The Palomar Group has announced the sale of Gateway Plaza, a 179,327-square-foot retail center in San Antonio, Texas, in a transaction totaling $16.7 million. The seller was Gray Street Partners, while the buyer was described as a regional real estate investment firm. The deal underscores ongoing investor activity in larger-format retail assets within the San Antonio market.
Gateway Plaza is a multi-tenant retail center anchored by national credit retailers Ollie’s, dd’s DISCOUNTS, Dollar Tree, and DG Market. These tenants provide a discount- and value-oriented merchandising mix, positioning the property to serve a broad base of everyday consumer demand. The presence of multiple nationally recognized brands gives the center a diversified anchor profile rather than reliance on a single major tenant.
At the time of closing, Gateway Plaza was reported to be 90% occupied. All three anchor tenants were noted as having ample remaining lease term along with options in place, which may help support income durability over the near to medium term. In addition, the tenancy is distributed so that no single tenant occupies more than 19% of the property’s gross leasable area, limiting concentration risk to any one occupant.
The center was originally constructed in 1988 and underwent a renovation in 2024. The recent capital investment positions the property with updated improvements while maintaining its established location within the San Antonio retail landscape. The combination of a long-standing asset with modernized features and a stabilized rent roll enhances its profile as an institutional-caliber retail investment.
The $16.7 million sale of Gateway Plaza involved a private seller, Gray Street Partners, transitioning ownership to a regional investment group seeking exposure to a multi-tenant retail asset in Texas. While the buyer was not named, the transaction reflects continued interest from regional capital sources in established shopping centers backed by nationally branded tenants.
The Palomar Group, which announced the transaction, is a full-service commercial investment sales firm headquartered in Augusta, Georgia. The firm specializes in the sale of single-tenant, multi-tenant, and multifamily properties across the United States. According to the company, it has completed more than $2.5 billion in transactions spanning 23 states and over 14 million square feet, indicating deep experience in marketing and executing retail and other income-producing property sales.
Gateway Plaza’s combination of national credit anchors, strong reported occupancy at closing, and recent renovation provides insight into the type of retail product trading in the current environment. This transaction highlights how value- and discount-oriented retail formats continue to find favor with investment buyers when paired with established locations and diversified tenant rosters.
