Southstar, a development firm based in New Braunfels, has acquired the long-vacant Lone Star Brewery site in San Antonio. The 32-acre property, located at 600 Lone Star Boulevard near Southtown, was purchased from GrayStreet Partners of San Antonio and Midway of Houston.
GrayStreet and Midway bought the brewery site in 2020 for about $14.5 million and proposed a $709 million mixed-use project called the Lone Star District. However, that plan did not move forward due to higher interest rates, increased construction costs, and slower rent growth. The purchase price for Southstar’s acquisition was not disclosed; however, Bexar Central Appraisal District last assessed the property at $18.6 million.
Thad Rutherford, CEO of Southstar, described the acquisition as both a redevelopment opportunity and an effort to preserve local history. “We see this as a chance to honor the site’s iconic smokestack and its deep roots in San Antonio’s working class history,” he said. Company leaders emphasized that future progress will require significant public engagement and collaboration with local agencies.
The brewery site is adjacent to several major public projects already underway or planned for the area. These include VIA Metropolitan Transit’s transit-oriented development initiatives and long-term improvements along the San Antonio River by the San Antonio River Authority. Ongoing downtown development is also expected to influence plans for the brewery property. Southstar stated it aims to coordinate its redevelopment with these efforts and anticipates a large-scale, mixed-use project built over multiple years.
In 2021, city officials approved $24 million in public incentives for redeveloping the site. However, when GrayStreet put the property up for sale, officials clarified that these incentives would not transfer if a new developer took control—a point previously reported by The Real Deal.
Southstar is also pursuing additional land purchases nearby: parcels owned by the Newell family (formerly used as a recycling facility) and CPS Energy properties across Mission Road—including a defunct power plant—could bring their total holdings above 70 acres on both sides of part of the river if deals are finalized.
Kevin Covey, managing partner at GrayStreet Partners, stated last month that his company and Midway would remain financial partners on the project while Southstar takes over planning using existing proposals as reference points. A spokesperson for Southstar confirmed reports that GrayStreet provided seller financing for this transaction.
The original brewery closed in 1996 after decades of operation but has seen at least five unsuccessful redevelopment attempts since then due to environmental challenges, funding issues, and bankruptcies. According to city records, brewing began at this location in 1940 after operations outgrew their earlier facility on West Jones Avenue—the building now home to the San Antonio Museum of Art.
