JV Buys Texas Shopping Centers Totaling 1 MSF
- Feb 26, 2020
With the assistance of JLL, an unidentified investor has sold two Texas malls totaling nearly 1.2 million square feet. A joint venture of Mason Asset Management, Namdar Realty Group and CH Capital Group acquired South Park Mall in San Antonio and Westgate Mall in Amarillo, Texas, for an undisclosed price.
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Located on nearly 49 acres at 2310 S.W. Military Drive, South Park is the only enclosed regional mall in south San Antonio, an area spanning approximately 25 square miles. The 664,000-square-foot, single-story property welcomed its first shoppers in 1968 and underwent its most recent renovation in 2018. Currently, South Park is 95 percent leased, with a tenant roster that includes anchors JCPenney, Dick’s Sporting Goods and Bealls, as well as other national retailers such as Old Navy, Ulta Beauty and The Vitamin Shoppe.
More than 500 miles from South Park, in the northern part of the state, the 94-acre Westgate Mall sits at 7701 West Interstate Highway 40. The retail destination holds the distinction of being the only enclosed mall within a 100-mile radius, allowing for a trade area that encompasses parts of Colorado, Kansas, New Mexico and Oklahoma. The shopping center opened in 1982 and has since undergone a bevy of renovations, the most recent of which took place in 2017. Counting Dillard’s and Bealls as anchors, the property is presently roughly 80 percent leased. On behalf of the new ownership, Namdar is handling management and leasing responsibilities for both South Park and Westgate.
While the mall sector continues to struggle in the face of mushrooming e-commerce sales, it is still alive, particularly in high-growth cities like San Antonio. Net absorption for malls for all U.S. markets turned positive in the third quarter of 2019, reaching 59,000 square feet, per a report by JLL. However, not all malls are on equal footing; demand for lifestyle center space spurred the increase in absorption.
Experts agree; there is a future for the mall. “Many mall landlords have been faced with the question of what to do with an outdated retail format or a vacant department store space. The solution for malls with strong demographics is clear: redevelopment,” according to the JLL report. “Malls are being revitalized with experiential and non-retail elements.”