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3401-3567 Palmer HwyTexas City, TX 77590
Texas City Bay
Asset ClassRetail
Square Feet224,884
overview of deal

Overview

Cushman & Wakefield’s Retail Investment Advisors are pleased to present the exclusive offering of Texas City Bay (the “Property”), a 224,884-square-foot, grocery anchored community center located in the rapidly growing Texas City submarket within the Houston MSA.

 

Currently 91.6% leased, Texas City Bay is anchored by a high-performing Kroger with a healthy 2.1% occupancy cost ratio. The center also features a strong co-anchor lineup, including a newly signed Burlington, Harbor Freight, and Planet Fitness. These national tenants represent 66% of the GLA and 55% of total revenue.

 

There is a compelling value-add opportunity through the lease-up of 18,954 SF across six small shop vacancies and the ability to mark-to-market over 35,000 SF of under market small shop leases, currently ~27% below market rent.

 

Seller also selling Spencer Square. See additional listing here.

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Investment Highlights

Seasoned and High Performing National Grocer Anchored Community Center:

  • Kroger with 2.1% occupancy cost ratio, over 50 years of tenure
  • 224,884 square feet of gross leasable area on 17.9 acres

High Quality Tenant Mix:

  • Anchored by top-tier national retailers Kroger, Burlington, Harbor Freight, Five Below, and Planet Fitness
  • Diverse mix of popular small shop tenants - Smoothie King, AT&T, Wingstop, Taco Bell, Sport Clips, and Take 5

Upside Potential:

  • Significant value-add opportunity through the lease-up of 18,954 SF (8% of GLA) of vacancy from six small shop suites
  • Mark-to-market 35,000 sf of leased small shop space, currently estimated to be ~27% below market rates

Stable Cash Flow with Healthy Growth:

  • National tenants occupy 83% of the gross leasable area (GLA) and generate 85% of total revenue
  • Anchors and junior anchors account for 66% of the GLA and contribute 55% of total revenue
  • Projected to deliver a 10-year compound annual growth rate (CAGR) of 4.33%

Strong Consumer Traffic:

  • 2.3 million visitors per year to the center. (placer.ai)

Premier Location:

  • Texas City’s Busiest Intersection – “Main & Main”
  • Located on Southeast corner of State Highway (SH) 146 (26,802 VPD) and Palmer Highway (28,309 VPD) – the major North/South & East/West, respectively, transportation arteries
  • High Traffic Intersection with over 55,000 vehicles per day
  • Going home side of the road

Expansive Trade Area:

  • Due to confluence of strong economic drivers, transportation and population corridors. Home to third largest concentration of crude-based refining in United States. Major Employers include: Marathon (2000), Texas City ISD (1300), HCA Healthcare (850), Valero (480), Dow Chemical (330) and Amoco (279) to note a few
  • Over 84,000 People with an Average Household Income of $96,000 and a projected 2030 population of over 99,000.
  • Dominant and Regional Intersection has attracted a best-in-class national big-box retailers line up with Lowes Home Improvement, Kroger, Burlington and Ross, all of which do not have another location within a 10 mile radius

High Growth Submarket (Texas City):

  • The city has seen significant population growth, fueled by strong job creation and an exceptional quality of life
  • Population has steadily increased from approximately 51,900 in 2020 to an estimated 59,490 in 2025, representing a 13.8% gain and an average annual growth rate of ~2.48%
  • Texas City has recorded more than 11,000 residential inspections in the last 12 months.
  • There are currently 23 active housing developments, delivering ~6,000 new units to meet growing demand and fill a regional housing void

Institutionally Maintained and Managed:

  • Updated facades and signage
  • Clean and well lighted parking lot
deal gallery image
deal gallery image
deal gallery image
3401-3567 Palmer HwyTexas City, TX 77590
Anchors: Kroger, Burlington, Harbor Freight, Planet Fitness
Outparcels: Taco Bell, Take 5 Oil Change

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Listing provided by Revere CRE