The Northwoods Shopping Center in San Antonio, anchored by grocery chain H-E-B, has changed ownership in what is described as the largest retail property sale in the city since 2021. The 440,000-square-foot center was acquired by a joint venture comprising MCB Real Estate, Epic Real Estate Partners, and Centerbridge Partners. MCB is based in Baltimore, while Epic operates out of Austin and Centerbridge from New York.
Truist Bank financed the acquisition. The shopping center is located at 18140 San Pedro Drive at the intersection of Highway 281 and Loop 1604. Within a three-mile radius, there is a daytime population of about 114,000 people.
Originally developed by Barshop & Oles Company in 1996, Northwoods features tenants such as Nordstrom Rack, Marshall’s, Ulta, and Barnes & Noble. According to the release, Barnes & Noble has experienced renewed success after years of being overshadowed by Amazon. The center currently reports a leasing rate of 91 percent.
MCB Real Estate has expanded its portfolio with several recent acquisitions nationwide. These include Falcon Ridge Shopping Center in Fontana, California; Takoma Park Shopping Center near Washington D.C.; and a former Century 21 store in Brooklyn slated for redevelopment with an investment of $100 million.
Retail real estate has remained strong despite earlier predictions that the sector would decline following the Great Financial Crisis. A limited supply of new retail developments has contributed to higher rents and lower vacancy rates. In San Antonio, average retail rents have increased slightly over the past year—from $19.47 to $19.82 per square foot—while vacancy rates have remained low at between 3.9 and 4 percent during the last year.
The scarcity of available space has allowed San Antonio’s retail market to withstand challenges such as closures of large retailers like Party City and Forever 21. Space vacated by these companies is increasingly being taken up by businesses focused on experiences such as gyms.
