600,000 SF Retail Center Coming to Conroe

Teas Crossing

Once built, Teas Crossing will encompass 58 acres and more than 600,000 square feet of shopping space at Interstate 45 and FM 3083. One half-million square feet of the retail space will be located at the northwest corner of the intersection, with the remaining 100,000 square feet to be built on a 9-acre site just north of Conroe Marketplace.

While Read King of Houston will oversee construction and leasing of the $82 million project, the Conroe firm of Angel McIver Interests LP - the original landowner - was responsible for establishing the joint venture, said Jeff Read, company co-principle.

"We've had a relationship with them (Angel McIver) for several years," he said. "This is our first joint venture with them. I anticipate we'll be working with them on several projects after this, including a couple in Montgomery County."

Read King developed the Research Plaza shopping center in The Woodlands, but Teas Crossing will be the largest multi-tenant retail development in the company's 15-year history, Read said. With the presence of the Conroe Marketplace, which opened earlier this year, the I-45 and FM 3083 location will feature more than one million square feet of retail space, rivaling the amount of retail square footage in The Woodlands Mall.

"It will become one of the most powerful regional intersections in Montgomery County," Read said. "We're looking forward to working with the Conroe community and developing a quality project that is indicative of the Conroe market."

Although Read King has not submitted its development plans with the city of Conroe or has yet to sign a lease agreement with any retailers, Jeff Read anticipates tenants will start to occupy the center sometime during the first quarter of 2008. He said the company is in negotiations with Dallas-based JC Penney to anchor the development by moving into a 103,500 square foot building.

"We hope to have an agreement very soon," he said.
Read said Angel McIver initially offered his company to participate in the Conroe Marketplace project in 2004. But Read King passed on the joint venture that eventually involved Gulf Coast Commercial of Houston.

Read King got a second chance with Teas Crossing, "and that's when we pounced on it," Read said.

"We had evaluated the market for some time, but we thought there wasn't enough retail demand," he said. "What Gulf Coast did with Conroe Marketplace convinced us Conroe and the areas north, west and east of the city are viable retail areas."
Michael McIver said Read King's decision to pass on the first project did not disqualify the company for getting another opportunity.

"We watched them and liked the way they work," McIver said. "We do not like to make hasty moves. We wanted to get the (Conroe) Marketplace up and we wanted to see the response of retail tenants."

That response, McIver said, has been "considerably better" than anticipated.
"We understand Ross (a Marketplace tenant) broke sales records," he said. "The advent of connecting FM 3083 across I-45 to (Texas) 105 has completely revamped that corridor. That lends itself to a better traffic situation."

McIver said Bleyl and Associates will serve as the project engineer, while Randy Roan Construction has been hired to complete the initial landing clearing.
"We told Read King to use local people for obvious reasons," Iver said. "As fine as the people are in Houston, you've got good, experienced companies in the Conroe area."
In addition to Teas Crossing, McIver said his company will continue to develop the 152 acres it owns between I-45 and North Frazier and south of FM 3083. Plans could include more retail, some medical and some high-end multi-family development, he said.
Conroe City Administrator Jerry McGuire termed the Teas Crossing project as "outstanding" and added that it "validates the growth trend" in Conroe, particularly on the city's north side. Montgomery County Judge Alan B. Sadler said the construction of one million square feet of retail space essentially creates a shift in which "central Conroe" moves to the FM 3083/I-45 intersection.
"I think it's one of the most exciting projects to ever hit Conroe," he said.
Howard Roden can be reached at hroden@hcnonline.com.