Palm Beach firm buys Texas retail center for $81M
Palm Beach-based investment firm Sterling Organization bought an under-performing shopping center in San Antonio, Texas, for $81 million, or about $127 per square foot.
Brian Kosoy, managing principal, president and CEO of Sterling, told the San Antonio Express-News that his firm invested in the turnaround potential of the 635,000-square-foot Park North shopping center. It is only 73 percent leased, and surrounding retail properties have almost no vacancy, he said.
The retail property is a cluster of 17 building with tenants including Chipotle Mexican Grill, Payless ShoeSource, Twin Peaks and World Market. Anchor spaces are occupied by Alamo Drafthouse Cinema and a Super Target store.
Sterling plans to upgade the parking lots and improve the signage, making it more visible. “There’s no doubt that this piece of property sits at the epicenter that is one of the strongest, if not the strongest, retail nodes in San Antonio,” Kosoy told the San Antonio News-Express. The property would perform “a lot better with some fundamental tweaks to the site.”
Park North, built in 2004, replaced one of San Antonio’s first shopping malls, Central Park, which opened in 1968 and was razed in 2003. [San Antonio News-Express] – Mike Seemuth