SAN ANTONIO, TX—Dallas-based Elm Creek Real Estate was already the owner of the shadow-anchor for Woodlake Crossing, a 159,703-square-foot retail power center previously occupied by Target. With its latest acquisition, Elm Creek Real Estate takes full control of the shopping center located at 6212 Woodglen Dr.
Kevin Catalani, first vice president with CBRE in San Antonio, represented the seller, InvenTrust Properties. Despite all that is happening with the economy and health crisis, there is still investor demand in the San Antonio retail market and this transaction is a testament to that, says Catalani.
"San Antonio has strong market fundamentals in terms of population and job growth that make it an attractive retail investment market," Catalani tells GlobeSt.com. "Additionally, San Antonio has historically allowed investors to achieve a better yield than other major markets in Texas. However, that gap continues to narrow. This was a good investment opportunity for Elm Creek. With them owning the former Target box, this investment now allows them full control of the shopping center and eliminates any need for third party approvals on potential leasing. Additionally, it gives them more flexibility in where to place potential tenants."
Austin-based Stream Realty will be marketing the available retail space. Current tenants at Woodlake Crossing include Ross and Petco.
"With full controlling ownership of the shopping center, Elm Creek Real Estate will now have the flexibility to rebrand, and to work with local and national retailers to create a diverse and dynamic retail tenant mix to best serve the local community," said Ryan Ridgeway, senior vice president at Stream Realty.
San Antonio retail occupancy is at 94.7% as of mid-May 2020, down 90 basis points from this time last year, according to a report by NAI Partners. Of the 1.1 million square feet currently under construction, the availability rate stands at 50%. The San Antonio retail market has recorded 786,000 square feet of leasing activity which is comprised of both new leases and renewals, down 47% from one year ago. In addition, the net amount of square feet absorbed (move-ins minus move-outs) stands at 88,000 square feet with new supply delivering 623,000 square feet to the market this year, of which 75% is occupied.
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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.
