Local investor nabs suburban shopping center amid high retail demand

SLS Properties has added a high-occupancy shopping center to its growing retail real estate holdings in southeast Texas. 

The Houston-based developer, headed by founder Danny Sheena, acquired the 21-acre Baybrook Passage shopping complex in Webster, the Houston Business Journal reported. The price wasn’t disclosed.

CBRE brokers Chris Cozby, Jolie Duhon, Jim Batjer, Harrison Tye and Mark Witcher represented the seller, Gulf Coast Commercial Group.  

The property, at the Northeast Corner of Interstate 45 and Bay Area Boulevard, is located across from Baybrook Mall, one of the area’s top shopping destinations. 

Baybrook Passage is anchored by major retailers such as Best Buy and Staples and features a mix of tenants, including Torchy’s Tacos, Pei Wei Asian Kitchen, and DXL. With 97 percent of its space leased, it attracts over 30 million visitors a year and enjoys high visibility, with 210,000 vehicles passing by daily.

This was Sheena’s second attempt at buying property, but he was outbid in 2021 by Coventry Development.

The acquisition adds to SLS Properties’ strong presence in the Galveston Bay area, which now includes five retail properties. In addition to Baybrook Passage, SLS Properties owns a Baybrook Mall pad site that houses Men’s Wearhouse and Verizon. 

SLS plans some improvements to the property, including the development of a 10,000-square-foot retail building between Mia’s Table and Potbelly, filling the space once occupied by a TGI Friday’s. Construction is scheduled to begin next month.

Its plans also include creating a more walkable environment by adding sidewalks between buildings. Sheena also has plans to introduce space-themed sculptures throughout the center.

— Andrew Terrell

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