Two landmark retail properties in Southtown changed hands recently, signaling strong investor interest in the neighborhood south of downtown as the urban core continues its recovery from the economic wallop of the pandemic.
Texas-based 35 South Capital on Dec. 26 purchased King William Center, a property stretching along South St. Mary’s Street between King William and Madison streets, according to Bexar County property records and a news release from the firm. The site is home to popular businesses such as The Station Café and Boozy’s Creamery + Craft ice cream shop.
The half-acre, 10,300 square-foot retail strip marks the first purchase in San Antonio for 35 South Capital, which opened a local office downtown late last year. Founded in 2021, the firm also has offices in Austin and Houston. Notably, the King William Center is across the street from the snazzy new location of Rosario’s ComidaMex & Bar, which opened early last year with 25,000 square feet of space over two stories, including a rooftop bar.
35 South Capital plans to “invest thoughtfully” with renovations of the strip and is working on growing its San Antonio presence, it said in the release. John Amini, its managing director, grew up in San Antonio and recently returned.
“Being at the front door to one of the most beautiful neighborhoods in the state of Texas, King William Center is ideally located and authentically designed,” Amini said in a statement. “With a creative plan, we plan on breathing new life into the project. We like to buy properties that are exceptionally located, with their best days ahead of them. King William Center fits the bill and we’re excited to join the neighborhood.”
In its press release, the firm called Southtown “one of the most dynamic retail districts in San Antonio” and cited its proximity to Hemisfair, La Villita, the River Walk and the historic King William district.
The firm didn’t say how much it paid for the property, which the Bexar Appraisal District assessed at $1.4 million last year. An entity linked to the firm took out a $2.65 million loan from Broadway National Bank to make the purchase, Bexar County property records show.
Also last month, an entity managed by Cody Lockwood, a local real estate broker who owns the Lockwood Capital Group investment firm, purchased the quarter-acre property at 728 S. Presa St. that is home to Southtown Pizzeria, the county records show. The transaction closed on Dec. 15.
Lockwood said in an email that he is still in the “planning stages” and couldn’t yet discuss what he might have planned for the site.
His entity, named Confluence Capital Fund I, also purchased the 0.29-acre property at 2301 San Pedro Ave. in Alta Vista that is home to the Rose Bush food court, records show. The seller of both properties was CAN Industries Inc., a local company led by Charles Acuna.
35 South Capital bought the King William Center from Tacal Properties LLC, managed by local resident Mary Adelle Brewer and others, according to state corporate filings. Tacal had owned it since 2009, county records show. The buildings in the center date from 1935 and 1949, according to the Bexar Appraisal District.
Southtown has drawn interest from other investors recently. About a year ago, Austin-based Ironwood Real Estate bought two major properties in the area, including the 14,800-square-foot Southtown Junction retail strip, developed by GrayStreet Partners and featuring signature businesses such as Pharm Table and Brown Coffee Co.
Ironwood also bought two buildings on South St. Mary’s Street, including a Prohibition-era office building and the retail strip home to the Southtown Vinyl record shop.
This article has been updated to clarify that 35 South Capital has offices in both Austin and Houston.
