H-E-B acquires Dallas office campus for first city supermarket location

Charles C. Butt, CEO of H-E-B
Charles C. Butt, CEO of H-E-B - Official Website
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Beloved Texas grocer H-E-B has taken a significant step toward opening its first store in Dallas after securing zoning approval and acquiring land for the project. The company, headquartered in San Antonio, spent months seeking city approval amid concerns from local residents about potential traffic and flooding issues. The new store will be located at Hillcrest Road and LBJ Freeway.

H-E-B’s purchase included more than just the plot for the store itself; it acquired an entire office campus known as Commerce Plaza Hillcrest. This three-building property at 12800-12890 Hillcrest Road was previously owned by Gerald Haddock’s Silver Star Properties. According to a report from Cushman & Wakefield, Commerce Plaza Hillcrest spans 204,650 square feet across nearly 10 acres and was valued at $16.8 million in 2025.

The transaction is one of the largest office purchases in the Dallas region this year, but H-E-B faced a tougher challenge with zoning. Homeowner groups voiced opposition, arguing that the proposed supermarket would be “out of character” for the area. Despite these objections, H-E-B ultimately secured approval and expects to open its 127,000-square-foot store in 2028.

The sale also represents a key development for Silver Star Properties, a Houston-based real estate investment trust. The company has been selling off its Class B office properties as part of an effort to stabilize operations during internal turmoil involving former CEO Allen Hartman. In October 2023, Silver Star defaulted on a $259 million commercial mortgage-backed securities loan from Goldman Sachs. Hartman was removed from his position that same year following allegations of nepotism and mismanagement, which he denies.

Gerald Haddock led efforts to divest Silver Star’s portfolio of lower-tier office assets and shift focus to self-storage facilities—a transition marked by challenges including bankruptcy filings by subsidiaries and foreclosures on multiple properties backing substantial loans.

Meanwhile, H-E-B continued expanding its presence throughout North Texas by purchasing additional sites for future stores—including a recent acquisition of 20 acres in Sherman at FM 1417 and U.S. Route 75 earlier this year.

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