The Jo-Ann Fabrics lease required the landlord to buy the improvements from Conn’s at a discounted price, negotiate a lease with Jo-Ann Fabrics, and to secure long term financing for the newly constituted property.
I-10 / Witte is located in one of the most desirable retail corridors in Houston. The demographics point to high levels of income and education, and excellent traffic counts and freeway visibility.
The project was developed in 2002 and has been a retail success. Land values have risen dramatically in the area making future single level retail projects improbable. Ultimately the land value will warrant a vertical development of either offices or condos. In the meantime, investors enjoy a double-digit return on invested capital as land values continue to increase. The mortgage will be paid in full at the expiration date of the Jo-Ann Fabrics lease at which time a lease extension will be negotiated, or a new lease is signed with another tenant.