River Walks First Food Hall

A new chapter is unfolding along the San Antonio River Walk as Escalera Capital announces plans to transform the La Villita Assembly Hall into a modern food hall. The project, set to debut by 2027, is expected to bring new life to the circular building at Villita and Presa streets while also impacting some beloved Fiesta San Antonio events.

Historic Venue Gets a Modern Twist

The La Villita Assembly Hall, which first opened in 1958, has hosted countless events, including Night in Old San Antonio (NIOSA), a cornerstone of Fiesta. The space is most famously home to the “sauerkraut bend” during NIOSA, making it a cherished spot for locals and visitors alike.

Escalera Capital, a San Antonio-based private equity firm, purchased the building in March 2024 from GrayStreet Capital. Partnering with Onset Hospitality, a group with experience in food halls across New York, Baltimore, Montreal, and Washington, D.C., the company plans to deliver a “dynamic food and beverage hub” that showcases chef-driven vendors, multiple bars, and cultural programming reflecting San Antonio’s diverse spirit.

Impact on Fiesta

While Fiesta organizers say they are excited about the renovations, the project may affect some programming. Julie Terrill, NIOSA’s 2026 chair, shared optimism about working with Escalera Capital but acknowledged that certain events may need to relocate.

“We are so supportive of Escalera Capital’s newest restoration plans for the La Villita Assembly building,” Terrill said. “If we cannot use the assembly building, we will be sure that the sauerkraut bend has a home elsewhere on the NIOSA grounds.”

Part of San Antonio’s Downtown Renaissance

The planned food hall is just one piece of a much larger wave of investment reshaping downtown San Antonio. Escalera Capital pointed to over $3.3 billion in public and private development underway, including Project Marvel, the proposed new San Antonio Spurs arena, and major infrastructure upgrades.

With these changes, the La Villita project aims to balance historic preservation with contemporary dining and entertainment, securing its place in San Antonio’s ongoing urban revival.

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