Since entering the local market in 2004, Jeff and Rami Kotel, brothers and co-founders of California-based Kotel Investments, have amassed over 50 industrial and retail properties between San Antonio and Austin.
In the past month, they’ve added two new retail centers — Sterling Oaks shopping center and the Austin Heights Retail Center — in the Alamo City to their holdings on the North Side.
“We have a lot of presence in retail now. On the North West side, on the east, we’re able to bring over tenants who need more space or want to expand their operations. We were doing more industrial in the past years, but the retail seems to be doing better,” said Rami Kotel.
According to the duo, the Austin Heights center was bought from Houston-based Transwestern and the Sterling Oaks location from ObsidoCommerical. The brothers did not specify the price of each property.
Kotel is still in the process of securing new tenants for empty spaces at the shopping centers.
“Small businesses are about 80% of our portfolio. We’re able to work with our tenants — we really try to expand with the mom and pop businesses,” Rami said, adding that Kotel has continued to focus on Class B and C retail centers with high occupancy percentages and low rents.
For future local investment, the Kotel brothers said they’ll continue to keep an eye on investment opportunities along the I-35 corridor, where they’ve already amassed significant industrial product.
“We’re also focusing more on smaller industrial properties. What Austin is today is what’s coming in San Antonio. We’re behind, but it’s all going back to San Antonio. With occupancy and market values,” Rami said. “In all the years we’ve owned real estate, we’ve never seen it so robust.”
The Kotel brothers started their real estate careers in San Antonio under their uncle Efraim Abramoff, president of development and investment company Ariel Texas Star Inc. before moving to Woodland Hills, California, to start Kotel Investments.