Austin/ Real Estate & Development

Terrell Heights Plan Would Renovate 324 Units and Add Hundreds

AI Assisted Icon
Published on October 17, 2026
Terrell Heights Plan Would Renovate 324 Units and Add HundredsSunset Ridge of Alamo Heights — Approximate Site of Redevelopment Proposal
Google Street View

A plan to renovate and expand the 1950s-era Sunset Ridge of Alamo Heights complex in Terrell Heights has drawn neighborhood attention. Morningside Group, the Chicago-based firm behind the proposal, plans to renovate the existing 324 units and add hundreds more.

The 29-acre property at 116 Vanderheck St. was originally built in 1950 by developer E.J. Burke Jr. and architect Bartlett Cocke, who also designed Trinity University and the Witte Museum, to house military families returning to Fort Sam Houston after World War II, according to historical context reported by the San Antonio Express-News. Today it comprises 41 two-story buildings with one- and two-bedroom units ranging from 771 to 1,024 square feet, renting for between $1,175 and $1,600 a month, as Connect CRE reported. Morningside originally sought to rezone the site from I-1 and MF-33 to IDZ-3, a designation that could remove height, setback and parking limits, per Focus on San Antonio.

A Neighborhood Association Meeting

The October 13 meeting was organized by the Terrell Heights Neighborhood Association.

Traffic concerns have surfaced around the proposal.

What Existing Zoning Could Allow

Morningside's proposed IDZ-3 rezoning has prompted questions about what the site's existing zoning allows. Focus on San Antonio reported that current zoning limits the property to 33 units per lot, while association members believed expansion to 1,200 or 1,300 units could be possible under existing zoning.

A Regional Pattern of Pushback

Morningside acquired Sunset Ridge in 2022, according to the Express-News. The Terrell Heights fight echoes a dispute in neighboring Alamo Heights, where a vote on Embrey Partners' 296-unit Grove Place complex was scheduled for September 14, with the outcome unresolved ahead of the meeting.

Austin-Real Estate & Development