H-E-B’s 55-year deed restrictions in land sale irk East Side neighbors

A recent H-E-B real estate transaction has aggravated the persistent shortage of grocery stores on San Antonio’s East Side. 

The supermarket chain recently sold a 6.2-acre site off Roland Road and Interstate 10 in the Denver Heights neighborhood, exerting its market dominance with a deed restriction that prevents a supermarket on the land for 55 years, the San Antonio Express-News reported.

San Antonio-based H-E-B purchased the site in 2017, and it was appraised at $1.3 million by the Bexar Appraisal District. An entity of the grocer sold it to Retail Assets LLC, which then sold it to Portland, Oregon-based JB Rental Properties LLC.

While the purchase price was not disclosed, deed records show that JB Rental Properties secured a $1.5 million loan (almost $242,000 per acre) for the acquisition. JB Rental Properties, headed by Jawaid Bashir, is also affiliated with Brake Time Corner Market, a chain of convenience stores, gas stations and car washes. 

According to the deed restriction, only a small convenience store or gas station with limited grocery space can be built on the site. The deed restricts businesses on the site from using over 500 square feet or 5 percent of their space for groceries and household goods. It does however allow for convenience stores up to 10,000 square feet with no more than 10 percent of floor space for groceries. 

H-E-B’s use of restrictive clauses is not new; the company has applied similar limitations to more than 20 properties totaling more than 200 acres in Bexar County. These restrictions, aimed at limiting competition, have been placed on properties in various locations, including East Commerce Street, Potranco and Loop 1604, and Huebner Road in Shavano Park. While Walmart and Target also use deed restrictions, their terms are typically shorter, ranging from 10 to 50 years.

H-E-B only has one store on San Antonio’s East Side, which many residents criticize for its limited product selection and quality. Residents often travel farther for better grocery options, creating inconvenience and accessibility issues, the outlet reported. Local leaders and neighborhood association presidents have voiced their disappointment and frustration over the lack of grocery stores in the area compared to other parts of the city.

“There’s nice H-E-Bs everywhere else, except for the East Side,” said Vanessa Shelton, president of the Dignowity Hills neighborhood association.

Businessman Frank Dunn, who is familiar with the East Side’s challenges, said the lack of grocery stores on the East Side is particularly difficult for seniors who may have trouble getting out of the neighborhood. 

“I mean, if I was H-E-B and I owned that land, I would do the same thing. I’m a businessman, so I totally understand that,” Dunn said. “But that’s still land that’s available.”

— Andrew Terrell

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