Headwall Investments Propels Fund II with Transformative Acquisition, Doubling Footprint in San Antonio and Expanding Market Share in Fragmented Unanchored Convenience Retail Sector

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Mar 21, 2024, 18:00 ET

SAN ANTONIO, March 21, 2024 /PRNewswire/ -- Headwall Investments, a Texas-based commercial real estate development and investment firm, announced today it finalized a pivotal acquisition, The Colonnade Retail Center in San Antonio, TX, to inaugurate its Shopping Center Fund II portfolio and significantly advance toward the target fundraising goal of $100 million. This acquisition was completed in joint venture with SageView Partners. It serves as a major catalyst for expansion of Headwall's specialized platform, targeting unanchored convenience retail centers in major Texas metro markets. This strategic move commences as they continue to pursue their fundraising goals, which remain ongoing until they achieve their stated target. Headwall plans to deploy this capital throughout the remainder of this year and into 2025-26, capitalizing on the distinct growth opportunities within this dynamic sector and adding scale in a fragmented ownership market.

The Colonnade Retail Center, San Antonio, TX

Major Tenants Include:

Firehouse Subs
Great Clips
The Honey Baked Ham Co.
First Watch
PJ's Coffee of New Orleans

The Colonnade Retail Center is comprised of four unanchored retail shopping centers, spanning 126,549 square feet of gross leasable area and 5.41 acres of land. The asset is located at 9801, 9895, 9951, and 9999 IH-10 W San Antonio, TX 78230, and enjoys the advantages of convenient access points, exceptional visibility, and ample dedicated parking. Moreover, The Colonnade boasts close proximity to major employment hubs such as the San Antonio Medical Center and USAA's corporate campus. It also capitalizes on a sub-market characterized by above-average household income and a burgeoning suburban population.

Headwall has made substantial strides in fundraising and deployment for its Fund II portfolio and is poised to accelerate its acquisition strategy to broaden its ownership of unanchored convenience retail properties across key Texas markets. The dynamic Texas Triangle, encompassing Austin-San Antonio, Dallas-Fort Worth, and Houston, TX, has witnessed remarkable growth in recent years, fueling increased demand for shopping centers to cater to the expanding resident population. This demand is further intensified by a notable scarcity of new properties in the unanchored convenience sector, underscoring the strategic significance of Headwall's acquisition efforts of existing assets.

"The last three years have heavily validated our original thesis when launching our Shopping Center Fund I platform in 2020, that well-located, easily accessible convenience retail assets would be well positioned to benefit from rental rate increases as population growth in our target markets expanded and new supply in the 'strip center' sector essentially grinded to a halt," said George J. Wommack, Founder, President & CEO at Headwall Investments. "We are thrilled to launch our Shopping Center Fund II with such a well-known asset in our hometown. Our team looks forward to expanding our thesis to other Texas MSAs over the coming months and would like to express our gratitude to our partners who have helped make this a reality."

ABOUT HEADWALL
Headwall Investments, LLC is a San Antonio based real estate investment and development firm. The company was founded in 2019 by George J. Wommack and focuses on acquiring, developing and redeveloping commercial real estate in Texas. For more information on Headwall please visit https://headwallinvestments.com or call 210-343-2186.

ABOUT SAGEVIEW PARTNERS

SageView Partners, LLC, a San Antonio based real estate investment and development firm, sourced the subject opportunity and views Headwall as the premier retail operator in the region and the best sponsor for the future improvement and performance of this asset. SageView is participating with Headwall as passive joint venture partner and has a vested interest in the project's success as the owner of the adjacent Colonnade Centre office building, which was purchased in May 2023.

Contact:
Henry Vaughan
210-343-2186
[email protected]

SOURCE Headwall Investments, LLC