Billionaire Fertitta Buys $450 Million Mall From JPMorgan

River Oaks District

(Bloomberg) -- Tilman Fertitta bought a luxury open-air mall from JPMorgan Chase & Co. in Houston's wealthiest neighborhood, expanding his real estate holdings in his home city.

Fertitta, owner of Golden Nugget casinos and the National Basketball Association's Houston Rockets, bought the River Oaks District for $450 million, said a person familiar with the matter. The development has more than 300,000 square feet (27,800 square meters) of luxury retail including brands such as Hermes and Cartier, plus over 67,000 square feet of office space and 279 apartment units.

A JPMorgan spokesperson declined to comment.

The deal is Fertitta's second purchase of a luxury real estate property in the last year and a half. He bought California's Montage Laguna Beach resort in late 2022 for a price that according to the Los Angeles Times was $650 million.

In Houston, he also owns the the Post Oak Hotel, a five-star hotel located a mile from the River Oaks complex, and a luxury car dealership offering Bentley and Rolls-Royce vehicles. It's part of a portfolio of assets that gives him a net worth of $11.6 billion, according to the Bloomberg Billionaires Index.

“This is the perfect moment in time to add this premier mixed-use development to our luxury portfolio,” Fertitta said of River Oaks District, citing promotional opportunities and the chance to lift “the standard for luxury dining and shopping.”

The River Oaks District also has an Equinox gym and trendy restaurants including Steak 48 and Le Colonial. US Capital Advisors, a financial services firm, is the main tenant in the complex. The office space is fully leased and the apartments are 90% leased.

River Oaks is a leafy, affluent neighborhood, boasting some of the priciest homes in the city. Fertitta owns a mansion there.

Fertitta, who also owns Landry's Inc. restaurants, is looking to bring another franchise to Houston. He told Bloomberg News in February that he was in talks with the National Hockey League to bring a team to the city's downtown.

(Updates with JPMorgan comment in third paragraph.)

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