250,000 vehicles per day on the freeway and its intersecting road, Will Clayton Parkway.
Archway has 18 acres of shovel-ready land remaining in the park. The lion's share is earmarked for medical office projects, including sites for sale to medical users with a preference for owning their real estate.
"Not many sites with this kind of frontage remain on any of the major Houston freeways," Allen says. "With the current situation in the market, medical office is a primary focus."
Park Air 59's first medical user was Vital Heart & Vein, which developed a 65,000-sf three-story medical office building to service a burgeoning trade area that has practically doubled since 2010. Within three miles of the project, there are nearly 45,000 people with an average household income of $61,000 per year. Also close by is a trio of newer single-family developments with 8,500 homes and room for more.
SOUTH TEXAS LEASE
Northern Tool + Equipment has signed a 22,016-sf lease for a build-to-suit project in Park Air 59 at the intersection of US Hwy. 59 and Will Clayton Parkway, Humble. Austin Alvis of NewQuest Properties and Preston Cunningham of Cunningham Ventures represented the landlord, Archway Properties. Jason Baker and Traci Holman of Baker Katz represented the tenant.
SOUTH TEXAS SALE
Jones Hummel Holdings – Firestone Auto has acquired 1.4 acres at 2051 W. Main St., League City, from Virgata One LLC. Jon Jamison and Brett Strake of NewQuest Properties represented the buyer in the direct deal.
NewQuest Properties, founded in 2001, is a privately owned, full-service commercial real estate firm specializing in development, land brokerage, leasing, tenant representation, investment sales and property management services. Headquartered in Houston, NewQuest owns a portfolio encompassing more than 60 retail and mixed-use projects valued at $2.2 billion and provides leasing services for more than 12 million square feet of commercial space in Texas, Louisiana and throughout the U.S.
