Stockdale Capital Makes First Austin Acquisition

A North Austin shopping center with a troubled past has changed hands.

Stockdale Capital Partners purchased Arboretum Crossing, a 20-acre, 192,000-square-foot shopping complex at 9333 Research Boulevard, according to a news release.

It is the Los Angeles-based company’s first acquisition in Austin.

The site was formerly owned by real estate tycoon Nate Paul, who filed for bankruptcy on the property in June 2021.

Arboretum Crossing is just south of another massive shopping center, the Domain, and about 15 minutes north of downtown, making it a prime location for investors and continued economic growth. Its tenants include Cost Plus World Market and Sola Salon Studios. It’s the site of a Bed Bath & Beyond store that closed in 2020.

Stockdale has been at the helm of various high-end acquisitions across California, such as its $77 million purchase of the Marker Hotel in San Francisco. The acquisition of Arboretum Crossing inaugurated its second discretionary commingled fund, known as Stockdale Capital Partners Real Estate Opportunities Fund II, which is geared toward transactions across the western United States, outside of California.

“Stockdale Capital Partners is committed to long-term investment in the city of Austin, which is expected to continue to benefit from attractive demographic and economic tailwinds that have supported the region’s growth during the past decade,” Stockdale Capital Partners’ Daniel Michaels stated in the release.

For Nate Paul, Arboretum Crossing is one of his many lost assets in recent years. The World Class Holdings CEO has faced a number of lawsuits, bankruptcies and foreclosures since the 2019 FBI raid of his offices, which hasn’t resulted in criminal charges.

Paul lost 309 East Third Street last year after affiliated company Rising Tide declined to close on its $39 million winning bid. A 13-story office building in the Domain also slipped away earlier this year after it was sold off in a bankruptcy proceeding.