H-E-B, the San Antonio-based grocery chain, has acquired a large office campus as part of its plan to open its first Dallas store. The company purchased Commerce Plaza Hillcrest, a three-building office property located at 12800-12890 Hillcrest Road. The property covers nearly 10 acres and was valued at $16.8 million in 2025.
This acquisition is notable as one of the major office property purchases in the region this year. H-E-B’s Chairman Charles Butt led the effort, but the main challenge came after the purchase—securing zoning approval amid local opposition concerned about traffic and flooding.
Homeowner groups voiced their concerns that the new store would be “out of character” with the area. However, H-E-B received zoning approval last week for a planned 127,000-square-foot store at Hillcrest Road and LBJ Freeway. The store is expected to open in 2028.
The land previously belonged to Silver Star Properties, formerly run by Gerald Haddock. Silver Star Properties has been selling off its portfolio of Class B office properties during an ongoing restructuring process following financial difficulties and leadership changes.
Silver Star defaulted on a $259 million CMBS loan from Goldman Sachs in October 2023. That same year, former CEO Allen Hartman was removed from his position after accusations of nepotism and mismanagement, which he denies. Efforts to pivot Silver Star’s focus from office properties to self-storage have faced challenges; a subsidiary filed for bankruptcy in 2023, and some properties faced foreclosure related to a $57.8 million loan from Benefit Street Partners.
Meanwhile, H-E-B has continued expanding into Dallas-Fort Worth’s northern suburbs throughout this year by purchasing land for additional stores, including a recent acquisition in Sherman at FM 1417 and U.S. Route 75.
“Homeowner groups rallied against the project, calling the store ‘out of character’ with the area,” according to local reports.
H-E-B prevailed in obtaining zoning permission despite community concerns and plans to proceed with development on its newly acquired site.
