A group of Houston-based investors, led by real estate company Moody Rambin, has acquired Phil Witter’s ownership interest in the 440,000-square-foot shopping center at Towne Center at Cedar Lodge, an upscale lifestyle center at the intersection of Corporate Boulevard and Jefferson Highway.
Terms of the acquisition, which closed late Monday, were not disclosed, but the deal effectively ends the nearly six-year-old lawsuit between Witter, who owned a 50% share of the development, and his partners, Steve Keller and Everett Jackson.
Keller and Jackson will retain their 50% ownership interest in the shopping center and will continue to manage it through their company, Creekstone Properties.
The deal does not affect The Reserve, a condominium development, and The Enclave, an apartment complex, which are also part of Towne Center.
Creekstone Properties declined to comment today, referring questions to Moody Rambin. An attorney for the Houston firm confirmed the deal but declined to comment further, saying a statement will be issued in the coming days.
Towne Center has proven to be one of the market’s most successful shopping centers since its opening in early 2005, with average lease rates of between $25 and $30 per square foot and an average occupancy rate of 95%.
But the partners behind the project have been battling in court since 2010, when Witter, who owned the land on which Towne Center was built, sued Keller and Jackson in 19th Judicial District Court. In his suit, Witter said the partners failed to give him information about the finances of the center or a share of the operational profits. He also accused them of abusing their position as property manager.
Keller and Jackson, in court filings, said the claims were frivolous and untrue.
Moody Rambin is Houston’s largest locally owned, full-service commercial real estate brokerage and property management firm. It also invests in mixed-use properties throughout the region. Â
—Stephanie Riegel
