Sterling Sells San Antonio Shopping Center for $115M

December 15, 2025

Investment News Retail San Antonio More Southwest

Target anchors the multi-building property.

Sterling Organization has sold Park North Shopping Center, a 635,000-square-foot retail property in San Antonio, Texas, for $115 million. Dhanani Private Equity Group was the buyer, according to Yardi Matrix data.

Park North Shopping Center, a 635,000 square foot retail property located at 842 Northwest Loop 410 in San Antonio — Park North Shopping Center, a 635,000-square-foot retail property located at 842 Northwest Loop 410 in San Antonio. *Image courtesy of Sterling Organization*

Sterling Organization had originally acquired the property for $81 million in September 2016, on behalf of its institutional value-add fund, Sterling Value Add Partners II (SVAP II). Adjusted for inflation, that amount would be the equivalent of about $109 million currently.

Park North Shopping Center is at 842 Northwest Loop 410 and is anchored by a Target store on a ground lease. Other national, regional and local tenants include Pinstack, Alamo Drafthouse Cinema, Norris Conference Centers, World Market, Outlaw Pickleball, Dollar Tree, Chipotle and First Watch.

The center was completed in 1988 on a 44.4-acre site, according to information provided by Yardi Matrix.

In a prepared statement, Sterling Principal Bob Dake noted that the REIT has boosted the property’s occupancy from 73 percent to 93 percent over the period that it has owned and managed the center. He attributed the center’s success in part to its multiple entertainment-focused tenants.

The company also pointed out that Park North boasts about 7.1 million annual visitors and reportedly is among the most-trafficked shopping centers in the San Antonio MSA.

A JLL team led by Chris Gerard, senior managing director & retail group leader, and Barry Brown, senior managing director, capital markets, represented Sterling in the sale.

Alamo City holding its own

Notwithstanding higher vacancy and deliveries, lower rents and decreased leasing activity, the retail sector in San Antonio retains positive fundamentals, according to a third-quarter report from Partners Real Estate. Though down a bit, third-quarter leasing was close to the recent average, while net absorption increased slightly.

“The vacancy rate rose 20 basis points quarterly and 30 basis points annually to 4.3 percent. Low vacancy reinforces the landlord-favorable dynamics in the market,” Partners reported.

In August, Sterling Organization subsidiary Sterling Logistics Properties acquired a 127,380-square-foot former Walmart store at 40580 Albrae St. in Fremont, Calif., for $32.6 million. The acquisition was made on behalf of Sterling Consumer Logistics Properties I LP, a $225 million equity fund. The buyer indicated that it might redevelop the property into warehouse space, for either advanced manufacturing or logistics tenants.