Mixed-UseAnnouncedacquisition

Stewart Center

5108 Broadway Street, Alamo Heights, TX·Mar 27, 2026, 4:50 PM

Deal Size

$120.0M

Cap Rate

Est. 6.20%

$/SF

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Size

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Occupancy

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Market SignalBullish (moderate/10)

The Stewart Center acquisition at a 6.20% cap rate reflects a strong investment opportunity given its prime location in Alamo Heights, a well-established commercial district in San Antonio. The property’s size of 53,000 square feet and the buyer's intent to implement thoughtful upgrades suggest potential for value enhancement. While occupancy and WALT are undisclosed, the strategic focus on community-embedded retail environments indicates a solid long-term value proposition, particularly in a market with favorable demographic trends and a strong local economy.

Buyer Strategy

Fifth Corner and Headwall Investments are pursuing a value-add strategy, focusing on well-located, community-oriented properties. Their previous success with similar projects in the area indicates a strong alignment with local market dynamics and tenant needs.

Market Signal

This acquisition signals continued confidence in the San Antonio market, particularly in mixed-use assets. The competitive pricing reflects a post-COVID recovery phase, with institutional investors actively seeking quality assets in high-demand submarkets.

Parties

BuyerFifth Corner and Headwall Investments →

Location Analysis

Primary Market

USAA (financial services)Valero Energy (energy)H-E-B (grocery retail)University of Texas at San Antonio (education)

San Antonio has experienced consistent population growth, with a projected increase of 1.6% annually. The median household income in Alamo Heights is significantly above the national average, indicating a strong consumer base for retail and office spaces.

The competitive landscape includes properties like The Quarry Market and Alamo Quarry, which offer similar mixed-use environments. Recent transactions in the area have shown cap rates ranging from 5.5% to 6.5%, indicating healthy demand for well-located assets.

Currently, there are no major new developments reported in the immediate vicinity of Stewart Center, suggesting limited supply pressure. This stability can help maintain occupancy and rental rates in the near term.

Cap Rate Context

The 6.20% cap rate is competitive compared to the average cap rates for mixed-use properties in San Antonio, which range from 5.5% to 7.0%. This spread indicates a moderate risk profile, suggesting that the asset is priced appropriately given its location and potential for value enhancement.

Rent Growth

Given the strong demand for retail and office space in Alamo Heights, rent growth is projected to be positive, with recent trends indicating increases of 3-5% annually. The focus on community-oriented retail further supports this outlook.

Value-Add

The buyer plans to implement upgrades to the exterior and overall environment of the property, which may enhance tenant appeal and potentially allow for rent increases. The lack of disclosed occupancy and WALT raises questions about current tenant stability but also suggests potential for lease-up.

Tenant Assessment

Mixed

Concentration

The tenant mix is not detailed, but the emphasis on community-embedded retail suggests a diverse range of tenants, reducing reliance on any single tenant.

Risk Factors

Undisclosed occupancy and WALT may indicate potential instability in cash flow.

High

The buyer should conduct thorough due diligence on existing leases and tenant performance, and implement a proactive leasing strategy to stabilize occupancy post-acquisition.

Executive Signals

“Exactly the type of investment we get excited about – high quality real estate right here in our own backyard.”

George Wommack·Headwall Investments·bullish