San Antonio retail center changes hands to Property Commerce

HOUSTON, Aug. 31, 2023 – JLL Capital Markets announced today that it has closed the sale of Terrell Plaza, a 107,884-square-foot retail center located in San Antonio, Texas.

JLL represented the seller, SITE Centers Corp., and Property Commerce Dividend Fund acquired the asset.

Shadow anchored by Target, Terrel Plaza was built in 1986 and renovated in 2012. The shopping center is 96-percent occupied with an exceptional lineup of national retailers, including Ross Dress for Less, Dollar Tree, Five Below, Popshelf, Sherwin Williams and Sports Clips, as well as a Whataburger and Valero as outparcels. Terrell Plaza is ideally located on Austin Hwy near some of the city’s most affluent neighborhoods, including Alamo Heights, Olmos Park, Terrel Hills and Oak Park – Northwood.

The demographics surrounding Terrell Plaza are outstanding. Within a three-mile radius is a population of approximately 90,128, an average household income of $110,716 and a consumer spending power of almost $10 billion. Nearby economic drivers include The Pearl Brewery and Fort Sam Houston. Additionally, the property is easily accessible to I-410, I-35 and Austin Highway.

The property features a weighted average tenure of 8.7 years and a weighted average remaining lease term of 5.6 years. Terrell Plaza presented the buyer with an opportunity for rent growth as there is very little vacant retail supply in the area.  According to CoStar and JLL Research, the Austin Highway / Broadway corridor is comprised of 1.8 million square feet of retail and is currently 97.2% leased. The corridor has remained strong over the last ten years with the low point for occupancy hit 96.6% in Q1 2021.

The JLL Retail Capital Markets team was led by Senior Managing Directors Ryan West and Chris Gerard, Senior Director John Indelli, Associate Whitney Snell and Analysts Ryan Olive and Clay Anderson.

“Tenant demand has significantly outpaced new supply and availability, retailers are aggressively expanding in the Texas markets,” said West. 

“Consistent with most of our 2023 transactions, we gathered 15 offers with a heavy concentration of bids coming from Texas based investors. While transaction volume has decreased this year, the demand for assets like Terrell Plaza has remained strong, creating an imbalance in the market,” Indelli said.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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