Hemisfair to Partner with Zachry, NRP Group for $165 Million Development

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The Hemisfair Distrcit. Graphic by Gustafson, Guthrie, Nichol. Courtesy of Hemisfair.

A joint-proposal by The NRP Group and Zachry Hospitality, LLC was selected by Hemisfair Park Area Redevelopment Corporation for development in the northwest corner of Hemisfair Park.

The proposal for mixed-use developments for two parcels on the corner of South Alamo and South Market Streets was one of 11 total responses Hemisfair received from development firms around the country for the project since their initial call for proposals in March 2015.

After careful review and the shortlisting of first four and then two firms, the NRP Group-Zachry proposal was selected by a “blue ribbon committee of experts,” unassociated with Hemisfair board members or development firms, as the right fit for the job, said Hemisfair CEO Andres Andujar.

(Read more: Suitors Line Up for Hemisfair Development)

Homer Williams of Williams and Dame Development, Bruce Petersen of USAA Real Estate Co., and Larry Speck of Page Architects made up the panel of seasoned experts in development, finance, and planning, respectively. The two “finalist” firms were graded by the panel on their “qualification packages speaking to their history, their financial capacity, and their experience with mixed-use urban projects around the country,” Andujar said.

The $165 million NRP Group-Zachry proposal includes roughly 800,000 square feet of leasable area, including 380 residential units; 75,000 square feet of retail space; 70,000 square feet of office space; a boutique hotel with 200 rooms; and potentially about 800 public parking spaces.

AREA Real Estate will build an apartment complex in the southwest quadrant of Hemisfair.

AREA Real Estate will build an apartment complex in the southwest quadrant (Hemisfair Boulevard). Zachry and NRP Group will develop parcels in the northwest quadrant along South Alamo and Market streets. Graphic by HDR/MIG, courtesy of Hemisfair.

The downtown location near La Villita, the River Walk, Southtown and Hemisfair park itself mean they’ll likely have no problem finding future residents, retail and office tenants, and other customers. The proposed development plan will provide great “connectivity” between locations like Yanguana Garden, Andujar said.

Design renderings for the five-acre project will be released at a later date, pending project approval by City Council and Hemisfair’s board of directors.

Hemisfair policy requires a mixed-income component on every project developed on its public park land. The policy states that between 10 and 50% of units must be saved for those earning 80% or less of the area median income, which was $50,075 in 2014.

This is Hemisfair’s second public-private partnership (P3).the first was with AREA Real Estate who is currently working on a $25 million, 163-unit mixed use project in the park’s southwest quadrant. That project, specifically geared toward “entry level workforce,” will have 50% of units for those who earn 80% or less of the median income range.

(Read more: AREA to Build Hemisfair Residential Project & Parking Garage)

A watercolor rendering demonstrating the scale from the walkers vantage point. Image courtesy of Hemisfair.

A watercolor/preliminary design rendering demonstrating the scale of the AREA Real Estate project in Hemisfair park from a pedestrian’s vantage point. Image courtesy of Hemisfair.

The NRP Group-Zachry project will offer only 10% of units in the median income range, the rest will be rented out at market rate.

The goal for both mixed-use, mixed-income developments, Andujar said, is to increase “residential content” and to engage the entire San Antonio community looking to experience the park.

“We want to make sure (the park) is a place where San Antonians meet, and to achieve that we have to put residents here that are daily users of the park,” he said. “We want to make coming to Hemisfair more attractive for those that are coming to conventions and for tourists and also locals.”

HPARC is now entering into negotiations with the NRP Group and Zachry, and will seek City Council and HPARC Board approval based on those negotiated terms sometime in the future.

“We’re not predicting how long it will take,” Andujar said. “(That) will depend on how complex the deal gets.”

For now, the future of Hemisfair – which includes “increasing the park size and improving its quality” – has Andujar feeling optimistic.

“The beauty of this deal aesthetically speaking is just amazing,” he said. “What’s generally happening in Hemisfair is amazing, and I cannot be any more excited.”

 

https://rivardreport.wildapricot.org

 

CORRECTION: An earlier version of this story misidentified the Zachry Corp. and Zachry Group, the company is actually Zachry Hospitality, LLC .

*Top image: The Hemisfair Distrcit. Graphic by Gustafson, Guthrie, Nichol. Courtesy of Hemisfair.

Related Stories:

Hemisfair Apartment Complex Deal Approved by City Council

AREA to Build Hemisfair Residential Project & Parking Garage

City Unveils Tricentennial Logo, Website and First Corporate Sponsor

Hemisfair’s Civic Park: Will it be Ready by City’s 300th Anniversary?

Suitors Line Up for Hemisfair Development

18 thoughts on “Hemisfair to Partner with Zachry, NRP Group for $165 Million Development

  1. No surprise that Zachry got it. And no surprise that they’re only doing the minimum 10% mixed-income units. If there will be 380 rental units, only 38 will be at mixed-income rates. They could do more.

  2. I am just waiting for someone to Complain about building another skyscraper. LOL. No not here in regressive SA. The rendering shows an 8 story building. Do you think that it will OVERSHADOW THE ALAMO? HE HE HE HE. Let us think about PROGRESS not obstacles.

  3. Considering they evicted many families back in the late 60s to build the public property known as Hemisfair, how is it more people are not questioning the morality of developers joining w the city to reconvert that same property to private residency zoning now? Lots of folks from that old neighborhood would be very pissed seeing this. That property should remain for public park usage, considering the eminent domain means used by the city to procure it forcibly.

  4. Great to see this moving forward, also excited that locally based Zachry Group partnered for the winning submission! Must have been a tough competition with 15 entrants. This will go a long way to activating Hemisfair and all of downtown San Antonio..

  5. Camille wake-up. The HemisFair Park Master Plan approved by City Council called for 24 acres of park. Since then all the buildings on the perimeter of the new civiv park, as if on steroids, have grown exponentially. The final product, delivers a small fraction of what was promised and approved by council. This is an urban land bank fraud.

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