Center Gets Jolt from Expansion of Foster Road

SAN ANTONIO, TX—The pending expansion of Foster Road to four lanes will further enhance an industrial site’s access to IH10, IH35, IH410 and SH130, providing service to markets throughout Texas including San Antonio, Austin, Houston and Laredo. Foster Ridge Distribution Center is a 327,000 square-foot cross-dock industrial facility to be located near the intersection of Foster Road and IH10 E.

Koontz Corporation’s newest development broke ground this week and is the latest development in the burgeoning industrial submarket on San Antonio’s Northeast side. The 21-acre site is located just 1.2 miles north of the 871-acre site acquired by H-E-B last October and about a half mile from the new Dollar General Distribution Center. Completion is expected in the first quarter of 2019.

“San Antonio’s growing population combined with the rapid expansion of e-commerce businesses has created a significant demand for state-of-the-art distribution facilities like Foster Ridge,” said Bart Koontz, president and CEO of Koontz Corporation. “With its strategic location, superior access and modern design features, we feel Foster Ridge will present an attractive option for larger tenants looking to expand in our marketplace.”

The concrete tilt wall project will feature 32-foot clear heights with speed bays and optimized column spacing along with the latest ESFR fire safety system. With 75 dock-high overhead doors, four ramps, ample trailer storage and 130-foot truck courts on either side of the building, Foster Ridge is designed to accommodate a single large user or multiple smaller tenants.

The development team led by Koontz includes architect Powers Brown of Houston along with civil engineers Pape Dawson and general contractor RC Page, both of San Antonio. Cavender and Hill has been selected to lead the project’s leasing. Project financing was arranged by Holiday Fenoglio Fowler, in combination with Voya Financial Inc. and Dallas-based Catlyn Capital Corporation.

Headquartered in San Antonio, Koontz Corporation specializes in the development and construction of residential and commercial properties throughout the state. In this exclusive, Troves Gilbert, chief financial officer, Koontz Corporation, discussed the project, its significance and overall growth in the market.

GlobeSt.com: What is the significance of this new development to Koontz Corp and the location? Is this the first distribution center you have developed in this submarket?

Gilbert: As a regional developer, Koontz Corp. has chosen product diversity over geographic range. We have in-depth development experience in all major product types including multifamily, office and industrial, almost all of which has been located in San Antonio, Austin or Houston. We prefer to develop in familiar markets where we have a better understanding of supply and demand. This approach has served us well and made us very nimble in responding to identified market opportunities. As for the Foster Ridge project, this will be our first large cross-dock development in the San Antonio market.

GlobeSt.com: Can you provide further insight into the growth of Northeast San Antonio and the industrial submarket and your decision to develop a distribution center here, aside from its proximity to all major thoroughfares?

Gilbert: For the last decade, Austin and San Antonio have outpaced almost all other metro areas in the country in terms of population and job growth. With our pro-business environment and low cost of living, most expect this trend to continue well into the future. We believe this continued growth will fuel an increasing demand for distribution space. Given that much of the industrial property immediately northeast of San Antonio along IH35 is already built out to the point that congestion is becoming an issue, we believe that our IH10 location will provide a great option for tenants. The site’s proximity to HEB’s new industrial site also bodes well for future demand within the submarket. In addition, for distribution tenants with a more regional focus, the Foster Ridge site will provide an attractive rental rate advantage over similar properties in the Austin market.