Southgate Marketplace

SRS Real Estate Partners was engaged by the Ware brothers to market approximately 65 acres at the Southeast Corner of I-35 and FM 1187. The initial plan was to partner with Vista Properties and develop a conventional power center or grocery-anchored shopping center. However, due to a lack of sufficient retail anchor demand for a 250,000-300,000 square-foot power center, SRS pivoted to focus on marketing pad sites along I-35W which eventually led to the development of 9 out of 11 pad sites into multi-tenant retail buildings and single-tenant restaurant units.

Project Overview
Pivoted from original business plan to develop a large grocery-anchored power center. Focused on marketing pad sites along the highway despite the absence of a grocery anchor. Generated enough user interest to complete 9 of 11 pad sites with multi-tenant retail buildings or single-tenant restaurant users while selling the remaining 54 acres to an industrial developer at a value that was a substantial increase to the pricing for retail use.

Key tenants include Chick-fil-A (proposed), Cheddar’s Scratch Kitchen, Sleep Number, Spec’s Wine, Spirits & Finer Foods, Chipotle, Pacific Dental Services, Starbucks, Jersey Mike’s, Black Bear Diner, Texas Health Breeze Urgent Care, Longhorn Steakhouse, Sports Clips, Navy Federal Credit Union, and Club Pilates.

Results
Through marketing and adaptive planning, SRS Real Estate Partners effectively managed the Southgate Marketplace project, ensuring maximized land use and ongoing developmental success.

1. 1. Strategic Pivot and Execution: By shifting focus from a large-scale grocery-anchored center to smaller, more flexible retail and restaurant pad sites, SRS showcased its ability to adapt strategies according to market demand, successfully filling most of the available pad sites.
2. 2. Realizing Land Value: SRS facilitated the sale of the remaining 54 acres to an industrial developer, achieving a sale price significantly above the expected retail pricing.
3. 3. Synergy with Capital Markets Team: SRS introduced its Capital Markets (NNLG) team to the JV Developer, assisting in the sale or pending sale of four completed buildings, with plans to support at least two more.