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By Ryan Salchert – Reporter, San Antonio Business Journal
August 16, 2018

 

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An estimated $2.77 billion in multifamily and commercial real estate involving 2,139 properties was sold in the San Antonio metro area from Jan. 1, 2017, to Aug. 6, 2018, according to data from CoStar Group.

The makeup of buyers and sellers is as diverse as the types of properties changing hands, and their reasons say much about where the local market is and where it’s heading. On the buying side, there are investors such as brothers Jeff and Rami Kotel, co-founders of Woodland Hills, California-based Kotel Investments. Since 2017, the Kotels have bought 14 retail, office and industrial properties across San Antonio, worth roughly 11.5 million, according to the Bexar County Appraisal District. Other buyers such as Chicago-based Sherman Residential spent an estimated $100 million to buy the 308-unit Axis at the Rim and the 399-unit Pecos Flats.

Not only has San Antonio attracted buyers from more than half the states in the country and every major market in Texas, but also international investors. Since 2017, Vancouver, Canada-based Western Wealth Capital bought three apartment complexes for nearly $64 million, and even local companies are making some big investments, like newly formed Kairoi Residential, which bought a 1,210-unit apartment portfolio that was appraised at $48.1 million.

Real estate’s predicable life cycle also means that most buyers will eventually become sellers, as will builders. San Antonio has seen many developers sell newly built properties recently, including local developer Embrey Partners, which sold three apartments that were last appraised for $134.8 million or Atlanta-based Robinson Weeks Partners and Albuquerque, New Mexico-based Titan Development, which sold two properties at the Enterprise Industrial Park for $52.1 million. And buyers who came to San Antonio seeking value-add properties have invested in improvements, stabilized occupancy and moved onto new opportunities, like local investment firm Redrock, which sold the Highpoint Towers for an estimated $31.5 million or Santa Ana, California-based NNN Apartment REIT Inc., which sold two apartments that were apprised for $58.6 million.

The numbers

As San Antonio’s image has grown on the national stage, so too has the volume of its real estate transactions.

The number of commercial and multifamily transactions in San Antonio has more than doubled in 10 years. From Jan. 1, 2007, to Aug. 1, 2008, before the recession, there were 1,044 commercial real estate transactions in San Antonio, according to CoStar Group, representing a sales volume of roughly $1.08 billion. Current numbers show that retail transactions alone outpaced all sales a decade ago, with 1,093 properties sold in the last year and a half. These retail transactions accounted for roughly $453.6 million and 9.4 million square feet of property. While multifamily accounted for the least-sold property type from 2017 to 2018, only 227 transactions, it accounted for a vast majority of the sales volume during that period and alone outpaced the total sales volume from 2007 to 2008 of roughly $1.6 billion.

Why value-add investors are buying in San Antonio

Commercial real estate buyers, regardless of the types of property they’re seeking, generally fall into two categories: the value-add investor and the core investor. Value-add investors are generally looking for more affordable, perhaps older product that can be improved to maximize their investment.

“There’s no question that the largest buyer pool today in San Antonio is chasing value-add properties,” said Matt Michelson, managing director for ARA, A Newmark Company.

Several notable buyers, such as Kotel Investments, have chosen San Antonio because of the value-add opportunities the city presents.

“San Antonio has always been good for us,” Jeff Kotel said in May. “Everything we hear [about San Antonio] 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.”

Other buyers, like Western Wealth Capital in Canada, have begun investing in the San Antonio market because of its low risk and potential for growth. Since November, the company has bought three apartment complexes: the 204-unit Sereno Park, the 276-unit Brynwood Apartments and the 296-unit Sedona Canyon.

“We believe San Antonio is at a perfect intersection, providing the lowest investment risk and the longest runway for opportunity,” Western Wealth Capital co-founder and CEO Janet LePage said last year. “In terms of timing and potential, San Antonio is at an excellent entry point to create scalable growth.”

Why core investors are buying in San Antonio

As many value-add investors as San Antonio attracts, the city has also seen its share of core investors recently. These buyers seek the best and flashiest properties, often those that have been recently built and are stabilized. These sales typically make headlines due to their prices. In mid-2017, Suffern, New York-based Castle Lanterra Properties bought the 349-unit Agave Apartments in Southtown, which was appraised at $72.5 million. Castle Lanterra Properties founder and CEO Elie Rieder said San Antonio’s growing reputation and economic strength helped make her decision to invest here.

“San Antonio has emerged as one of the strongest multifamily markets in the country due to its exceptional economic and population growth,” Rieder said last year. “In Agave, we identified a best-in-class property that fits perfectly with our strategy of complementing our existing value-add portfolio with stable core urban assets in irreplaceable locations. We will continue to pursue opportunities in both asset classes.”

And San Antonio doesn’t just provide opportunities for core multifamily buyers. Last year, USAA Real Estate Co. bought the $88 million Bank of America Plaza downtown from a pair of investors from the Northeast, and the Business Journal recently reported that New York City-based private equity firm Blackstone Group LP is under contract to buy San Antonio’s most expensive property, the 644-acre JW Marriott San Antonio Hill Country Resort & Spa, for a nearly $650 million.

“Overall, our investment strategy has been to target high-quality, well-located assets, and we do know that this is one of the premier buildings in San Antonio,” said Samira Bitar, senior director of marketing at USAA Real Estate Co., about the Bank of America Plaza in August 2017.

 

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By Ryan Salchert – Reporter, San Antonio Business Journal

June, 2018

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Woodland Hills, California-based Kotel Investments, which owns more than 50 industrial and retail properties between San Antonio and Austin, has bought four properties in San Antonio and sold a 50,175-sqaure-foot commercial park in Austin, the firm announced.

The group closed on the following properties in San Antonio:

  • 13607 Topper Circle, 5,450 square feet, office warehouse
  • 10500 Broadway St., 20,000 square feet, office warehouse
  • 819 and 823 S. Laredo St., 13,000 square feet, office warehouse
  • 8121 Culebra Road, San Antonio, 14,000 square feet, retail center

The properties will be managed by Kotel Investments MGMT Inc. While the founders of Kotel Investments, brothers Jeff and Rami Kotel, did not specify the price of each property, the combined value of the portfolio was last appraised by the Bexar County Appraisal District for $3.8 million.

The firm also recently sold the 50,175-square-foot Bratton Lane Commercial Park in Austin for an undisclosed amount to an undisclosed buyer. Located at 16501 Bratton Lane, the property was appraised by the Travis County Appraisal District for $3.8 million. Joshua Swank of NAI Partners brokered the deal on behalf of Kotel Investments.

 

 

 

 

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By Ryan Salchert – Reporter, San Antonio Business Journal
May 14, 2018

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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.

 

 

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By Ryan Salchert – Reporter, San Antonio Business Journal

April 16, 2018

Kotel Investments Inc., a real estate investment company with offices in Southern California and San Antonio, tapped Houston-based NAI Partners’ landlord services division to manage its San Antonio retail portfolio.

NAI Partners, in turn, assigned the six-property, 205,000-square-foot portfolio to Cindy James, a San Antonio-based property manager who has been in commercial real estate for more than 20 years. James comes to NAI Partners from Endura Advisory Group, where she had a similar role and responsibility over Kotel Investment’s portfolio.

The new portfolio, which includes such retail centers as 1546 Babcock and 12066 Starcrest Drive, nearly triples the amount of space under management for NAI Partners in the San Antonio market.

The company’s initial foray into San Antonio property management was Marymont Office Park, which the company’s investment fund bought last fall.

Earlier this year, NAI was named the exclusive broker for Rockport Terminals, a 230-acre industrial site with access to rail, water and multiple highways in Corpus Christi. As reported in December by the Business Journal, San Antonio oil and gas entrepreneur Clayton Reaser and partners, including Ed Nelson, are behind that redevelopment, which is one of the largest parcels available in the Port of Corpus Christi area. A three-man team at NAI Partners — John Ferruzzo, a partner who heads the firm’s industrial group; Nick Peterson; and Ryan Searle — and local expert Blue Brooks of NAI Blue Market are the industrial sales professionals marketing the listing.

 

Date: June 17, 2016

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San Antonio hits the sweetest spot when it comes to homeownership across the country

By: Katie Burke

What can you find at the intersection between job growth and the point when a buyer breaks even on a home purchase? It’s what Zillow calls the homeowner’s sweet spot, and according to the Seattle-based research firm, San Antonio’s residential market lands squarely in the middle of it, ranked No. 1.

San Antonio is one of the best markets in the country when it comes to owning a home due to its strengthening labor market and short “breakeven horizon” — how long home buyers need to stay in a home before buying it makes more financial sense than renting.

 

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Date: Sep 26, 2014

New buys renew Kotel Investments’ focus

By: Tricia Lynn Silva

Kotel Investments Inc. recently closed on the purchase of three retail centers in North Central San Antonio.

The buys represent the firm’s renewed focus on San Antonio’s retail industry, said brothers and Kotel co-founders Rami and Jeff Kotel.

Rami and Jeff Kotel have built their firm with a focus on establishing partnerships with their tenants.

As part of that mission of putting the tenant first, they have begun rehabbing all the properties — an investment that is already reaping rewards for Kotel Investments, which is dually headquartered in San Antonio and Woodland Hills, Calif.

“We’re getting calls twice a day,” …

 


 

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Date: Nov 27, 2013

Kotel Investments buys retail properties

in far Northeast San Antonio

The state of San Antonio’s retail sector is prompting a new round of acquisitions by Kotel Investments Inc.
Earlier this month, the firm, which is dually headquartered in San Antonio and Woodland Hills, Calif., closed on the purchases of Judson Plaza, an 18,750-square-foot center located at 9160 FM 78; and Bell North Park, which spans 20,400 square feet at 17361 Bell North Drive.
The properties are located in Converse and Schertz, respectively — two towns just northeast of San Antonio that are seeing a significant amount of growth, say brothers and co-founders of Kotel Investments, Rami and Jeff Kotel.
The centers have not lacked for tenant interest. Kotel Investments recently inked two deals for the two remaining spaces at Judson Plaza — for a Chinese restaurant of 1,250 square feet; and a dentist office of 2,000 square feet.
Kotel Investments also is in talks with potential tenants for the last bit of real estate up for grabs at Bell North — two restaurants spaces of 1,400 square feet and 1,500 square feet.
Bell North is in an ideal spot, officials say, because it is just down the street from Amazon.com’s new 1,3-million-square-foot fulfillment center.
Housing, new business centers, new industrial parks — much of that development is centered within the far Northeast Side of greater San Antonio.
What is lacking from the area, however, is retail development.
“This is a very good market for us,” says Rami Kotel.

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Date: Feb 8, 2013

Real Estate Round Up

Kotel Investments’ properties pumped up by leasing activity

By: Tricia Lynn Silva

Kotel Investments is off to a good start in 2013 — to the tune of more than 98,000 square feet of leasing activity across its industrial properties.
The deals are a mix of new leases and renewals, says Rami Kotel, a co-founder in Kotel Investments, which is dually headquartered in San Antonio and Woodland Hills, Calif. His partner is his brother, Jeff.
The lion’s share of that activity, 63,000 square feet, is taking place right here in San Antonio,Rami Kotel adds. Some of those transactions have provided both Kotel Investments and its tenants a chance to diversify a bit.
Case in point is the business park that Kotel Investments owns at 12006 Starcrest Drive in North Central San Antonio.
Business owner John Moretta recently renewed his lease of 5,000 square feet at Building 1. The space serves as the dealership for Moretta’s company, Ducati of San Antonio — which specializes in high-quality motorcycles, including the Ducati brand. Moretta has also inked a new lease for 8,000 square feet in Building 5 in the Starcrest business park.
The Vette Center is Moretta’s way of building off of his dealership of Ducati motorcycles — a well-known Italian brand of bikes, and a line that the business owner describes as “the coolest brand out there” when it comes to motorcycles.
The Vette Center gives Moretta a venue for expanding the cool factor. “Corvettes are cool,” he says. “We like cool things.”
Cool factor aside, the Vette Center — with its focus on corvettes and other higher-end cars, also gives Moretta a vehicle for distinguishing his dealership from other independent car dealers.
It also gives him a chance to stay involved with the client base he has built with Ducati — a group of consumers who Moretta believes will also be interested in other “high-end cool toys” like corvettes.
Building a partnership
The latest round of leases at Kotel Investment’s local business parks are an indication of the health of San Antonio’s real estate industry — including its industrial sector, says Rami Kotel.
Those deals also speak to the relationships that Rami and Jeff Kotel have built with their tenants, says Moretta, who opened Ducati of San Antonio three years ago. At the time of Ducati’s debut, Kotel Investments had not yet purchased the business park. The decision to renew and expand at the business park, however, had much to do with that fact that Kotel Investments is the landlord now. “Rami and Jeff Kotel are not just landlords,” Moretta says. “They are interested in seeing us succeed. They are open to accommodating what our business needs are. It’s more of a partnership.”

Fitness express

Gold’s Gym recently announced plans for two new ground-up developments in San Antonio’s far West Side — a 54,000-square-foot gym at Potranco Road and State Highway 151, and a 49,000-square-foot facility at Loop 1604 and Culebra Road.
These gyms will be number 21 and 22 for Gold’s Gym network of facilities in San Antonio.
Make that number 21 and 22 — and counting.
“Our real estate team is fairly active in the market,” says Todd Scartozzi, chief operating officer for Gold’s Gym. But the more traditional prototype may not be the only path to expansion here. The Venice, Calif.-based chain also operates a network of Gold’s Gym Express facilities — which range in size from about 14,000 to 19,000 square feet.
The gyms feature full locker rooms and the chain’s array of state-of-the-art equipment — sans a pool, basketball court, group exercise classes and child care.“It’s a self-service model,” Scartozzi explains.
This model, he adds, is ideal for second-generation real estate — which is still available at good rates given the state of the economy. And it is a good model for filling in a market. The Express facilities are usually built within 3 miles of an existing full-service gym, says Scartozzi, who confirms that Gold’s Gym is looking at sites in San Antonio that could be a good fit for the model.
Of course, more full-service clubs are not out of the question either. “We are very bullish on San Antonio,” he says.

 

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Feb 6, 2013, 4:10pm CST

Kotel Investments pumping up its industrial portfolio,

while Gold’s Gym looks to pump up San Antonio

 <br /> Gold's Gym International is scouting out new locations in the San Antonio metropolitan area. However, unlike the standard big box gym, the company is rolling out smaller Gold's Gym Express.
Gold’s Gym International is scouting out new locations in the San Antonio metropolitan area. However, unlike the standard big box gym, the company is rolling out smaller Gold’s Gym Express.
Kotel Investments, which is dually headquartered in San Antonio and Woodland Hills, Calif., is seeing good leasing activity in its Texas assets — including its portfolio of industrial buildings here in San Antonio.
In the early months of 2013, the firm has already signed 63,000 square feet worth of new leases and renewals here — including one deal that is part renewal, part new lease.
Business owner John Moretta recently renewed his lease of 5,000 square feet at Kotel’s industrial park along Starcrest, in North Central San Antonio. The space serves as the dealership for Moretta’s company, Ducati of San Antonio — which specializes in high-quality motorcycles, including the Ducati brand.
Moretta has also inked a new lease for 8,000 square feet in Building 5 in the Starcrest Business Park. The space will accommodate Moretta’s latest venture — the Vette Center, which Moretta describes as “Alamo City’s place for pre-owned vettes (Corvettes) and cool cars.”
Speaking of new deals, Venice, Calif.-based Gold’s Gym is already on the lookout for more sites for new facilities in the San Antonio MSA, according to Todd Scartozzi, COO for the company.
That expansion may even include developing some gyms under Gold’s streamlined model — Gold’s Gym Express, a prototype that ranges in size from 14,000 to 19,000 square feet.

 

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Date: May 26, 2012

KOTEL ACQUIRES STARCREST INDUSTRIAL PROPERTY
SAN ANTONIO — Kotel Investments has purchased a 40,330-square-foot industrial  property, located at 12066 Starcrest Drive in north central San Antonio. The property consists of five tenants, including Soccer Factory and Ducati of San Antonio. Joshua Swank of Alamo Real Estate Brokers represented the buyer in the transaction.

 


 

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Date: Friday, March 2, 2012

Metroflex

Kotel Investments, Inc. has announced a new tenant at one of its industrial facilities.

Husband and wife team Daniel and Michelle Hagerty have opened the Metroflex Gym San Marcos. The gym is located in a 12,500-sqaure-foot industrial building that is owned by Kotel Investments, at 1942 Interstate Highway 35, in San Marcos.

Metroflex is an Arlington, Texas-based chain that bills itself as a “hardcore training facility” – one with its roots in catering to power lifters and body builders, explains Michelle Hagerty. She and Daniel, however, have also added some features to their franchise location – including group fitness classes, massage therapy and a day care center.

“It’s really a neat concept,” adds Rami Kotel, who co-founded Kotel Investments with his brother Jeff. Their firm is dually headquartered in San Antonio and Woodland Hills, California.

 


 

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News Brief 12-6-11

KOTEL INVESTMENTS ACQUIRE INDUSTRIAL FACILITY IN AUSTIN

AUSTIN – ABKOT Properties, a subsidiary of San Antonio-based Kotel Investments, Inc. has acquired a 15,900-square-foot industrial facility, located at 13802 Turbine Dr. in Austin, for an undisclosed price. The property is currently occupied by CenTex Door & Frame. Kotel was self-represented in the transaction, and Mark Minchew of RE/MAX’s Austin office represented the seller.

 


 

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Investment group is turning tenants into building owners

Premium content from San Antonio Business Journal – by Tricia Lynn Silva
Date: Friday, January 14, 2011, 5:00am CST
A firm bullish on the investment opportunities in San Antonio’s commercial real estate market is now finding its own holdings to be in demand. During the last quarter of 2010, Kotel Investments, Inc. closed on the sale of two industrial buildings it owns in the Alamo City. In both cases, the buyers were companies that had previously been tenants of the buildings.
On the city’s North Central Side, Kotel Investments sold a 10,000-square-foot building at 8902 Broadway to Progressive Solutions. The deal closed in October, according to Rami Kotel, who co-founded Kotel Investments with his brother Jeff. Their firm is dually headquartered in San Antonio and Woodland Hills, Calif. Progressive Solutions had been a tenant in the Broadway building for the last four years, Rami Kotel says. The company works with general contractors to design and manufacture specialized building products – like shade structures and historic building replications – that may not fall within the standard scope of a project.
On the city’s south side, Koru Steel’s first foray into the US Market, says Jaime Salazar Ortiz, who is the manager of the local office. Koru Steel is a distributor of the steel used in commercial constructions projects – including fences, windows and door frames, and roof suspensions. Headquartered in Mexico, Koru Steel was started by Guillen’s father-in-law, Ubaldo Ortiz, back in the 1980s. San Antonio, says Guillen, was the ideal starting point for Koru’s U.S. operations. It is a growing city. And in terms of logistics, San Antonio is prime spot from which Koru Steel can serve clients throughout the country, he adds. As for the decision to buy the Pan Am Building, Guillen says that the company was looking for a long-term investment in San Antonio.
For Kotel Investments, the recent building sales are representative of the good story that San Antonio has to tell, says Rami Kotel, referring to the various media coverage of late that have highlighted the Alamo City’s strength –including its place on Forbes’ list of cities that are best surviving the economic downturn.
To date, Kotel Investments owns about 300,000 square feet of industrial space between San Antonio and Austin. And even as the firm works to bulk up its portfolio, Rami Kotel also expects that there will be more opportunities in the near future for the firm to turn more of its tenants into property owners.

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Friday, January 22, 2010
Real Estate Roundup
Investment duo banking on San Antonio’s vibrant real estate market
San Antonio Business Journal – by Tricia Lynn Silva

Brothers Rami and Jeff Kotel are out to spread the good news about San Antonio. And to infuse some more capital into the city’s real estate market. Jeff and Rami are the founders of Kotel Investments Inc. – an investment firm that is dually headquartered in San Antonio and Woodland Hills, Calif. To date, the brothers own about 300,000 square feet of industrial space, both here and in the city of Austin, says Rami Kotel. And they are looking for more. It is the role of Kotel Investments to bring investors – primarily California-based entities – to the deal-making table. Each property in the Kotel portfolio is owned via a joint venture that includes the Kotel brothers.

The challenge right now is finding investment-grade properties in the Alamo and Capital cities, because current owners of those properties don’t want to let go of them absent a premium price. “It’s slim pickings,” says Rami Kotel. Owners are holding fast to their asking prices, which has resulted in a standstill between potential buyers and sellers. “We are searching for investments,” adds Jeff Kotel.  “we have to really, really search hard.”

But the work, the brothers say, is worth it – to have a stake in well-performing cities like San Antonio.  “Everywhere else, the market is going against (rela estate investors), Rami Kotel says.  “People are moving to Texas, and San Antonio especially, from every other state.”

Destination: S.A.

The bullish outlook that the Kotels have for San Antonio is a trait that runs in their family – including in their uncle, local developer Efraim Abramoff. It is Abramoff who convinced Jeff and Rami that San Antonio is a good market in which to invest.  Abramoff is the president of development/investment firm Ariel Texas Star Inc.  Adds Rami Kotel: “We took his advice, and we have been focusing on San Antonio ever since.”

In fact the brothers continue to work with their uncle on some local projects – including retail center the Shops at Churchill Estates.  The owner of the retail center is EA Partners, an entity that includes Jeff and Rami Kotel and Abramoff. To date, teh Shops at Churchill is 80 percent leased.  That figure includes a trio of new leases that were recently signed for tenants Lizzy’s Gift & Bridal, home-decor buisness Gracious Living; and Blend, a new arrian in San Antonio that specializes in smoothies and nutritional supplements.  Rami Kotel expects that the Shops will be 100-percent leased by this summer.

The challenge is creating the right tenant mix.

Adds Rami: “We’re not looking at the next 12 months, we’re looking three to five years into the future.”

In the meantime, the brothers will continue to spread the word about two of the strongest cities on the real estate landscape today.

Says Rami Kotel: “Our job is to bring investors (from California) to San Antonio and Austin.”

 


 

 

Hapes Properties purchases industrial building on 8.2 acres
1/15/2008 (Austin-Round Rock:Industrial) (San Marcos)
Hapes Properties, a subsidiary of California-based Kotel Investments, has finalized the purchase of an industrial building located at 1942 I-35 in San Marcos.  The Interstate Business Park which is a one-story, 122,000-sf building, is built on 8.2 acres.  Austin, Texas-based Southerwest-Hawaii Partners was the seller. (Texas Real Estate Business)
 2014-06-10 13.56.29
 Former Tenant ……..

San Antonio Group Sells Buda Warehouse for $1.1M
April 23, 2008

San Antonio investment firm Kotel Investments Inc. sold a 12,100-square-foot warehouse at 236 Trademark in Buda, TX, to Mason’s Mill & Lumber Co. for $1.1 million, or approximately $91 per square foot. Michael Spellings’ Mason’s Mill & Lumber Co., of Houston, will open a new location at the site.
Randy Lee of McAllister & Associates represented the seller. James Erdeljac of Re/Max River City represented the buyer.
Please refer to CoStar COMPS #1513681 for more information

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Ariel Texas Star Principals (L to R) Rami Kotel, his brother Jeff Kotel with their uncle and the company’s founder Efraim Abramoff.
Ariel Texas Star bringing local flavor to its latest endeavor
San Antonio Business Journal by Tricia Lynn Silva
Ariel Texas Star's business shines on North Central Side
 
A New retail center currently under construction in North Central San Antonio is enjoying a healthy leasing run.
Of the 33,131 square feet of space originally up for grabs in the Shops at Churchill Estates, almost 26,000 sqaure feet is already pre-leased, according to Efraim Abramoff, president of the development/investment firm, Ariel Txeas Star, Inc.
And talks continue with tenants to finish out leasing space in the development, he adds.
“With the combination of tenants we have now, almost everything will work there.” adds Rami Kotel, Abramoff’s nephew and the head of promotions for Ariel Texas Star – the developer and general contractor of the project.
The Shops at Churchill is part of a larger, mixed-used development by Ariel Texas Star – called the Huebner Town Center.  In all, the Town Center is expected to span 13 acres at the southeast corner of Huebner Road and Churchill Estates Boulevard.
Operations signed up for the Shops at Churchill include Christian Treasures, Fitness 19 and Quilters Point.  The ventures will occupy 2,675; 6,500 and 7,500 square feet, respectively.
Fitness 19 is a new health club making its debut in San Antonio, courtesy of Ariel Texas Star’s development.  The company bills itslef as a mid-sized facility geared toward the neighborhoods surrounding its clubs.  The chain offers month to month memberships.
A GOOD NEIGHBOR
Speaking of new concepts, locally based Centofanti Corp. is also bringing a new eatery to the Shops at Churchill: Luciano Neighborhood Pizzeria.  The restaurant will boast quality food at a good price, syas Luciano Centofanti.
Luciano Neighborhood Pizzeria will feature a rustic theme, including lots of ceramics from Italy, Centofanti adds.  The restaurant will also be decked out with displays showing off the firm’s bakery, salads and deli selections.
Centofanti’s food has become a noted staple at several malls, including local retail centers North Star, Rivercenter and Ingram Park – thanks to concepts such as Ristorante Luciano, La Villa Pizza and Cento & Fanti Brick Oven Pizzeria & Bakery.
CLOSE TO HOME
The Shops at Churchill is an ideal starting point for the neighborhood pizzeria concept.  Centofanti says.
“There is plenty of housing, and ther is a need for a retaurant for this type.” he says.
The homes and the line-up of tenants at the shopping center also bodes well for a lot of foot traffic, adds Greg Entzenberger, manager and co-owner of Christian Treasures. He is making the move to the Shops at Churchill after 30 years at 3449 Fredericksburg Road on the city’s Newest Side.
“Back when we moved (to the Fredericksburg sit), this was the North Side.  But now it’s time to move a little further north.’ says Entzenberger, who expects to have the new store up and running by Oct. 1.
FRUITFUL BUSINESS
Helping Abramoff guage the market are his two partners – nephews Rami and Jeff Kotel.
Later this summer the brotheres – who have been silent partners of sorts in Ariel Texas Star in the past will be moving to San Antonio and taking on a larger role in the business.
“My partners have never been so pleasant to work with,” says Abramoff of his nephews whom he sees as the future of his business.
Both brothers will be in charge of managing and leasing Ariel Texas Satr’s projects, Abramoff adds.  In addition, Rami Kotel will be head of promotions for the firm: Jeff Kotel will be handling the financial aspects of the business.
For the past several years, the Kotel brotheres were involved in the Los Angeles rela estate market.  The move to San Antonio, they say, is a welcome pne.
“We were drawn to the opportunity and to the people,” says Rami Kotel, who describes the local business atmosphere here as “comfortable.”
It’s very calm,” Jeff Kotel adds.
“San Antonio is more friendly.  You can accomplish more in a shorter time,” adds Abramoff.  I worked (in the LA real estate industry) for five years, Ethics are hard to find.”

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An Office project in North Central San Antonio will soon have some retail company.  Local developer Efraim Abramoff says contrsuction will begin next month on the Shops at Churchill Estates.  The 33,134-square-foot retail center will be located at the southeast corner of Huebner Road and Churchill Estates Boulevard.
Shell spaces should be ready for tenant finish-out by next February, says Abramoff, president of the development/investment firm Ariel Texas Star, Inc.
The Shops at Churchill project will join an office development also in the works for Huebner and Churchill Estates.  To date, the Huebner Town Center consists of 15,000 square feet of space – spread out over three garden offices that are 4,000, 5,000 and 5,000 and 6,000 square feet each.  The buildings came online back at the end of 2005.  To date, the Town Center is 66 percent leased; only the 5,000 square-foot building is still up for grabs, according to Abramoff.
The reception for the office project thus far also prompted the developer to begin work on phase two of the Huebner Town Center, which is a two story office building encompassing 31,900 square feet.  Construction will begin within the next 60 days, according to Robert Adams, in-house consultant for Ariel Texas Star.  The shell spaces are to be ready by next June, he add.s
Ariel Texas Star is serving as both developer and general contractor on both the Town Center and the Shops.
And the work is far from over, notes Abramoff, who owns roughly 13 acreas at the Huebner ad Churchill Estates intersection.  Over the next two years, he plans to bring a grand total of 200,000 square feet of commercial development to this intersection.
Ariel Texas Star’s business shines on North Central Side
“We plan to stay light on our feet and adapt as we go along.” he adds.
Abramoff has chosen wisely in terms of locations for his latest retail and office projects, says Ernest Brown, executve vice president and managing director for the local office of Grubb & Ellis Co.  The project is in an area that boasts impressive demographics – namely a lot of housing and some higher incomes.
The trick will be guaging just how much office and retail development the area needs.  That Abramoff has been going forward with smaller bits of space at a time wold work his advantage, Brown continues.
“He does 15,000, 20,000 or 30,000 square feet and fills that in.  (Abramoff) will be able to guage when the market gets sated.”