Dhanani Private Equity Group Adds to Portfolio with Second-Largest Retail Acquisition in Company History

Dhanani Private Equity Group’s Leadership Team:  Junior Dhanani, Principal, Retail Assets and Acquisitions; Lucy Singh, Chief Operating Officer; Ali Wadhwani, Chief Financial Officer; Nick Dhanani, Chief Executive Officer; Nikhil Dhanani, President; Faiz Hirani, Principal, Investor Relations and Marketing; and Aaryan Dhanani, Managing Associate. Photos by Kelley Sweet Photography.

Dhanani Private Equity Group (DPEG), a Stafford-based developer making an indelible mark in Fort Bend, has achieved yet another significant milestone in their company’s history with a Sugar Land acquisition.

The privately held company, led by Founder and Chief Executive Officer Nadyrshah “Nick” Dhanani, has made its second-largest retail acquisition in the company’s 14-year history with the purchase of the 379,829-square-foot retail center, First Colony Commons. The Sugar Land property acquisition was completed on September 10, 2024, and is located on approximately 38 acres of land with exposure on Interstate 69 at 15375 Southwest Freeway at Williams Trace Boulevard.

 

Investing in Sugar Land’s Future

Dhanani Private Equity Group’s second-largest retail acquisition in the company’s 14-year history:  Sugar Land’s First Colony Commons. Photo by Kelley Sweet Photography.

The retail center, anchored by Home Depot, is 97% occupied, and DPEG plans to bring in more high-value tenants who are attracted to the Sugar Land market.

“Sugar Land has quickly become one of the most affluent neighborhoods in the Greater Houston area,” said Faiz Hirani, DPEG Principal of Investor Relations and Marketing. “The average household income is high. The diverse demographics combined with a strong real estate market drives demand in attracting high-value tenants.”

Attracting high-value retail tenants lands squarely in DPEG’s wheelhouse as they have experienced with their largest retail acquisition in 2022: The Fountains on the Lake. The Stafford-based retail center, where the company is headquartered, has attracted a multitude of significant retailers.

“A few tenants have tried to make their footprint at The Fountains, but we were unable to accommodate everyone due to limited space,” said Hirani. “Now, with First Colony Commons, a retailer looking at a larger space in the Fort Bend market can have that opportunity in Sugar Land.”

Other than the 50 acres by Smart Financial Center and the 92-acre acquisition of Imperial Sugar Land, there are no larger tracts of land available for developers looking to invest in Fort Bend County. DPEG, who owns these two larger tracts of land, along with The Fountains on the Lake, now adds First Colony Commons to their expanding portfolio.

“We now control the majority of available land in Sugar Land,” said Hirani.  “Real estate in Sugar Land is highly priced but valued appropriately considering the people, spending, tax valuation, and the diverse demographic.  Sugar Land is relatively unmatched across the greater Houston area. You cannot go wrong investing here.”

Growth in Partners

Team DPEG at their corporate headquarters in Stafford. Photo by Kelley Sweet Photography.

DPEG raised $31 million for the acquisition of First Colony Commons, the second largest retail deal for the company.  With the goal of “hand-picking the right deals to make our investors a solid return, all while adding value to the surrounding environment,” the unique DPEG business model is yielding company growth.

DPEG’s 2021 weighted-average annual return was 33%.  Now, the weighted-average annual return is at 47% for 2023.  The company has completed 250+ projects and has seen profitability in each project.  Today, DPEG manages over $1.765 billion in assets under a portfolio consisting of 50+ convenience stories, 80+ retail centers and nearly 3,000 units of proposed Class A+ multifamily.

This track record of profitability has allowed DPEG to grow their internal database of investors to 3,200+ unique partners across 23 US states and two Canadian provinces.

CEO Nick Dhanani’s philosophy on making – and growing – money revolves around full transparency, collective decision-making, and personal investing in DPEG projects without charging a promote, a partnership that he, his team, and family members all participate in.

“Making money is the easy part,” said Dhanani.  “Everyone has to do it in order to survive.  Taking that money and carefully investing it into something that can be enjoyed by both you and your generations to come is a skill, and in my opinion, it is the only skill that I possess.”

Future Aspirations

With the acquisition of First Colony Commons, DPEG plans to achieve the $2 billion mark in acquisitions by the end of 2024.  The company ended the third quarter this year at $1.765 billion.

For more information about Dhanani Private Equity Group and their projects, visit dhananipeg.com or call 1.866.DHANANI (342-6264).