SAN ANTONIO—IKEA has completed its acquisition of approximately 30 acres at the southwest quadrant of IH-35 and Loop 1604 in the suburb of Live Oak. Following the closing of the land sale, construction is set to begin in spring 2018 on the IKEA-anchored Live Oak Town Center, a mixed-use project that will total more than 800,000 square feet on 111 acres upon completion. IKEA is slated for completion in spring 2019, and the adjacent retail and mixed-use space is set for first-phase completion later that year.
In addition to the IKEA anchor, which will total approximately 300,000 square feet, Weitzman plans to develop approximately 530,000 square feet of retail, restaurant, entertainment and hospitality space.
Weitzman city partner Michael Schoenbrun is directing development of Live Oak Town Center. David Nicolson, president of the San Antonio office of Weitzman, handles the marketing of the project's lease, sale and build-to-suit options.
“The IKEA at Live Oak Town Center creates a major destination with incredible traffic draw,” Schoenbrun said. “This is the only South Texas location for IKEA, one of the world's most popular and successful retailers. Therefore, we foresee drawing traffic from throughout the region and from Mexico, helping Live Oak Town Center serve a trade area population of more than 13 million people.”
Live Oak Town Center will also benefit from the intersection's strong retail line-up, which includes nearly 20 retail anchors such as Target, Home Depot, Regal Cinemas and Kohl's. Nicolson noted the interest from numerous concepts will enable Weitzman to curate a strong mix to complement the IKEA anchor.
“We're talking to anchor tenants, smaller concepts, restaurants, entertainment and other uses, and we're seeing a lot of excitement about a project of this scope,” Nicolson said.
The first phases of construction involve site and infrastructure work, including development of a public road to be named IKEA RBFCU Parkway, which will go from the Town Center entrance on IH-35 through the project to Loop 1604. The site also will receive 50-foot LED-lit towers within a traffic circle as the centerpiece of the project.
“Weitzman had a booth at the International Council of Shopping Centers New York Deal Making last week. This is a deal-making event with a national scope and a lot of major retailers attended. The IKEA location in San Antonio generated really strong interest, and we had representatives from several leading retailers speak with us at the show,” Schoenbrun tells GlobeSt.com. “Nothing puts you on the map quite like being South Texas' only location for one of the most popular retailers in the world.”
In addition to its anchor, Live Oak Town Center benefits from a location with population density and strong incomes. The high-profile intersection of IH-35 and Loop 1604 exposes the center to hundreds of thousands of vehicles daily.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
