Houston Rockets owner Tilman Fertitta reached deep into his pockets to acquire a high-end mixed-use complex in the Galleria area.
Fertitta paid an estimated $450 million for the 14-acre River Oaks District, at 4444 Westheimer Road, the Houston Chronicle reported, citing sources familiar with the deal.
The seller was an affiliate of JPMorgan Asset Management, which purchased the complex for $550 million in 2016, a year after Oliver McMillan completed the development.
The River Oaks District comprises more than 300,000 square feet of high-end retail space with renowned brands such as Hermes, Cartier and Rolex, alongside upscale eateries and IPIC Theaters. The district is also a stone’s throw from Fertitta’s Post Oak Hotel and his Post Oak Motor Cars, which sells Bentley, Rolls-Royce and Bugatti vehicles.
“This is the perfect moment in time to add this premier mixed-use development to our luxury portfolio, creating incredible cross-promotional opportunities and elevating the standard for luxury dining and shopping for Houstonians and international travelers alike,” Fertitta told the outlet.
The purchase, facilitated by JLL, includes the 279-unit Grey House apartments and 67,000 square feet of fully leased office space, anchored by U.S. Capital Advisors. The retail component of River Oaks District is 90 percent occupied, the outlet said.
Fertitta, who also owns Landry’s and the Golden Nugget casino chain, has made several eye-popping acquisitions in recent years, paying an estimated $1.1 billion on luxury real estate assets since November 2022.
The River Oaks deal coincides with a sluggish period for retail sales amid high interest rates and tougher lending standards. Notably, transactions in this sector have increasingly involved private capital, a trend exemplified by Fertitta’s acquisition.
—Quinn Donoghue
