Beloved Texas grocery chain H-E-B has secured land for its first store in Dallas after a lengthy process involving community opposition and zoning challenges. The company, based in San Antonio, plans to build a 127,000-square-foot supermarket at the intersection of Hillcrest Road and LBJ Freeway.
To make this project possible, H-E-B acquired Commerce Plaza Hillcrest, an office campus previously owned by Silver Star Properties. According to Cushman & Wakefield, the three-building property spans 204,650 square feet and nearly 10 acres. Built in 1972, it was valued at $16.8 million in 2025.
H-E-B’s purchase is among the most notable office acquisitions in the region this year. However, gaining approval for development proved more difficult than buying the site itself. Residents raised concerns about traffic and flooding, arguing that the new store would be “out of character” with the neighborhood. Despite these objections, H-E-B received zoning approval last week and expects to open the Dallas store in 2028.
The transaction also represents a significant move for Silver Star Properties as it continues efforts to restructure amid financial difficulties. The Houston-based real estate investment trust has been selling off its Class B office properties during a period marked by internal disputes and leadership changes. In October 2023, Silver Star defaulted on a $259 million CMBS loan from Goldman Sachs. That same year saw former CEO Allen Hartman ousted following accusations of nepotism and mismanagement—allegations he denies.
Under Gerald Haddock’s direction, Silver Star began selling its portfolio of low- to mid-tier office assets while shifting focus toward self-storage properties. The transition has faced setbacks; one subsidiary filed for bankruptcy in 2023 and some properties have faced foreclosure due to outstanding loans.
Meanwhile, H-E-B has continued expanding into North Texas markets throughout the year by acquiring land for additional stores—including a June purchase of 20 acres at FM 1417 and U.S. Route 75 in Sherman—as part of its ongoing regional growth strategy.
“The transaction is a win for the Houston-based real estate investment trust, Silver Star Properties, which has been offloading its portfolio of Class B office properties as it attempts to right the ship amid a bitter proxy war with ex-CEO Allen Hartman,” according to sources familiar with the deal.
