FEATURE ARTICLE, JUNE 2005

THE RIM COMBINES URBAN FEELING WITH TEXAS FLAIR
Thomas Enterprises is developing The Rim, a 700-acre project in North San Antonio.
Dan Marcec

North San Antonio is thriving as one of the fastest growing areas in the San Antonio market, and The Rim is on the cutting edge of retail development. Encompassing 1.5 million square feet of retail, The Rim is an extraordinarily unique endeavor.

Thomas Enterprises has begun site work and is set to begin construction of retail space at The Rim. Tenants will begin opening this fall, and the grand opening is planned for spring 2006.

The Rim is a hybrid community that will feature a lifestyle center component, a power center, a hotel and a residential community. In addition, the project will have 14 to 15 outparcels, including a varied lineup of restaurants. Thomas Enterprises already has begun site work and is set to begin construction; development of the retail component will take a year to 18 months before it is completely built out. Tenants will begin opening this fall, and the grand opening is planned for spring 2006.

“We think there’s a lot of opportunity in this market,” explains Jerry Anderson, senior vice president of leasing for Thomas Enterprises. “This deal came to [company president] Stan Thomas after someone else tried to put it together a long time ago, but as soon as Stan saw the vision of the property’s former owner, he jumped in with both feet and made it happen. Overall, he is all about performance.”

The power center envelops the interior of The Rim, and both the lifestyle center and the hotel component will be situated in the middle, surrounded by the major anchors. Other attractive qualities within the community include detailed landscaping and mission-style architecture. “The idea is to pull in the architectural tone indigenous to the area,” explains Anderson. “The Rim is a massive development that incorporates a perfect mix of urban plazas, courtyards, parks and a destination lifestyle center, blending together at center court home life, work, shopping and recreation.”

Stan Thomas is utilizing his Atlanta-based Forum Development to merchandise and lease the lifestyle portion of the Rim. Wakefield & Beasley is designing much of the architecture, and Pape Dawson is managing most of the engineering. Overall, though, Thomas Enterprises is handling the project by itself; the engineers and the architects report back to the experts and professionals at Thomas who are overseeing all aspects of the development.

Regarding the overall scope of the project, Anderson explains “We’re creating a lifestyle setting with somewhat of an urban feeling, but it will have a Texas flair. We’re very excited about the renderings and the architectural part of the process that we’re currently designing; we’re going to have a great project when it’s all said and done.”

Thomas has already signed deals with or currently is working with Best Buy, Bed Bath & Beyond, Cost Plus World Market, Target and DSW Shoes, Old Navy, Ross, JC Penney, Lowe’s Home Improvement Center, a ±100,000-square-foot health and fitness center and a Santikos Cinemas. One of the biggest draws for the entire project is Bass Pro Shops, which has plans for a 200,000-square-foot store near the center of the development. Bass Pro Shops often draws shoppers from 100 to 150 miles away, adding a new element to the consumer base. In effect, the retail component will have a regional draw to the traditional anchors like Target and Lowe’s, and it will also be a shopping destination from a super-regional standpoint. “From the anchors in the power center to the small shop niche in the lifestyle center, there really is something for everyone,” says Anderson. “I know a lot of our competitors say that, but at The Rim, we really believe that it’s true.”

“With 1.5 million square feet of retail on 700 acres, [The Rim] is a big project,” notes Anderson. “And over the next 4 to 7 years, the area will build out into a small town unto itself.” Texas Perspectives Inc. performed an analysis regarding The Rim’s economic impact on the surrounding area, which proved to be phenomenal. For example, the project expects to hold tenants and attractions that cumulatively produce annual revenues of $503.5 million, while employing 3,140 full- and part-time workers. In addition, the tax impact alone is being approximated at $145.8 million. Overall, the net impact of The Rim’s development will generate an annual increase of $90.9 million in total output, and $35.3 million in labor income. Total state and local taxes collected each year (including those directly associated with the project as well as ripple effects through the local economy) will approach $6 million. Clearly, the project represents not only a new shopping center and a tourist destination, but also, on a much larger scale, a tremendous boost to a growing economy.

Thomas Enterprises is constructing projects all over California, Florida and the Southeast. The company prides itself in developing new and innovative projects like The Rim, which, according to Anderson, are a very large part in the future of the industry. Therefore, Thomas believes very strongly in the demographics of San Antonio. With a population of more than 1.4 million, the city has become the seventh largest in the country, and it is often overlooked by developers. “The employment base has effected a very vibrant economy,” explains Anderson. “San Antonio’s fathers and mothers have done a tremendous job positioning themselves to retool the city for industry and for real growth, something that they will continue to realize for the next 20 years.”

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