ZRP Sells San Antonio Shopping Center

The property last traded in 2020.

Aerial shot of The Mercado at Scottsdale Ranch
ZRP entered the Arizona market in spring with the acquisition of The Mercado at Scottsdale Ranch. Image courtesy of Newmark

Ziff Real Estate Partners has sold Castle Hills Market, a 97,682-square-foot neighborhood shopping center in San Antonio. Kobalt Investment Co. purchased the asset with the help of a $11.7 million loan provided by Woodforest National Bank, according to public records. JLL brokered the transaction.

ZRP purchased the shopping center back in 2020. Two years later, the property became subject to an $8.6 million loan provided by Randolph-Brooks Federal Credit Union, CommercialEdge data shows.

Back in April, ZRP entered the Arizona retail market with the purchase of Mercado at Scottsdale Ranch, a 118,751-square-foot shopping center in Scottsdale, Ariz., for $26.5 million. 


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Castle Hills Market came online in 1986 on some 6.7 acres. Since its purchase four years ago, the previous owner enhanced the center through physical property improvements, leasing strategies and tenant upgrades.

The tenant roster includes a diverse mix of retailers such as Bygones, Rainbow Language Academy, Allstate Insurance, Coke Management Group, Azro, Ballet San Antonio and Beast Fitness, among others.

Located at 2211 NW Military Highway, the property is in the heart of North Central San Antonio, in the Castle Hills neighborhood, and has access to interstates 10 and 410. The retail center is positioned near residential neighborhoods and the San Antonio International Airport.

The JLL team of Senior Director John Indelli, Director Whitney Snell and Senior Managing Directors Chris Gerard and Ryan West brokered the deal.

San Antonio’s retail market

Although there was a minor dip in net absorption in the second quarter, the retail market trends in San Antonio remain strong, suggesting a positive outlook. The metro’s vacancy rate clocked in at 4.0 percent—up 20 basis points from the previous quarter—while the average monthly rental rate reached $19.83 per square foot, according to a Partners Real Estate report.

San Antonio recorded 496,355 square feet in deliveries in the first half of 2024, while The North Central submarket had 55,662 square feet under construction and 9,880 square feet delivered in the second quarter.

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