Dhanani Private Equity Group is returning to its retail roots after diving deeply into the multifamily housing space in recent years.
And it appears committed to working in both sectors.
The Stafford-based company bought the 165,000-square-foot Kingwood Commons retail center earlier this month and shortly thereafter purchased the 30-acre site at the northeast corner of the Grand Parkway and FM 1314 in Porter, Houston business magazine Report. The purchase price for both transactions was not disclosed.
Kingwood Commons is a 17-acre property located at Kingwood Drive and Loop 494, just east of Interstate 69. CBRE brokers Matt Berry, Robbie Kilcrease, Drew Reinking and Jack Carbo represented Dhanani in the off-market trade. The seller is also undisclosed, but the last owner was Indianapolis-based Kite Realty Group Trust, according to the Montgomery Central Appraisal District.
Grocery chain Randalls was the complex’s largest tenant until it closed in early 2020, resulting in a current vacancy rate of 55%.
The deal marks a return to basics for Dhanani. Founded in the 1980s, the company primarily focuses on the retail industry. More recently, though, the company has shifted its focus to multifamily development, with nearly 3,000 apartments under construction.
The company cited attractive price and location as drivers for its purchase of Kingwood Commons.
“The broader strategy is to acquire properties at favorable prices and in prime locations,” Dhanani head Ahsan Daredia told the media. “Right now, whether it’s retail, whether it’s multifamily — anything that comes up on our desks … meets our standards.”
Multifamily is the company’s plan for another recent deal — the acquisition of 30 acres in Porter. Dhanani plans to develop a 342-unit garden-style apartment complex on the land and sell 10 acres of land for commercial development.
The apartment complex, tentatively named Territory at Porter, is still in the design phase and construction is expected to start next year. The property is across the street from a 25-acre property owned by grocery chain HEB since 2018.
— Quinn Donoghue
