Restorations are underway at two large vacant buildings in Harlingen and the company behind those efforts sees new opportunities ahead for both facilities.
BH Properties, a Los Angeles-based company, focuses on purchasing and turning around buildings like the former Dillard’s at Valle Vista Mall and a warehouse formerly belonging to Valley Baptist Medical Center. The latter facility at 4405 Glasscock Avenue, just west of Ed Carey Drive, has been vacant for years. The Dillard’s site became available more recently when the large retailer ceased operations in Harlingen.
They are both large structures. The warehouse on Glasscock is a 86,640-square-foot facility. It was acquired by BH Properties in December 2021. The Dillard’s site has 103,000 square feet of space and was purchased by BH in October 2021. After their renovation, both facilities will be available for leasing for retailing, office space, warehousing or possibly a work space for telemarketing.
“We’re believers in the long-term growth the Valley offers,” said Scott Henry, the managing director of acquisitions for BH, who is based out of the company’s Dallas office. “We’ve been going to the Valley for 20 years.”
Welcome Sign
Work is underway at both BH properties in Harlingen.
Roofers were busy on a recent weekday morning at the warehouse on Glasscock. At the old Dillard’s, open doors offered a look of walls coming down. Debris piled up as renovation work gets going. Henry said the old Valley Baptist warehouse will likely have an industrial use. The Dillard’s site, he said, could be utilized for retail, high density office space or as a call center. There is also the possibility of it being a mixed-use facility.
Whatever the scenarios, the revitalization of these facilities come as welcome news in Harlingen. The former hospital system warehouse is largely out of prominent view, but Dillard’s closing was just the latest sign of Valle Vista’s decline as a retail center. The empty spaces at Valle Vista are common to malls around the country, Henry said.
“People will say a mall is dying, but really what’s happening is that it’s transitioning,” he said. “Malls are having a tough time everywhere.”
Henry said the Harlingen mall site is ideal in many respects. It has high visibility from a freeway. There’s also immediate access to major roadways and highways. The former Dillard’s building is a single floor facility, which BH prefers. It offers plenty of flexibility for a variety of uses. Another plus in acquiring both Harlingen buildings is the support BH receives from the city’s economic development corporation.
“The Harlingen EDC has been very accessible to us,” Henry said. “They’re really an extension of our marketing group. We couldn’t ask anymore of a community.”
Investing Along Border
BH Properties has taken a growing interest in border communities as it makes more purchases in Texas.
It has acquired properties in El Paso and Laredo. Previous to the Harlingen buys, BH owned and operated properties in Donna, Hidalgo and McAllen. The aim is always to purchase existing buildings and avoid being a ground-up developer, preferring to redesign built-out properties and then leasing them for uses that fit the local market.
“We’re nimble,” Henry said. “When we bring a property back that had been vacant, it benefits the community, creates new jobs, and for us as a company, it’s great to be part of that process.”