One of Austin's largest shopping centers is changing hands and getting an upgrade.

Southpark Meadows I and II, which are in South Austin at I-35 and Slaughter Lane, have been acquired by Big V Property Group of Charlotte, N.C. It is the fast-growing real estate investment firm's fifth purchase in Texas.

JLL Capital Markets arranged the financing and closed the purchase of Southpark Meadows, which is one of the leading regional shopping centers in Central Texas. The nearly 1-million-square-foot development includes anchor stores Walmart, JCPenny, Target and Hobby Lobby.

The seller was Blackstone, a global commercial real estate firm. Financial terms of the deal were not disclosed.

“We are very excited to be entering the Austin market with such a premium asset,” said Jeffrey Rosenberg, CEO of Big V Property Group. “We have some great plans for Southpark Meadows, and we are looking forward to working with the Austin area officials on improving and upgrading the center."

Rosenberg said Southpark Meadows is the fifth acquisition that Big V has purchased from Blackstone.

Big V's initial plans for Southpark Meadows include a new playground and activation area, an LED lighting installation, parking lot upgrades, landscaping improvements, painting, sanitation upgrades and a security office.

More:Signs of trouble: New reports show Texas economy is facing headwinds

“Our team is committed to enhancing the overall shopping experience at Southpark Meadows through significant capital improvements,” said Scott Cozzali, Big V vice-president of construction. “In addition to many exterior improvements, we are especially excited about the development of a new outdoor playground area that can serve the entire community.”

The 3-mile radius around Southpark Meadows has seen a 92% population increase since 2020, according to Big V. The firm said it was drawn to the deal by the strong demographic growth, the center's location and a tenant mix that includes PetSmart, Ulta, HomeGoods, JoAnn Fabric and Crafts, Rooms to Go and Marshall's.

Big V Properties operates more than 9 million square feet of retail space in 57 centers east of the Mississippi River, as well as in Texas, Arizona, and Colorado. Southpark Meadows is the second-largest property in Big V's portfolio.

Southpark Meadows operated as an outdoor music and events venue until 2000, hosting bands including U2 and the Police in the 1980s, and R.E.M and Pearl Jam in the 1990s. Country music legend Willie Nelson held a few Fourth of July events there, as well. The site was redeveloped as a shopping center by Endeavor Real Estate Group in the mid-2000s.

More:How Austin's retail sector has bounced back from a tough two years

Other retail centers sold this year

Southpark Meadows is one of a number of Austin shopping centers that have been sold to new owners this year.

In May, La Frontera Village in Round Rock was sold to New York-based DLC Management for an undisclosed price. The 534,566-square-foot center features anchor stores including Kohl's, Hobby Lobby and World Market.

In February, InvenTrust Properties Corp. of Illinois said it had acquired two retail centers in Austin for $189.3 million.

The deal included the Shops at Arbor Trails, a 357,000-square-foot-center anchored by Costco Wholesale and Whole Foods Market stores, and Escarpment Village, a 168,000-square-foot shopping center anchored by an H-E-B store.

During the worst of the coronavirus pandemic in 2020, a spate of retail closures resulted in a roughly 1.5% drop in the Austin occupancy rate, or about 770,000 square feet of newly vacant space, according to commercial real estate firm Weitzman.

But Austin's retail market has bounced back with a current occupancy rate of 95%. That ranks as Austin's highest occupancy in the past five years and makes it the strongest metro area in Texas.

One reason Austin's occupancy rate remained relatively stable over the past two years is the lack of new retail construction prior to the pandemic.

During the 1990s and into the early 2000s, Austin typically saw yearly construction in the millions of square feet, reaching as high as 4 million square feet annually. But new retail construction began declining in the mid 2000s and has not reached the 1 million square-foot threshold since 2016. In 2020, metro Austin added roughly 402,000 square feet of space in new and expanded retail projects.

This year is expected to continue the trend of limited construction, with Weitzman predicting few new projects aside from H-E-B's growth plans at sites including South Congress Avenue and Exposition Boulevard in West Austin.

This article originally appeared on Austin American-Statesman: Austin's Southpark Meadows retail center getting new owner, upgrade