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Kroger Returns to San Antonio Market With Distribution Center for Food Delivery Service

Lease of the Year for San Antonio

Kroger moved into its 67,008-square-foot space at 4235 Milling Road, Building 1, in 2022. (CoStar)
Kroger moved into its 67,008-square-foot space at 4235 Milling Road, Building 1, in 2022. (CoStar)

Kroger, a national supermarket chain, returned to the San Antonio market last year after a 30-year absence from the Alamo City.

But Kroger's comeback to the area isn't with a typical brick-and-mortar store. Kroger signed a 67,008-square-foot lease for a distribution center at the Centerpoint Logistics Park that serves as a last-mile delivery hub.

The San Antonio hub at 4235 Milling Road, Building 1 works alongside Kroger's distribution center in Austin, Texas, as support hubs for Kroger's main advanced robotics warehouse in Dallas.

The distribution center is expected to support 160 new jobs and alter how locals go about their grocery shopping. The deal earned a 2023 CoStar Impact Award, as judged by real estate professionals familiar with the market.

About the project: Dallas-based real estate developer Jackson-Shaw completed the building Kroger leased in 2021 and sold it as part of a larger portfolio deal to Nuveen at the end of 2021. Kroger leased its space in March 2022 and moved into the building in April 2022.

What the judges said: “Kroger returning to San Antonio is a big win for the city and the resulting job creation is notable,” said Gary Hebert, managing director of Partners Real Estate.

They made it happen: Kevin Cosgrove and Walter Simpson of Stream Realty Partners represented the landlord.

Stream Realty Partners-Central Texas' Walter Simpson and Kevin Cosgrove. (CoStar)