Brooks Moves to Halt ICE Leases at WatersEdge
The Brooks Development Authority has authorized a formal notice of default against a Preston Hollow Community Capital affiliate over federal immigration leases on San Antonio's South Side.
Updated on Nov. 10, 2026 in Immigration
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The Brooks Development Authority board authorized its legal counsel to issue a formal notice of default to a company affiliated with Preston Hollow Community Capital, which leases the WatersEdge office buildings. The authority says Preston Hollow negotiated 15-year ICE leases in one building without its approval, and gave the company 60 days to remedy the issue.
Why it matters
The dispute centers on whether federal immigration operations can occupy property developed under a lease that, according to Brooks, does not permit such use. Brooks leaders said they oppose the proposed use of the property, which places the authority in direct conflict with a federal tenant.
Federal records show ICE is spending $52.3 million on the two 15-year leases, which together cover about 75,000 square feet in one WatersEdge building. Preston Hollow has 60 days to remedy the issue, and it has not said whether it will do so.
The players
Brooks Development Authority
The Brooks Development Authority is the public entity overseeing redevelopment of the former Brooks Air Force Base on San Antonio's South Side.
Preston Hollow Community Capital
Preston Hollow Community Capital is a Dallas-based investment firm that has financed development projects across Texas.
The details
The Brooks board's notice of default targets a company affiliated with Preston Hollow Community Capital, which leases two office buildings called WatersEdge from the authority and financed the project. The authority says it did not negotiate or approve Preston Hollow's sublease with ICE, and that the lease does not permit using the space for federal immigration hearings and related operations.
Timeline
October 2025: Brooks awarded Preston Hollow's ICE leases.
October 2025: San Antonio filed a federal lawsuit against the U.S. Department of Homeland Security over an East Side detention center.
Mid-October 2025: The City Council voted 8-3 to explore delaying or preventing ICE leases.
January 2026: ICE bought a warehouse at 542 S.E. Loop 410 Access Road for a processing facility.
November 10, 2026: The Brooks board authorized a formal notice of default against the Preston Hollow affiliate.
Political Context
The Brooks action follows San Antonio's October 2025 federal lawsuit against the Department of Homeland Security over the East Side detention center. It shows the city pursuing local property and contract levers after the earlier legal challenge.
Residents on San Antonio's South Side may see changes to how the WatersEdge buildings are used if the default proceeds. The outcome will determine whether federal immigration operations stay in the Brooks development.
The takeaway
Local control over publicly developed land can become a lever in disputes over federal operations. Watch how the 60-day window plays out, since it will set the terms of the next phase.
What happens next
Preston Hollow has 60 days from the notice to remedy the issue, a deadline that falls in early January 2027.
Further reading
For more on the city's broader fight over federal immigration operations, see Immigration.
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