CBRE Secures Nonrecourse Loan for 353K SF San Antonio Mixed-Use Development

A 353,000-square-foot mixed-use property in San Antonio has secured new financing through CBRE, signaling ongoing lender appetite for well-positioned Texas commercial real estate assets.

According to Shopping Center Business, CBRE arranged a nonrecourse loan for The Legacy, a mixed-use development in the San Antonio market. CBRE executives John Fenoglio and Brock Hudson negotiated the financing package on behalf of the ownership.

Key Details

Property: The Legacy — 353,000-square-foot mixed-use development

Location: San Antonio, Texas

Financing Type: Nonrecourse loan

Brokers: John Fenoglio and Brock Hudson, CBRE

Nonrecourse financing structures have become increasingly sought after in the current market environment, as they limit borrower liability to the collateralized asset itself. This structure provides a layer of protection for investors while allowing lenders to underwrite based on the property's cash flow and asset value rather than the full balance sheet of the sponsorship team.

The involvement of CBRE's debt placement team — specifically Fenoglio and Hudson, who focus on securing capital for commercial real estate transactions — indicates the property likely presented strong fundamentals that attracted lender interest despite tighter credit conditions seen across much of 2023 and into 2024.

Market Context

San Antonio's commercial real estate market has remained relatively resilient compared to other major Texas metros, benefiting from steady population growth and a diversified economic base anchored by military installations, healthcare systems, and a growing technology sector.

Mixed-use properties have garnered increased attention from both investors and lenders over the past several years, as they offer income diversification across retail, residential, office, and entertainment components. The asset class is viewed as benefiting from the live-work-play trend that has influenced development patterns nationwide.

The 353,000-square-foot scale of The Legacy positions it as a meaningful presence in the local market. For context, properties exceeding 300,000 square feet in mixed-use configurations tend to attract institutional capital and regional banking relationships, particularly when located in growth-oriented Sun Belt markets like San Antonio.

Texas continues to be a target for commercial real estate investment, with the state's business-friendly regulatory environment and lack of state income tax drawing both corporate relocations and individual migration. San Antonio, while sometimes overshadowed by Austin and Dallas in CRE coverage, has consistently delivered stable occupancy rates and rental growth across multiple property types.

The successful closing of this financing arrangement suggests that capital remains available for quality mixed-use assets in secondary and tertiary markets, even as lenders maintain stricter underwriting standards than those seen during the low-interest-rate environment of 2020-2021. Brokers and borrowers seeking similar nonrecourse structures should expect thorough scrutiny of property-level financials, tenant credit quality, and submarket fundamentals.