3 min read January 2024 — In an interview with Invest:, Thad Rutherford, president and CEO of planned-community developer Southstar, shared insights into the company’s transformative journey. Rutherford discussed its strategic decision to rebrand, highlighting the shift toward fewer but more impactful projects. Originating as a family business 23 years ago, the rebrand is positioned as a significant investment to effectively communicate its evolving story, he said.
What prompted the decision to rebrand as Southstar, and how has the evolution of the company over the past five years influenced this transformation?
We’ve been evolving as a company for about five years, driven by team changes, expertise, and opportunities. As community builders, we focus on impactful, complex, and large projects that make a bigger community impact. The rebrand reflects our shift to fewer, more significant projects. My father started this business 23 years ago, and we rebranded to better align with our mission as community builders, not solely ‘developers’. Our success in complex, long-term projects attracted investors. The rebrand is part of our ongoing investment in what we do and who we are.
What distinguishes Southstar in its approach to development, particularly in balancing financial success with making a positive impact on the community?
Southstar’s strength lies in strategically planning complex projects that generate regional benefits beyond the boundaries of our communities. Education, health, natural resources, connectivity, and mobility are just a few of the vital aspects we consider. We actively embrace making a positive impact as well as making a profit. We balance financial success with establishing consensus and earning trust among our owners, stakeholders and partners. Our daily focus centers on doing the right thing, knowing that success follows.
Is the “not in my backyard” mentality more pronounced in San Antonio compared to other markets?
That’s everywhere in some sense. I won’t be dramatic and say disenfranchised, but there are groups in San Antonio that have less. They have less equity in their developed lives than those in other parts of the city, and I think that’s where we get the most people who might say, maybe not “not in my backyard,” but if you’re going to develop in my neighborhood, are you building for my people, for my family, or are you just building something that you can sell, and then you’re going to move on? People in San Antonio want to know that ‘if you are building in my backyard, it should consider my culture and my values’. People want authenticity and they want the history and culture of the community to be considered. We’ve learned a lot about this in communities like Mission del Lago and VIDA. San Antonio is proud and authentic, and far more focused on inclusion than exclusion. You will always get people who live in a space and don’t want anyone in their backyard. Sometimes there’s an agree-to-disagree result, and sometimes we can help people to understand that the end result is often far better than they imagine.
How does Southstar prioritize and integrate trail-oriented development in community planning?
It’s a core tenet in all our current and future projects — residential and nonresidential alike. There are a lot of terms, like mobility and connectivity, that refer to it but at its core – moving people without a vehicle is crucial. It is central to land-planning today, on 4,000-acres or 40, we’re always considering how people navigate it without a vehicle. Mobility and micro-mobility are vital. That includes trails, paths, sidewalks for walking, biking, carts or scooters. It includes mobility hubs and facilities to support last mile deliveries without a greater impact on community infrastructure. But we’re not just adding trails; we’re connecting the elementary school, the home, the grocery store, the office — creating valuable, connected trails, not just miles of them. Mobility and micro-mobility, getting people out of cars and onto bikes, scooters or simply walking, is increasingly important for health, community connections and longer-term environmental considerations. How people move, and live in ways that are healthier, more economical and globally beneficial is an everyday consideration for us at Southstar.
What do you anticipate as the effects of New Braunfels being named a small, urbanized area and receiving federal funding?
The shift in designation poses a challenge for New Braunfels, which is now operating independently from the San Antonio transportation network. As an active member of the San Antonio Mobility Coalition (SAMCO), as well as the Alamo Area Metropolitan Planning Organization (AAMPO), I foresee the need for New Braunfels to develop mass transit options to accommodate its growth. It’s crucial to focus on creating transportation systems that support existing and desired growth, emphasizing smart planning and transit-oriented developments. While the city grapples with the balance of becoming a larger entity without losing its small-town authenticity, the existing infrastructure, such as I-35, provides a foundation. Despite concerns about running out of land, New Braunfels still has ample developable space, including promising projects like River Mill and the ADM Flour Mill plant. The key lies in utilizing available funding strategically to build transit systems for the community’s current and future needs.
What strategies does Southstar employ to ensure a successful mix of transitional uses and product segmentation in its projects?
Depending on the project size, having transitional uses is crucial. Higher density multifamily, from medium to lower, works best for residents and is most profitable. The right product mix creates varied neighborhoods that are more financially stable and successful. In larger acreage projects like Mayfair and VIDA, product segmentation reflects an ability to welcome a broader population, which supports community strength and momentum. We are looking at some really exciting products in both communities that are new, that provide improved transition from higher to lower densities while appealing to a varied consumer base. Each area’s price points inform a lot of the product’s mix, but we are excited to try newer products and complimenting land uses to create more dynamic communities. Despite interest rate challenges, we know we’re in the right place and growth will continue in San Antonio. A good mix of move-up and move-down options is key for sustained value. Our team prioritizes long-term value creation which is supported by a more diverse product mix. The market needs more housing in all categories, and more supply will enhance affordability.
For more information, please visit:
