A major retail property in North San Antonio has changed ownership, marking one of the largest shopping center transactions in the region this year. Sterling Organization, based in West Palm Beach, Florida, sold the Park North Shopping Center for $115 million to Dhanani Private Equity Group from Houston. This purchase is Dhanani’s first acquisition in San Antonio.
The Park North Shopping Center covers 45.6 acres at 842 Northwest Loop 410 and spans 635,000 square feet. It is anchored by a Super Target store. The transaction did not include the nearby Aloft hotel on Blanco Road or the former Sears building on San Pedro Avenue, which remains closed. Sterling acquired the shopping center in 2016 for $81 million and achieved a significant return with this sale after nearly ten years.
Originally built in 2004 on the site of the former Central Park Mall, Park North was developed as an entertainment-focused retail center following the decline and demolition of its predecessor mall. PGIM Real Estate and local investor Mark Granados redeveloped it into a 24-hour destination emphasizing dining and entertainment options.
Today, Park North hosts a range of national, regional, and local tenants such as Pinstack, Alamo Drafthouse Cinema, Norris Conference Centers, World Market, and Outlaw Pickleball. The center attracts about 7.1 million visitors annually.
Sterling Organization stated: “We boosted occupancy at the property from 73 percent to 93 percent during our ownership period.” This increase occurred even through challenging periods for entertainment-heavy retail operations during the pandemic.
Sterling continues to own other properties in San Antonio including Thousand Oaks Shopping Center and Village at Stone Oak. In 2017, it sold Grandview Shopping Center for $21.9 million.
Dhanani’s entry comes amid a strong retail market in San Antonio. According to Weitzman’s mid-year report (https://www.weitzmangroup.com/news/market-report-san-antonio-retail-occupancy-remains-at-record-levels), retail occupancy rates are near record highs at approximately 95.2 percent due to steady tenant demand and limited new construction supply. The city has maintained occupancy above 90 percent for fifteen consecutive years.
