Sembler and Forge Capital Partners Acquire Kroger-Anchored Eldridge Town Center in Houston

The Sembler Company and Forge Capital Partners have acquired Eldridge Town Center, a 144,000-square-foot Kroger-anchored shopping center located at 6350 N. Eldridge Parkway in northwest Houston, the firms announced Sept. 21. The transaction was executed through Forge Real Estate Partners V, the joint investment fund the two companies operate together.

The center is approximately 96% leased and has served the surrounding community since its construction in 2000. Kroger has anchored the property for 25 years. Additional tenants include Petco, Panera Bread, Chase Bank, Chipotle Mexican Grill, GNC, T-Mobile and Supercuts, with Kohl's operating as a shadow anchor.

Property and Location

Eldridge Town Center sits near the intersection of FM 1960 West and North Eldridge Parkway, with direct access to US-290 and the Sam Houston Tollway. The property is positioned within one of northwest Houston's primary retail corridors, adjacent to a Walmart Supercenter, Target and Home Depot.

The surrounding five-mile trade area includes more than 166,000 residents, an average household income of approximately $107,000 and more than $4.2 billion in consumer spending power.

Strategic Rationale

"Eldridge Town Center is a strong addition to our portfolio, combining an established grocery anchor, a proven tenant mix and a location surrounded by dense residential communities," said Sean Davis, Chief Operating Officer of The Sembler Company. "The center has served this community for more than 25 years, and we see an opportunity to build on that foundation while creating additional value for our tenants, shoppers and investors."

The acquisition reflects Forge Real Estate Partners V's focus on established retail properties in growth markets. FREP V targets the acquisition, development and redevelopment of retail real estate in the southeastern United States. The fund is structured as a community development entity, with investors that include public financial institutions receiving Community Reinvestment Act credit for their participation.

With Eldridge Town Center, Sembler and Forge Capital Partners have now jointly acquired 26 shopping centers across Florida, Georgia, North Carolina, Tennessee, Virginia and Texas. Recent transactions through the same platform include Lone Oak Shopping Center in San Antonio, a 104,485-square-foot center, and Lynnwood Place in Jackson, Tennessee, a 96,613-square-foot property at 941 North Parkway with reported occupancy of 82% at the time of acquisition.

Houston Retail Market Context

The acquisition comes as Houston's retail market maintains relatively tight conditions. Retail vacancy in Houston was reported between 5.5% and 5.8% in 2026, with average asking rents ranging from approximately $21.47 to $21.52 per square foot. Asking rents rose approximately 5.8% year over year through the second quarter.

New supply has remained constrained. Houston delivered approximately 438,000 square feet of retail space in the first quarter of 2026, with development activity declining for a third consecutive period as elevated construction costs and tighter financing conditions limited new projects. Only about 35% of retail space delivered in Houston since 2020 has been multi-tenant product, reinforcing the relative scarcity of established shopping centers in the market.

Absorption has been uneven. The second quarter saw negative net absorption of 478,000 square feet, and availability rose to 6.3%, reflecting softer leasing conditions in parts of the market. Vacancy in north, northwest and southwest Houston shopping centers, however, remained flat or declined during the period, with grocery, fitness and experiential tenants continuing to cluster in high-traffic centers — a profile that aligns with Eldridge Town Center's existing tenant base.

Leasing and Fund Information

Leasing inquiries for Eldridge Town Center can be directed to Serina Morison at serina.morison@sembler.com.