GrayStreet Partners, the developer behind a forthcoming 20-story tower near the Pearl and other major downtown projects, has purchased a corner property near City Hall once slated for a new apartment building.
GrayStreet recently bought the 1.67-acre Kallison Square property at the corner of Flores and Dolorosa streets where the previous owner, Austin developer Teeple Partners, canceled plans to build twin apartment towers.
The new owner does not have immediate plans for the site, GrayStreet spokeswoman Tomoko Iimura Alavi said in an email. “We are still in the stage of exploring different options,” she added.
Teeple was awarded an incentive package for the apartment and retail project in August 2017. The deal included a $5.9 million tax reimbursement, $1.1 million in fee waivers, and a $1 million development loan that could be forgiven if the developer met certain conditions, according to the agreement. But in March, Teeple withdrew its request for the Center City Housing Incentive Policy (CCHIP) agreement worth $8 million after determining the Kallison Square tower project was not financially feasible.
Veronica Garcia, interim assistant director at the Center City Development and Operations department, said at the time that the Kallison Square site is a key location.
The two-acre property sits across from City Hall and also from Bexar County’s Cadena Reeves Justice Center, and gets its name from the buildings that were once occupied by Kallison’s Western Wear. The City Hall structure is currently undergoing renovations that are expected to be complete in February 2020.
Just north of City Hall, along South Flores and Commerce streets, Weston Urban recently purchased a 103-year-old building with plans to turn 10,000 square feet on the second floor into what it calls creative office space.
Adjacent to the Kallison Square property is San Pedro Creek, which is undergoing a $175 million rehabilitation, and several blocks west lies the downtown campus of the University of Texas at San Antonio, which recently announced plans to expand its footprint east into downtown proper.
Current occupants of the busy corner property include the 777 Food Mart, Tommy’s Restaurant, The Roosevelt Buffet, and Candy’s Old Fashion burger restaurant.
