H-E-B has sold off 7.5 acres on San Antonio’s far North Side to a local commercial real estate firm.
H-E-B sold the site with restrictions on what type of development is allowed.
The deed transferring the property includes a clause stating that, for the next 55 years, no business at the site can devote more than 500 square feet or 5% of its floor space, whichever is smaller, to the sale of produce, meat, seafood, dairy, cleaning supplies, pet food and other groceries and household goods. The clause allows for a convenience store of 6,000 square feet or less, a card or stationery store that’s 2,500 square feet or less or a liquor store of 3,000 square feet or less.
Adding development restrictions to land sales is a common practice by H-E-B and other retailers to keep competitors from invading their turf.
H-E-B’s closest grocery store is nearly 5 miles away at 23635 Wilderness Oak in the Stone Oak neighborhood, while the nearest competitor is Sam’s Club, located 6.1 miles south at 2530 Summit Church Road.
Birnbaum Property is working on several retail developments in town. A little more than a mile away from the former H-E-B land, the retail firm is developing a 10,999-square-foot project, dubbed Borgfeld Crossing, at the intersection of Borgfeld and Highland Crest, according to its website.
H-E-B declined a request for comment on the sale. Birnbaum Property did not respond to a request for comment.