Since entering the market 14 years ago, Jeff and Rami Kotel, brothers and co-founders of Kotel Investments, have amassed nearly 50 industrial and retail properties between San Antonio and Austin, and the California-based duo will soon add four new ones to their growing Texas portfolio.
“We’re actively purchasing properties right now, and we’re definitely in the buying mood,” Rami Kotel said.
Starting their real estate careers in San Antonio under the their uncle Efraim Abramoff, president of development and investment company Ariel Texas Star Inc., the brothers moved to Woodland Hills, California, to start Kotel Investments. Mainly concentrating on commercial real estate investing and leasing, the brothers looked back to San Antonio to start investing in properties.
The four properties on the Kotels’ current shopping list consist of three industrial spaces and a retail center — all either Class B or C products. And while they don’t currently develop property in Central and South Texas, they revealed plans to build an industrial spec building on 10 acres in Kyle.
“San Antonio and Austin’s industrial markets are very hot right now, and there’s a definite need for space. That’s why we’re thinking of developing in Kyle. There’s hardly any inventory out there and quite a big demand for it,” Rami Kotel said.
Kotel Investments has industrial product across a majority of the Interstate 35 corridor, including in the strong industrial market of Schertz. Industrial buildings make up nearly 75 percent of the company’s portfolio, it said.
“San Antonio has always been good for us,” Jeff Kotel said. “Everything we hear is always positive news, and while it’s not as fast of a market as you’d see on the West or the East, you also don’t really have to worry about downturns.”
While industrial space remains the company’s most desired product for investment, Kotel owns a fair amount of retail space. As online retail sales have become more of a factor, the company’s approach to retail leasing has had to change too, Rami Kotel said.
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“Our approach has changed in a big way. The types of tenants we look for are different now, more service-related tenants like restaurants, doctors, salons and fitness types,” Rami Kotel said.
Kotel Investments’ retail properties are experiencing an average of 97 percent occupancy. While the company handles leasing for its properties, it announced in April that Cindy James of NAI Partners will manage six of its San Antonio retail properties.
