KBS Realty Advisors has sold Fountainhead Tower, a 179,932-square-foot office building in San Antonio. A partnership organized and managed by SynerMark Properties Inc. acquired the asset.

Cushman & Wakefield represented KBS in the transaction. Greenberg Traurig worked as legal counsel on behalf of the seller.

The property previously traded in October 2006, when KBS acquired it from American Realty Advisors, CommercialEdge information shows.

Located at 8200 Interstate 10 W., the property is close to multiple retail destinations and a medical campus. Downtown San Antonio is 10 miles away, while the San Antonio International Airport is 7 miles east.

READ ALSO: What’s Defining Office in 2025?

The office vacancy rate in San Antonio was at 18.8 percent by the end of 2024, a CBRE report shows. Meanwhile, the market’s overall asking rates reached historic highs at $28.71 per square foot, marking a 3.3 percent increase year-over-year

Major Texas office markets continue to perform well thanks to strong population growth and corporate migration, KBS’ Giovanni Cordoves told Commercial Property Executive in an earlier interview.

An upgraded office tower

Completed in 1985, Fountainhead Tower rises 10 stories and has floorplates averaging 18,783 square feet. The building underwent renovations in 2017, which included a new conference center. Other amenities at the almost 6-acre property are four passenger elevators, a 627-space parking garage, an exterior courtyard garden with a golf putting green, a deli, outdoor seating areas and bike storage.

The Class A building’s tenant roster includes COMBS Consulting Group, U.S. Navy Officer Recruiting, South Texas Healthcare Alliance, Transwestern and Marcus & Millichap, according to CommercialEdge.

Cushman & Wakefield Executive Managing Director Todd Mills and Director Hunter Mills represented KBS in the transaction. The Greenberg Traurig team comprised attorneys Bruce Fischer, Howard Chu and Tina Ross, as well as paralegal Amanda Kennedy.

The post KBS Sells San Antonio Office Asset appeared first on Commercial Property Executive.

VanTrust Real Estate has signed a leading manufacturer to more than 100,000 square feet at Building A within the Cornerstone Commerce Center master-planned industrial development in northeast San Antonio.

CBRE arranged the transaction, with Joshua Aguilar, SIOR, representing the tenant and Rob Burlingame, senior vice president with the firm’s local industrial & logistics division, representing VanTrust.

VanTrust delivered two Class A buildings at Cornerstone Commerce Center in 2023. Located at 5442 Center Run Road, Building A features 51 dock doors, three drive-in doors and spec office space and includes 117,925 square feet remaining for lease. Building B, which features 40 dock doors and three drive-in doors, has 190,734 square feet available for lease.

READ ALSO: Manufacturing’s Comeback Gains Ground

VanTrust purchased an additional 33 acres for the second phase of the project, which can accommodate as much as 400,000 square feet.

“The industrial market is currently undersized based on population, which gives it huge growth potential long-term,” Bill Baumgardner, executive vice president for VanTrust, told Commercial Property Executive. “Construction costs are also lower, which gives the market an economic advantage over its competitors.”

San Antonio benefits from its access to a diverse workforce and proximity to Interstate-35, Interstate-10 and Loop 410.

According to CBRE, the second quarter marked the 31st consecutive quarter of positive net demand for the San Antonio industrial market. More than 4.9 million square feet of industrial product were underway, and 26.2 percent of the total pipeline was preleased. No doubt, it’s a hot market.

A manufacturing powerhouse

As more companies explore bringing operations closer to home, there will be further opportunities to strengthen Texas’ position as a manufacturing powerhouse, driving more demand for industrial assets.

Texas already comprises more than 9 percent of the nation’s total manufacturing GDP. According to JLL research, the four major Texas markets (Austin, Dallas-Fort Worth, Houston and San Antonio) accounted for nearly 39 percent of U.S. net absorption in the first half of 2024.

For the first time in two decades, Mexico became the top trading partner of the U.S. in 2023, a title it has long held with Texas, whose relationship included $272.3 billion in total trade last year, according to JLL research.

The Texas border alone accounted for 66 percent of the total 2023 truck crossings from Mexico, with Laredo being a standout, facilitating 36 percent of all truck crossings from Mexico into the U.S.

Nearshoring has gained significant traction after the 2020 events exposed vulnerabilities in the global supply chain, prompting companies to rethink their business models. This operational shift offers many benefits, including shorter lead times, enhanced quality control and more efficient logistics processes.

Companies from various sectors, including advanced manufacturing, automotive, aerospace, electronics and consumer goods, have announced recent plans to relocate or expand operations in Texas. In response to this surge of new enterprises, Brownsville is underway on a state-of-the-art advanced manufacturing training facility.

Last month, VanTrust Real Estate sold Interstate West’s Building A, a 637,868-square-foot industrial facility in Ellabell, Ga., near Savannah. Goldrich Kest acquired the 2023-completed asset. JLL represented the seller.

The facility, which was fully leased by three tenants at the time of closing, is part of the 515-acre Interstate West. The industrial park currently comprises three completed buildings totaling roughly 2.8 million square feet, and an underway development expected to exceed 2 million square feet.

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The acquisition brought the West Palm Beach-based private equity firm’s portfolio to more than 13 million square feet across 75 properties.

The deal is the second of 2024 for this buyer and seller. In a $42 million deal that closed in January, Sterling acquired SITE’s Marketplace at Highland Village, a 205,926-square-foot retail center located in the Dallas suburb of Highland Village, Texas.

Sterling’s current purchase drew on funds from Sterling Value Add Partners IV LP, an investment vehicle that includes $600 million of equity. SVAP IV, which closed in June, was oversubscribed by $100 million. Investors range from family offices and endowments to pension plans.  

Sterling’s scoop-ups

The largest property in Sterling’s newly acquired portfolio is Village at Stone Oak, a 476,371-square-foot power center in San Antonio. The property is anchored by a mix of clothing and pet accessory retailers, including HomeGoods, Ross, Petco, DSW and ULTA Beauty. An adjacent Super Target is a shadow anchor. Fronting U.S. Route 281, the property is 16 miles north of downtown San Antonio and within a 5-mile radius of 170,000 residents.

READ ALSO: FTI Experts’ Hub: To Buy or to Lease? That Is the Question

The second-largest property is Presidential Commons, a 264,271-square-foot grocery-anchored center in Snellville, Ga., an eastern suburb of Atlanta. According to CommercialEdge information, SITE purchased it in 2007. Anchored by Kroger and located at 1630 Scenic Highway North, the property also has Burlington, Five Below and Aaron’s on its roster. A population of approximately 193,000 is within 5 miles of its location.

Fairfax Towne Center is the smallest of the bunch, a 253,392-square-foot property located roughly 18 miles outside of Washington D.C., in Fairfax, Va. CommercialEdge data shows that SITE bought the asset for $60.2 million in 2021. Safeway is the grocery anchor, and the retail center also features a T.J. Maxx and a Regal Cinemas.

SITE’s sales binge

The $180.5 million portfolio deal with Sterling is the latest in SITE’s dispositions of open-air retail properties. Since the beginning of the third quarter, the REIT has sold 13 properties for a combined $714.3 million, according to Yahoo Finance.

Just this week, SITE sold Cypress Trace, a 280,000-square-foot grocery-anchored asset in Fort Myers, Fla., for more than $40 million. And in August, the REIT made another seven-figure-square-foot disposition, when it sold a three-property portfolio to CTO Realty Growth for $137.5 million.

The post Sterling Organization Buys 1 MSF Retail Portfolio appeared first on Commercial Property Executive.

Ziff Real Estate Partners has sold Castle Hills Market, a 97,682-square-foot neighborhood shopping center in San Antonio. Kobalt Investment Co. purchased the asset with the help of a $11.7 million loan provided by Woodforest National Bank, according to public records. JLL brokered the transaction.

ZRP purchased the shopping center back in 2020. Two years later, the property became subject to an $8.6 million loan provided by Randolph-Brooks Federal Credit Union, CommercialEdge data shows.

Back in April, ZRP entered the Arizona retail market with the purchase of Mercado at Scottsdale Ranch, a 118,751-square-foot shopping center in Scottsdale, Ariz., for $26.5 million. 

READ ALSO: Street Retail Surges Toward Full Recovery

Castle Hills Market came online in 1986 on some 6.7 acres. Since its purchase four years ago, the previous owner enhanced the center through physical property improvements, leasing strategies and tenant upgrades.

The tenant roster includes a diverse mix of retailers such as Bygones, Rainbow Language Academy, Allstate Insurance, Coke Management Group, Azro, Ballet San Antonio and Beast Fitness, among others.

Located at 2211 NW Military Highway, the property is in the heart of North Central San Antonio, in the Castle Hills neighborhood, and has access to interstates 10 and 410. The retail center is positioned near residential neighborhoods and the San Antonio International Airport.

The JLL team of Senior Director John Indelli, Director Whitney Snell and Senior Managing Directors Chris Gerard and Ryan West brokered the deal.

San Antonio’s retail market

Although there was a minor dip in net absorption in the second quarter, the retail market trends in San Antonio remain strong, suggesting a positive outlook. The metro’s vacancy rate clocked in at 4.0 percent—up 20 basis points from the previous quarter—while the average monthly rental rate reached $19.83 per square foot, according to a Partners Real Estate report.

San Antonio recorded 496,355 square feet in deliveries in the first half of 2024, while The North Central submarket had 55,662 square feet under construction and 9,880 square feet delivered in the second quarter.

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Westdale Properties America has received a $115 million senior loan for three Texas properties. The note encumbers two office buildings, The Epic I in Dallas and The Colonnade in San Antonio, along with The Woodmeade, a 304-unit multifamily property in Irving.

Reznik Paz Nevo Trusts provided the 5-year, fixed-rate financing, according to CommercialEdge information. Amir Giryes, the founder of Giryes Capital Group and managing partner of Pando Cos., arranged the transaction.

Office loan defaults and delinquencies are on the rise, according to a recent CommercialEdge report. More than $260 billion in office loans have matured recently or will mature by the end of 2026, affecting over 12,000 properties. Some $164.5 billion (62.6 percent) are in urban submarkets, while $187.7 billion (71.4 percent percent) involve Class A buildings. 

Two Texas office buildings

Totaling 282,873 square feet, The Epic I is at 2555 Pacific Ave. in an Opportunity Zone in Dallas’ Deep Ellum. Completed in 2019, the 16-story, Class A building includes 18,000 square feet of retail space and seven levels of parking. Amenities at the LEED Gold-certified property include a fitness center, a conference center, a roof deck, a café, five passenger elevators, on-site bike locker and controlled access.

Westdale broke ground on The Epic, a mixed-use property that also includes a residential tower and a boutique hotel, in 2017. The developer financed the project’s construction with a $160 million note also provided by Reznik Paz Nevo Trusts, CommercialEdge shows.

As for The Colonnade, Westdale purchased it back in 2012 from Griffin Partners. The 168,255-square-foot office building came online in 1983, featuring 19,260-square-foot floorplates, four passenger elevators, controlled access and on-site security. The Colonnade is located at 9901 Interstate 10 in San Antonio, near a variety of retail, lodging and dining options.

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Microsoft will more than double the size of a data center campus in Medina County, Texas, in the San Antonio metro, the San Antonio Business Journal reported based on a filing with the Texas Department of Licensing and Regulation.

The planned single-story, 244,000-square-foot building reportedly will offer space for up to five tenants. Construction is planned to begin in April 2026 with a tentative dollar value of $483 million, according to SABJ.

WSP USA, of New York, is designing the space. Construction is expected to finish in the first quarter of 2028.

READ ALSO: Are Microgrids the Answer to CRE’s Power Struggle?

Once underway, this will be the third data center Microsoft is developing at a site near Castroville, Texas. The first two buildings are expected to deliver later this quarter.

Other companies too are part of a data center boom in the metro, including CyrusOne, Vantage Data Centers, Amazon and CloudHQ.

Just last month, Stream Data Centers broke ground on its third project in the San Antonio region, a campus with up to five AI-ready buildings totaling 1.5 million square feet and supporting up to 200 MW of capacity. The first 300,000-square-foot building is scheduled to deliver in the second quarter of 2025.

Massive Midwest commitment

Unsurprisingly, Microsoft has been a steady and major player in data center development. One of its highest-profile projects has been a $1 billion, 215-acre data center campus in Mount Pleasant, Racine County, Wis., which broke ground in August 2023. Lead contractor Walsh Construction was scheduled to begin foundation work on the development’s four buildings that fall, with project completion expected in 2026.

This past May, however, Microsoft announced plans to expand the project with perhaps $2 billion or more of additional cloud and AI infrastructure capacity. Other aspects of the expansion involved partnerships with Gateway Technical College and the University of Wisconsin–Milwaukee and a partnership with National Grid build a new 250 MW solar project in the region.

The post Microsoft Boosts Data Center Capacity in San Antonio Region appeared first on Commercial Property Executive.

Big Sky Medical has acquired Sunset at Treeline, a 58,000-square-foot medical office building in San Antonio, with the aid of an acquisition loan issued by Bank of America, Bexar County records show. According to CommercialEdge, Casey Development was the previous owner of the Class A asset.

Development of the property was first announced in 2018, with GRG Architecture designing the building, which came online a year later.

The project initially landed an $11.7 million construction loan provided by American Momentum Bank, which later in 2020, originated another $17.2 million in financing. The property was also subject to a $19.7 million loan, provided in 2022 by First United Bank and Trust Co., CommercialEdge shows.

READ ALSO: Houston a Bright Spot Amid Slowing Medical Office Sector

Rising four stories, the facility features 17,460-square-foot floorplates, two passenger elevators, controlled access, on-site rooftop deck and includes 290 car parking spaces.

Sunset at Treeline is currently fully occupied and anchored by Baptist Health System Physicians and WellMed, a United Healthcare subsidiary. Medical services provided include OB/GYN, orthopedics and cardiology.

Located at 430 W. Sunset Road in the Alamo Heights neighborhood, Sunset at Treeline has access to U.S. Route 281 and Interstate 410. Downtown San Antonio is some 8 miles south of the property. Other medical providers in the surrounding area include CHRISTUS Santa Rosa Hospital, Molina Healthcare of Texas Regional Office and Village Square Medical Building, among others.

Big Sky Medical’s medical office building investments amount to $1.1 billion, boasting a portfolio totaling 3.1 million square feet in 17 states across the U.S.

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Configured to meet the increasing needs of hyperscalers in Texas and beyond, the $400 million project rises on 135 acres at the intersection of West Military Drive and Loop 1604. Each building in the San Antonio III campus is set to feature up to 40 MW and a proprietary design to serve customers’ near-term cloud and artificial intelligence infrastructure needs.

The design builds on Stream’s environmental commitment and also makes the AI-ready facilities even more efficient as customers move to liquid-cooled high density AI workloads. However, the data halls will be designed to accommodate both air and direct liquid-cooled IT infrastructure.

READ ALSO: Prologis, Blackstone Double Down on Data Centers, but Hurdles Remain

The new data center campus will also comprise an onsite 334 MW CPS Energy substation with access to important data center hubs in nearby Westover Hills, Texas, as well as in Texas Research Park. The substation will have a 2N configuration.

Other key features include:

• 120 MW of IT capacity available for new tenant deployments
• Use of closed loop chillers, resulting in minimal water use
• Secure campus configuration to support tenant requirements for buildings with individual secured perimeters or for the combination of lots on the parcel.

San Antonio expansion

The new campus will be located less than 5 miles from Stream’s San Antonio II data center complex which opened in 2014 at 9550 Westover Hills Blvd. The company entered the San Antonio market in July 2008, when it acquired a 150,000-square-foot, 30 MW facility at 5200 Rogers Road that was sold to a Fortune 10 company in 2011.

Stream Data Centers is the technical real estate affiliate of Stream Realty Partners. Since its 1999 inception, it has acquired, developed and managed more than 27 data center projects in major markets across the country including Dallas-Fort Worth, Houston, Phoenix and Chicago.

The post Stream Data Centers Breaks Ground on $400M Campus in San Antonio appeared first on Commercial Property Executive.

JCB is the world’s largest privately owned manufacturer of construction, agriculture and defense equipment. The San Antonio factory, which will be run by JCB North America, will make Loadall telescopic handlers and aerial access equipment, with production expected to begin in 2026.

Company officials said North America is the largest market for aerial access equipment in the world so it makes sense to build both products in the U.S. Reasons for selecting San Antonio included its central location, proximity to the supply chain and strong local labor force.

READ ALSO: How Will the Manufacturing Investment Boom Impact Industrial CRE?

Located on a 400-acre site on State Highway 16 in the city’s South Side, the plant will have the capacity to expand and build other products in the future and is expected to bring 1,500 jobs to the region.

JCB North America is headquartered in Savannah, Ga., where it opened its first U.S. manufacturing plant in 2001. The company, which will mark its 80th anniversary in 2025, has 22 factories—including 11 in the U.K., seven in India, and others in Brazil and China—and employs 19,000 people globally.

Local impact

JCB announced its intention to build a factory in San Antonio in October, although it did not have a site selected at that time. In April, the firm purchased two adjacent parcels located along 13610 State Highway 16 South. Partners Real Estate represented the sellers, SA2 Ltd. and Curtis Harry Mahala Revocable Trust. The resulting site is near the Toyota Motor Manufacturing Texas factory, which opened in 2006.

JCB expects to receive economic development incentives to build its manufacturing plant, including tax abatements and incentives worth $13.7 million from the city and a package from Bexar County that could reach $12 million, according to the San Antonio Report.

The factory is expected to have an estimated $30 billion economic impact on the region over the next 10 years, including suppliers that could locate nearby.

JCB’s development comes at the same time Toyota is planning a $500 million expansion at its facility, according to local media. While Toyota has not provided additional information on the planned expansion, the San Antonio Express-News reported in May that the automaker intends to construct a new building to the existing plant and add 411 jobs.

The post $500M Factory Breaks Ground in San Antonio appeared first on Commercial Property Executive.

A joint venture of TradeLane Properties Fund III and Phelan Development Co. has obtained $14 million in construction financing for Rittiman Crossroads, a 257,000-square-foot project in San Antonio. Byline Bank’s Commercial Real Estate Group provided the note.

This marks the 13th transaction Byline financed for TradeLane and its affiliates. Law firm Holland & Knight represented the lender in the transaction, while Franklin Law Group worked on behalf of the borrower. JLL Executive Vice President Roger Hill and Vice President Kyle Mueller are in charge of leasing.

READ ALSO: Top 5 Emerging Industrial Markets in 2024

The developer broke ground on the facility earlier this month and expects to bring it online the first quarter of next year. The rear-load warehouse will feature 32-foot clear heights, 260 car parking spaces, 36 trailer stalls and 49 dock-high loading doors. Additionally, the property will include four drive-in doors, a 60-foot speed bay, 130- to 250-foot truck courts and will be divisible up to 65,000 square feet.

Rittiman Crossroads is taking shape at 6357 Rittiman Road, less than 10 miles from San Antonio International Airport and the city’s downtown. Tenants will have easy access to interstates 10, 410 and 35.

San Antonio’s industrial sector remains steady

San Antonio’s industrial vacancy rate was 7.7 percent in March, up 20 basis points quarter-over-quarter, according to a CBRE report. The metro had 5.4 million square feet of space under construction during the same period. A total of 2.6 million square feet broke ground in the first quarter alone, with more than 84 percent being speculative development.

Last May, Koontz Corp. purchased 188 acres for the development of an eight-building, 2.8 million-square-foot campus. Dubbed Frontera Logistics Supersite, the project will consist of facilities ranging from 160,000 to 1.1 million square feet.

The post TradeLane, Phelan JV Lands Financing for 257 KSF Development appeared first on Commercial Property Executive.

Silver Star Properties REIT has borrowed $135 million to pay off creditors and liquidate a 4.2 million-square-foot legacy portfolio with office, retail and industrial assets as it repositions solely into the self storage sector.

Hartman SPE LLC, an indirect subsidiary which owns the legacy office, retail and industrial properties, and lenders Benefit Street Partners and RMWC closed on the exit facility on March 27th. The closing allows Hartman SPE to fund its Chapter 11 Plan of Reorganization, which was approved by the U.S. Bankruptcy Court for the District of Delaware on Feb. 26. The Chapter 11 plan provides for payment in full to all unsecured creditors and tenants and the full reinstatement of all interests without impairment. Hartman SPE filed for Chapter 11 bankruptcy in September.

BSP, a New York-based credit-focused alternative asset manager, provided a $120 million two-year floating-rate senior loan with no extension options. RMWC, a New York-based boutique private lender, provided a $15 million co-terminus second mortgage loan.

READ ALSO: Getting Into the Heads of Tenants

The portfolio totals 27 properties across multiple asset classes through the Dallas, Houston and San Antonio MSAs. There are 24 office assets in the portfolio as well as two retail properties and one industrial property. When all the sales are completed, Silver Star expects to have approximately $370 million in available funds.

A giant step forward

For Silver Star, which announced its plan to shift its investment focus to self storage last April, finalizing the loans was a major move.

Silver Star began that pivot with the April 2023 acquisition of Southern Star Self-Storage Investment Co., according to Multi-Housing News, the sister publication of Commercial Property Executive. Southern Star Self Storage owned a portfolio of nine self-storage properties totaling 2,526 units and 321,291 rentable square feet. At the time of acquisition, the company had two assets under contract, adding 208,220 rentable square feet to its portfolio. In December, MHN reported Silver Star had acquired two self-storage facilities in Houston totaling 115,126 rentable square feet from Harrison Street Real Estate Capital.

At the beginning of 2023, Houston-based Silver Star owned more than 40 office, retail and industrial properties with about 7 million square feet of space. By Dec. 31, the company owned 33 commercial properties comprising about 4.6 million square feet.

The company has been selling properties since last year, including Cooper Street Plaza, a four-building, 127,696-square-foor retail center in Arlington, Texas, in July through a 1031 tax-free exchange. It also sold several office properties including the 170,000-square-foot Westway One in Irving, Texas; the 139,600-square-foot Bent Tree Green, the 10-story North Central Plaza I and the 15-story Gateway Tower, all in North Dallas, according to The Real Deal.

The post Silver Star Secures $135M Loan Package in Shift to Self Storage appeared first on Commercial Property Executive.

KBS Realty Advisors has signed a 44,258-square-foot lease at City View, its 221,373-square-foot Class A office building in San Antonio. Partners Real Estate represented both the landlord and the new tenant, Wells Fargo. Avison Young also assisted on behalf of the tenant. The deal brought the 10-story office asset’s occupancy rate to 96 percent.

KBS Realty Advisors is the owner of the property since 2006, when it purchased the building from seller GE Asset Management in a $31 million deal, according to CommercialEdge. The tenant roster also includes Insperity, The Thompson Law Firm, Foresite Commercial Real Estate, Keller Williams and Express Information Systems, the same source reveals.

The new location will be used by multiple Wells Fargo business groups in 2024, while the bank’s Wealth Investment & Management group is scheduled to move in by the end of 2025, said Wells Fargo’s Advisors Managing Director for South Texas, John McCauley, in a prepared statement.

City View is located at 10999 Interstate 10 West and features 17,889-square-foot floor plates, four passenger elevators, 2,100 square feet of retail space and a five-level parking structure with 877 parking spots. Built in 1986, the mid-rise property sits on 8 acres, at the intersection of Interstate 10 and Huebner Road, 8 miles from San Antonio International Airport, 12 miles from downtown San Antonio and 20 miles from Universal City, Texas.

Significant deals in the area

Partners Real Estate’s Partner Lindsey Tucker negotiated on behalf of the landlord. The company’s Partner Steve Garza, together with Avison Young’s Principal Mark McGranahan represented the tenant.

Recent leasing deals in San Antonio include Bridgehead IT’s 15,280-square-foot commitment at Brookhollow Business Center, a 185,000-square-foot office campus. The owner of the three-building property is Worth & Associates. One of the largest leases in the metro’s Northeast submarket in the last 20 years consisted of Spectrum’s 87,597-square-foot renewal and expansion at Crosswinds Business Park’s Building B, owned by Briar Meads Capital. The deal, signed in late 2022, was arranged by Transwestern Real Estate Services.

The post KBS Signs 44 KSF Lease With Wells Fargo appeared first on Commercial Property Executive.

Brookhollow Business Center comprises 185,000 square feet across three buildings. Image courtesy of Worth & Associates

Worth & Associates has signed a 15,280-square-foot lease with Bridgehead IT at Brookhollow Business Center, three-building office campus totaling 185,000 square feet in San Antonio. JLL represented the tenant, while the landlord was represented in-house.

The new space will be home to more than 100 employees, with move-in scheduled for the first quarter of 2024. Following the deal, the business center had 15,000 square feet of space available for lease.

Located at 14220 Northbrook Drive in Northeast San Antonio, 1355 and 1077 Central Parkway South, the three-building property includes 16- to 18-foot clear heights, as well as dock- and grade-level loading doors and ample parking space.

The approximately 13-acre property is close to U.S. Route 281 and to multiple bus stations, being 5 miles from San Antonio International Airport, 12 miles from downtown San Antonio and within 46 miles of San Marcos, Texas. Other tenants at the property include RX Technology, Option Care Health, Shermco Industries and Stability Biologics, according to CommercialEdge.

JLL’s Executive Vice President Brian Kates negotiated on behalf of Bridgehead IT, while Worth & Associates was represented in-house by Vice President of Leasing Rob Gish.

Roughly a year ago, Spectrum signed one of the largest leases in San Antonio’s Northeast submarket in two decades. The communications firm inked a 87,597-square-foot renewal and expansion at Crosswinds Business Park’s Building B.

The post Worth & Associates Inks Lease at San Antonio Office Campus appeared first on Commercial Property Executive.

Four Oaks Distribution Center features 30-foot clear heights, 32 dock doors and a 147-foot truck court. Image courtesy of Rosewood Property Co.

Rosewood Property Co. has purchased Four Oaks Distribution Center, a 170,000-square-foot industrial property in Schertz, Texas. JLL helped secure $11 million in permanent financing on behalf of the buyer, provided by Lincoln Financial Group.

Rosewood and Phelan Bennett Development broke ground on the Four Oaks Distribution Center in 2021, with Phelan serving as the project developer and Rosewood as the equity partner. Calvin J. Coatsworth Architects designed the facility, along with R.C. Page Construction as the general contractor.

Rosewood purchased Phelan Bennett’s interest in the industrial building. The property is fully leased to two tenants, with OnTrac occupying approximately 104,000 square feet of space and MSI around 65,000 square feet. JLL’s Executive Vice President Roger Hill and Senior Vice President Kyle Mueller served as leasing brokers.

Completed last year, the distribution center features 30-foot clear heights, 32 dock doors and a 147-foot truck court. Four Oaks Distribution Center is located at 17670 Four Oaks Lane, in the Guadalupe County submarket. The 9.5-acre property is near Interstate 35, which provides direct access to downtown San Antonio.

The long-term outlook for industrial development remains promising, especially in the Southern U.S. A total of 31.3 million square feet of industrial space are underway in the region as of April, accounting for 3.2 percent of total stock, according to CommercialEdge data.

The post Rosewood Property Co. Buys San Antonio Industrial Asset appeared first on Commercial Property Executive.

Investcorp has expanded its U.S. industrial holdings with the acquisition of a 31-property portfolio totaling approximately 1.6 million square feet across five major markets for $216 million, Commercial Property Executive can first report. With this latest investment, the company’s national industrial footprint has grown to more than 600 buildings across 42 million square feet valued at approximately $4.8 billion.

The properties, which are 94 percent occupied, are located in the Atlanta, Boston, Central New Jersey, Allentown, Pa., and San Antonio, Texas, markets. The company notes the properties are in well-established locations with strong demand for infill industrial projects and markets that have major population bases, diversified economies and consistent rent growth.

Investcorp declined a request from CPE to identify the seller of the portfolio or provide further details on the assets acquired.

The firm’s latest acquisition is a testament to its confidence in tailwinds that are shaping the industrial sector, Michael Moriarty, principal & head of commercial acquisitions at Investcorp, said in a prepared statement. Moriarty added that opportunities for scale and diversification still remain in the industrial market.

Herb Myers, co-head of real estate for North America at Investcorp, stated that the continued expansion of e-commerce, coupled with the need for diversified supply chains, has created significant opportunities for investments in factories and warehouses across the U.S.

Investcorp’s focus on industrial investments

A global investment manager specializing in alternative investments including real estate, Investcorp has acquired more than 1,300 properties for a total value of approximately $25 billion since 1996. The firm’s U.S. real estate strategy focuses primarily on the industrial and residential sectors and its portfolio reflects that thesis, with 98 percent of assets held in those property types.

One of the firm’s larger industrial deals occurred in February 2022, when it acquired a portfolio of 64 assets in seven major U.S. metros, totaling about 5.6 million square feet, for $640 million. That transaction grew Investcorp’s U.S. industrial real estate holdings to more than 425 buildings across 32 million square feet valued at approximately $3.5 billion.

More recently, an affiliate of Investcorp partnered with BKM Capital Partners in March to acquire a seven-property, 740,000-square-foot light industrial portfolio in the Las Vegas market from Terry York Properties in an off-market transaction valued at approximately $157.8 million. The portfolio, which had 21 buildings across four locations, was 98 percent leased at the time of the sale.

The post EXCLUSIVE: Investcorp Pays $216M for Industrial Portfolio appeared first on Commercial Property Executive.

Triten Real Estate has completed Connection Park Logistics Center, a 490,083-square-foot, Class A distribution center in San Antonio. The developer sold the newly constructed asset to Capstar Real Estate Advisors, according to Bexar County public records. The same source reveals that Prime Finance provided a $34.1 million acquisition loan. JLL brokered the sale on behalf of both parties.

The cross-dock industrial asset is at 6851 Cal Turner Drive and includes 36-foot clear heights, ESFR sprinkler systems, a 3,000-square-foot office component, 84 dock doors, four ramped doors, 253 vehicle parking spots, 95 trailer parking spots and an additional 3-acre area for storage and trailer parking.

The 32-acre Connection Park Logistics Center is close to Interstate 10, 11 miles from downtown San Antonio and within 15 miles of San Antonio International Airport. Nearby large industrial users include Amazon’s 4 million-square-foot fulfillment center, Tesla’s 440,000-square-foot manufacturing facility and Dollar General’s 1 million-square-foot distribution center.

Recent projects in San Antonio

JLL’s team representing Triten Real Estate included Senior Managing Director Trent Agnew, Director Josh Villarreal, Senior Director Charlie Strauss and Analyst Greer Shetler, while the buyer was represented by Director Jarrod McCabe and Analyst Blake Jones.

According to a JLL report, the San Antonio industrial market saw year-to-date absorption reach 1.5 million square feet as of June. Meanwhile, the same source shows that completions during this period totaled 3.4 million square feet, while an additional 6.1 million square feet were under construction.

In August, Ackerman & Co. commenced construction on a two-building industrial project in the metro. Corporate Drive Industrial Complex is planned to comprise 511,000 square feet of Class A space and is scheduled for delivery in 2024.

Another large project was initiated by Koontz Corp. earlier this year—the developer purchased 188 acres and plans to develop Frontera Logistics Supersite, a 2.8 million-square-foot, eight-building campus.

The post Triten Completes and Sells San Antonio Distribution Center appeared first on Commercial Property Executive.

The building at 10120 Fischer Road was vacant at the time of the sale. Image courtesy of Avison Young

Harbor Capital has purchased a 198,000-square-foot Class A industrial building in Von Ormy, Texas. Avison Young negotiated on behalf of the buyer, while JLL represented the seller, Becknell Industrial.

The distribution and manufacturing facility was vacant at the time of the deal. Built in 2008, the property last changed hands in 2012, according to CommercialEdge. It includes 40-foot clear heights, a 7,000-square-foot office component, a drive-in door, 24 dock-high doors, a 130-foot truck court and 94 vehicle parking spots.

Rising on approximately 10 acres, the property is close to interstates 410 and 35. The plot is within a Foreign-Trade Zone, 2 miles of San Antonio Intermodal Terminal, 13 miles from San Antonio and within 21 miles of San Antonio International Airport. Additionally, the asset is located within Freeport Business Centre, home to Amazon CIG Logistics, North Park Toyota and United Rentals, among others.

JLL’s team of Senior Managing Director Trent Agnew, Director Josh Villarreal, and Analyst Greer Shetler represented the seller, while Avison Young’s team of Principal Stan Nowak and Analyst Sam Bush worked for the other party. Harbor Capital recently raised a fund to build out its Central Texas industrial portfolio, including looking out for strategic assets in the San Antonio Market market, said Nowak, in prepared remarks.

In late 2022, another company expanded significantly in San Antonio: Fort Capital picked up Starcrest Industrial Portfolio, a 465,650-square-foot, eight-building campus. With the acquisition, the buyer increased its industrial footprint to more than 6 million square feet.

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Terrell Plaza underwent a cosmetic renovation in 2012. Image courtesy of JLL Capital Markets

Property Commerce Divided Fund has purchased Terrell Plaza, a 107,884-square-foot retail center in San Antonio. SITE Centers Corp. sold the asset with the assistance of JLL. The property previously traded in 2007 for nearly $16.9 million, according to CommercialEdge data.

Anchored by Target, the retail center was 96 percent leased at the time of the current sale. The tenant roster includes Ross Dress for Less, Petco, Dollar Tree, Five Below, Popshelf, Sherwin Williams, Orange Leaf and Sports Clips, along with Whataburger and Valero as outparcels.

Managing Directors Ryan West and Chris Gerard, Senior Director John Indelli, Associate Whitney Snell and Analysts Ryan Olive and Clay Anderson led the JLL Retail Capital Market team working on behalf of the seller. In May, another JLL team represented SITE in the sale of a 90,945-square-foot retail center in Woodland Park, N.J.

Part of a robust retail market

Completed in 1986 and renovated in 2012, the shopping center occupies a 9.5-acre site at 1235 Austin Highway in East San Antonio. Terrel Plaza is near affluent neighborhoods such as Alamo Heights and Terrel Hills, serving households with the average income of $110,716 and a population of approximately 90,128 within a 3-mile radius. The property is adjacent to Fort Sam Houston, a U.S. army base which employs more than 27,000 people.

The San Antonio retail market witnessed a robust 2023 second quarter, the ninth consecutive quarter of positive net demand, according to a CBRE report. The vacancy rate clocked in at 4.1 percent, showing a minor 10-basis-point improvement over the quarter. Meanwhile, more than 783,000 square feet were in the pipeline as of June.

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The Corporate Drive Industrial Complex will feature two Class A distribution facilities. Image courtesy of Ackerman & Co.

Ackerman & Co. has broken ground on the Corporate Drive Industrial Complex, a two-building project in Selma, Texas. Set to total 511,000 square feet, the Class A distribution facilities are set to come online in 2024’s first quarter. The developer acquired the land in partnership with Baltisse US Inc.

Situated at 9388 Corporate Drive, the 32-are site is 17 miles northeast of downtown San Antonio, in the Texas Triangle. Interstate 35, the primary distribution corridor between San Antonio and Austin, is approximately 1 mile from the project.

“The Texas Triangle, particularly the corridor between San Antonio and Austin, is an important market for Ackerman & Co., and we have additional major projects planned,” Jeff Bryant, senior vice president & principal at Ackerman & Co., told Commercial Property Executive.

Building 1 will be 274,000 square feet while Building 2 is set to comprise 237,000 square feet. Both facilities are in the pad development phase. The property’s rear-loading buildings will feature 32-foot to 36-foot clear heights and a total of 59 trailer parking spaces and 647 car parking spaces.

Bryant told CPE that the leasing team is targeting a wide range of tenants, from distribution and logistics operators to light industrial and high-tech users. NAI Partners will be in charge of leasing and marketing the property.

San Antonio’s resilient market

The San Antonio industrial market is demonstrating resilience amid economic headwinds. In the first half of 2023, the area recorded 1.2 million square feet of positive absorption of industrial space, according to a Cushman & Wakefield report. Vacancy rates increased by 110 basis points since the first quarter—to 7.3 percent—partially due to several warehouse and distribution facility deliveries.

Ackerman & Co. recently completed another similar project in the market—The Doerr Lane Logistics Center was delivered in March and comprises 307,000 square feet of Class A distribution space. The park’s tenants include Quality Custom Distribution and MEI Rigging and Crating.

Koontz Corp. is developing another industrial property off of Interstate 35. The Frontera Logistics Supersite is set to be an eight-building project comprising 2.8 million square feet.

The post Ackerman & Co. Breaks Ground on 511 KSF San Antonio Industrial Park appeared first on Commercial Property Executive.

Greenway Park. Image courtesy of Vitalis

Advenir has acquired Greenway Park, a 109,000-square-foot medical office and clinical research facility in San Antonio. Gemini Rosemont sold the Class B property which traded for $179 per square foot, CommercialEdge data shows. The facility was fully leased at the time of the sale.

The buyer financed the purchase with help from a $30 million acquisition loan, provided by Bank of America, according to the same source. Vitalis brokered the transaction.

Completed in 1983, the three-story building underwent cosmetic renovations in 2002. The 5-acre property includes 374 parking spaces at a ratio of 3.4 per 1,000 square feet, controlled access and two passenger elevators.

Worldwide Clinical is anchoring the building and has been doing so since 2005, occupies 85 percent of the space and has invested $5 million in the facility. The research organization includes 200 beds for overnight studies, a cGMP pharmacy, sample processing lab and Class 10,000 clean room. WellMed is occupying the remaining space and has made a capital investment as well in order to accommodate 12 providers at the clinic.

Greenway Park is next to Interstate 410 at 2455 SE Loop 410, 11 miles from downtown San Antonio. Medical providers in the surrounding area include Brident Dental & Orthodontics, Webb Eye Associates, Medico MD Medical and Dental and Dixon Health & Wellness Center, among others.

Health-care investment in Texas markets

Several companies made investments in the Texas health-care real estate sector since the beginning of the year. In early 2023, Big Sky Medical made its first purchase in El Paso, Texas, with the acquisition of Texas Tech Physicians of El Paso at Transmountain, a 110,465-rentable-square-foot medical office building. Around that same time, Montecito Medical continued to expand, adding a 31,247-square-foot medical facility in Plano, Texas, to its Dallas-Fort Worth portfolio.

In the second quarter of 2023, FI Real Estate Capital Management bought a 49,320-square-foot medical office building in Mission, Texas. MedProperties Realty Advisors also purchased the newly built Medical Center of Tomball through its Fund IV.

Last month, Lincoln Property Co., in partnership with Virtus Real Estate Capital, acquired Methodist Southlake Medical Office Building, an 82,238-square-foot facility in Southlake, Texas.

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Rendering of the Frontera Logistics Supersite. Image courtesy of Koontz Corp.

Koontz Corp. has purchased an 11-parcel, 188-acre lot for the development of Frontera Logistics Supersite, an eight-building, 2.8 million-square-foot industrial campus located off Interstate 35 in San Antonio.

Koontz acquired the land assemblage—one of the largest and last remaining infill sites inside the Loop 410 corridor—from 26 different owners. Carl Olson, president of Olson Properties, represented the sellers.

“An added advantage of this site is its direct access and proximity to Mexico via Interstate 35 and the port of Laredo. Our industry is seeing more nearshoring opportunities for manufacturing and assembly in Mexico which is a direct benefit to the Texas Triangle’s ability to compete not only regionally but globally,” Koontz Corp. President & CEO Bart Koontz told Commercial Property Executive.

READ ALSO: Industrial Sector Fundamentals Remain Solid

Formerly home to cornfields, the Frontera Logistics site was rezoned for industrial use. Beaty Palmer Architects designed the campus’ preliminary layout, while Vickrey & Associates is providing engineering services. Partners Real Estate will handle leasing and sales at the property.

Architectural drawing of Frontera Logistics Supersite. Image courtesy of Koontz Corp.

At full build-out, Frontera Logistics Supersite will tentatively include eight facilities ranging from 160,000 to 1.1 million square feet, catering to manufacturing, distribution and warehousing companies. The development is anticipated to create nearly 2,000 jobs, San Antonio City Council Member Dr. Adriana Rocha Garcia said in prepared remarks.

The site’s location, in the western portion of the Texas Triangle, gives it direct access to the four-metro megaregion’s three highways. For Koontz, the property’s key advantages include direct distribution access to the Triangle’s population and its close proximity to assembly capabilities across the Southern border, in addition to the widespread reshoring of manufacturing capabilities in the U.S.

San Antonio’s industrial market carries on

San Antonio’s industrial market is emblematic of the sector’s prosperity across the nation. According to a first quarter 2023 report from JLL, the metro had 6.7 million square feet of feet of space under construction as of March, close behind the previous quarter’s pipeline of 6.9 million square feet. Net absorption accounted for 1.1 million square feet.

One of the metro’s current industrial developments is a five-building, 689,215-square-foot complex taking shape directly across from San Antonio International Airport. Stream Realty Partners broke ground on the project in the third quarter of last year, with completion estimated this August.

The post Koontz Corp. to Develop 2.8 MSF San Antonio Industrial Park appeared first on Commercial Property Executive.

Northwoods Shopping Center. Image courtesy of CIM Group

CIM Group has signed two leases, totaling approximately 40,000 square feet, with department store chain Nordstrom Rack and fast-food restaurant chain Chick-fil-A at its 443,148-square-foot Northwoods Shopping Center in San Antonio. Barshop & Oles brokered the lease on behalf of the landlord, according to a spokesperson representing CIM Group.

In the last quarter of 2022, retail markets showed significant strength due to persistent demand, resulting in shopping centers’ vacancy rates dropping to their lowest level since 2007, according to a Cushman & Wakefield report. The San Antonio market registered a 5.4 percent vacancy rate.

Despite low vacancy rates, there was a deceleration in leasing activity in the fourth quarter of last year, with a total national volume of 21.7 million square feet, marking the lowest volume recorded since the second quarter of 2020, the above-quoted report also reveals.

Upcoming store openings at the property

The new Chick-fil-A restaurant is being built on a 1.5-acre parcel at Northwoods Shopping Center, in a 4,995-square-foot building situated across the parking lot from Nordstrom Rack.

Nordstrom Rack has secured a lease agreement for 34,966 square feet in close proximity to the existing H-E-B supermarket. The company is expected to inaugurate its store at the shopping center in September 2023, as part of a long-term commitment to the location.

The two firms will join the property’s roster of 54 stores, including retail, services, dining and entertainment providers. Barnes & Noble, Marshall’s, Ulta Beauty, Old Navy, Chuy’s, Fish City Grill, La Madeleine French Bakery & Café, Red Robin and Regal Cinemas also have leases at the property.

Located 1734 N. Loop 1604 E., at the southeast corner of U.S. Highway 281 North and Loop 1604 intersection, Northwoods Shopping Center serves a community comprising single-family neighborhoods, apartments, offices and hotels.

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Building 2 at Selma Industrial Park. Image courtesy of Partners Real Estate

Robinson Weeks Partners and Titan Development have landed a new tenant at Selma Industrial Park Building 2 in Selma, Texas. Westport Axle signed a 115,000-square-foot lease, bringing the property to full occupancy. Selma Industrial Park totals more than 2.5 million square feet across nearly 200 acres.

John Colglazier Jr., Carlos Marquez and Kyle Kennan with Partners Real Estate represented the landlord, while Jonathan Dandurand with Burr & Temkin assisted the tenant in the negotiations.

The 305,760-square-foot Building 2 came online in 2022 and features 36-foot clear heights, 74 dock-high doors, four drive-in ramps, an ESFR sprinkler system and 329 parking spaces. The property has two other tenants: Made in Cookware, which signed a 70,000-square-foot lease, and Berlin Packaging, occupying 120,000 square feet.

Located at 17654 Ben E. Keith Way, the property is 20 miles from San Antonio, 57 miles from Austin and has access to Interstate 35. San Antonio International Airport is 15 miles southwest. Other companies in the surrounding area include Amazon, FedEx, Ace Mart and SLG Logistics, among others.

The developers broke ground on Selma 3 in November 2022. The 429,633-square-foot development is slated for completion by August 2023.

Titan Development’s Texas projects

Last year, Titan Development continued its industrial projects around Austin, Texas. The company expanded Titan Innovation Business Park in Hutto, Texas, as it broke ground on a 110,000-square-foot facility in March.

In June, Titan embarked on a megaproject in the same area. The developer acquired a 188-acre site for the construction of Hutto Mega TechCenter, an industrial park totaling 2.6 million square feet, near the $17 billion Samsung semiconductor plant.

Near the end of 2022, the company had another industrial project underway, the first phase of Lockhart 130 Industrial Park. Completion is expected in the fourth quarter of 2023.

The post Titan, Robinson Weeks Land Tenant at San Antonio Campus appeared first on Commercial Property Executive.

Starcrest Portfolio. Image courtesy of Fort Capital

Fort Capital has added to its San Antonio footprint with the acquisition of the Starcrest Industrial Portfolio, a 465,648-square-foot campus, bringing its U.S. industrial holdings to more than 6 million square feet. The seller was Forester Properties, according to CommercialEdge.

The same data provider shows that more than 3.3 million square feet of industrial space have changed hands in San Antonio since the beginning of the year. In one of the more significant transactions, KKR purchased a four-building, 576,047-square-foot Class A property from Hines.

A Class B property in the Airport submarket

Also known as Blossom Business Center, the campus came online in 1983. The eight-building asset comprises Class B light industrial facilities with 14- and 18-foot clear heights, grade-level and dock-high loading doors. Cavender & Hill Properties Vice President Thomas Bragg handles leasing at the property that was 89 percent leased at the time of sale.

Located at 12005-12095 Starcrest Drive, the campus is roughly 5 miles from San Antonio International Airport and 14 miles north of downtown San Antonio. Its proximity to interstates 10, 35 and 410 provides convenient access to Austin, Houston Ship Channel or Port of Corpus Christi, Texas.

The San Antonio industrial market shows strong fundamentals and, with Tesla and Apple entering the Austin-San Antonio corridor, the metro has the potential of becoming a strong manufacturing hub, Fort Capital CEO & President Jason Baxter said in prepared remarks.

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Rendering of Core5 Logistics Center. Image courtesy of Partners Real Estate

Core5 Industrial Partners, in a joint venture with MBK Industrial Properties, has broken ground on Core5 Logistics Center in Schertz, Texas. This is Core5 and MBK’s first industrial project in San Antonio.

The industrial park is being developed in two phases, with phase I slated for completion by November 2023. Carlos Marquez and Brett Lum of Partners Real Estate are the exclusive leasing agents for the property, which is offered for sale and lease.

According to a statement offered to the San Antonio Business Journal, Liam Logan, Core5 director of investments, mentioned that the costs for this project will be financed through equity from its Japanese parent company, Kajima Corp. The same source shows that the construction site was purchased for $5.7 million.

Phase I of the industrial complex consists of two buildings, totaling 1,000,080 square feet, with cross-dock and rear-load configurations. The other two buildings, still in the prospective stages according to CommercialEdge data, will offer a total of 788,940 square feet of cross-dock and single-loaded space configuration. Upon completion, the complex will feature 40-foot clear height, ESFR sprinkler system, truck courts, drive-in ramps and car parking with dedicated entrances.

Core5 Logistics Center will rise at 4703 Scenic Lake, just 20 miles from San Antonio. The location provides access to other major cities in the state, such as Austin via Texas Toll 130, Houston via Interstate 10, and Dallas via Interstate 35.

Growing interest for San Antonio

Liam Logan said in prepared remarks that San Antonio’s vacancy rate of 3.5 percent, in a market that attracts tenant interest, is a strong fundamental that contributes to the need for more industrial development in the area.

Several industrial projects in San Antonio were announced this year, including the development of Cornerstone Commerce Center, as VanTrust Real Estate announced the plans for the first phase of the industrial campus back in April.

In May, Koontz Corp. broke ground on the first phase of Westport Industrial Park, a 374,400-square-foot speculative development. The first two buildings are slated for delivery in early 2023. Lastly, Stream Realty Partners also started the construction of Interpark Logistics Center back in August. The park will encompass five buildings, totaling 689,215 square feet.

The post Core5 JV Breaks Ground on 1.8 MSF Project appeared first on Commercial Property Executive.

Rendering of Selma 3. Image courtesy of Robinson Weeks Partners

Robinson Weeks Partners and Titan Development have broken ground on Selma 3, the third building with the 185-acre Titan Industrial Park in Selma, Texas.

The 429,633-square-foot building, expected to be completed in the third quarter of 2023, received $5 million in construction financing from BOK Financial, CommercialEdge data shows.

The partnership broke ground on the industrial park’s Selma 2 building in 2021. The 305,760-square-foot facility opened in July of this year. Two tenants have recently signed leasing agreements at Selma 2: Made in Cookware, which will occupy 70,000 square feet; as well as Berlin Packaging, which will occupy 120,000 square feet. Selma 2 still has about 115,000 square feet of available space.

Partner John Colglazier Jr. of NAI Partners represented the owners in both transactions. Made in Cookware was represented by Colliers International’s Senior Vice President Travis Hick and Vice President Chase Clancy, while Cushman & Wakefield’s Managing Director Andy Heyman and Director Alex Brody worked on behalf of Berlin Packaging.

San Antonio’s industrial sector

Selma 3 is located at 17654 Ben E. Keith Way. The speculative industrial property will offer clerestory windows, 36-foot clear height, four drive-in ramps, 98 dock doors, 232 parking spots and 119 trailer parking spots. The new facility is planned to accommodate a wide variety of 3PL and e-commerce users. The industrial project is situated on a 25-acre lot, close to Interstate 35, 15 miles from San Antonio International Airport and within 19 miles of San Antonio.

According to recent CommercialEdge data, Texas remains the Southwest’s largest hub for industrial construction, with San Antonio placing fifth among the state’s major markets, with nearly 4 million square feet under construction, representing 3.4 percent of total stock as of June. One of the market’s biggest projects under construction is VanTrust Real Estate’s Cornerstone Commerce Center, a two-building industrial project planned to bring nearly 1 million square feet of space in the area.

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Crosswinds Business Park, Building B

Communications firm Spectrum has signed a lease renewal and expansion at Crosswinds Business Park’s Building B, in the Northeast submarket of San Antonio. The 87,597-square-foot commitment brought the office property, owned by Briar Meads Capital, to 100 percent occupancy.

The deal is one of the largest lease transactions completed in the Northeast submarket in 20 years. Transwestern Real Estate Services Vice President Charlie Weil and Vice President Luis Garza worked on behalf of the landlord.

CommercialEdge data shows that Spectrum previously occupied 69,000 square feet at the property. The 94,599-square-foot asset came online in 1999 at 11826 Tech Com Way. The LEED Silver-certified building is some 13 miles from downtown San Antonio, just north of Interstate 35.

READ ALSO: What Corporate America’s New Office Looks Like

According to a recent JLL office report, the San Antonio market improved in the third quarter of this year after seeing some 500,000 square feet of occupancy loss in the first half of 2022. The metro witnessed nearly 52,000 square feet of positive absorption in Q3; however, the vacancy rate remained high at 17.9 percent.

In one of the more significant deals of the year, Morgan Stanley and Embrey Partners signed new leases, totaling 53,000 square feet, at a newly completed development. The property is north of Midtown, one of San Antonio’s most active submarkets with more than 73,000 square feet of occupancy gains in 2022, JLL research shows.

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The new Continental facility in New Braunfels, Texas. Image courtesy of Continental

Continental, which manufactures parts for autonomous driving systems, has completed a $110 million, 215,000-square-foot facility in New Braunfels, Texas. The new plant is located about 15 miles from another Continental facility in Seguin, Texas.

The Germany-based company—which also has facilities in Auburn Hills, Mich., and Santa Barbara, Calif.—held a ribbon-cutting ceremony Tuesday to mark the end of the construction process that began in 2020, but was delayed by the pandemic. More than 150 state and local officials as well as community members attended the event and toured the new plant, which has already begun operations. The company expects to ramp up production, add more workers in 2023 and reach about 580 employees over four years.

Located on 48 acres off Interstate 35, the plant is part of Continental’s Autonomous Mobility business area and will manufacture radars, sensors and other products for advanced driver assistance systems (ADAS) that are the foundation of assisted and automated driving.

READ ALSO: Industrial Sector Embraces Reshoring Initiatives

With the new location, Continental is expanding its R&D and manufacturing capabilities in the U.S. The 320,000-square-foot Seguin plant operates under the name Vitesco Technology and employs more than 1,500 people in the company’s powertrain division.

Frank Petznick, member of the firm’s Automotive Board and head of Business Area Autonomous Mobility, said in a prepared statement that Continental has been researching and developing ADAS systems for more than 25 years. Petznick added that the new plant will play a critical role as the company grows its ADAS business in North America and will also support its goal of vision zero—zero traffic fatalities, injuries and crashes on roadways.

Local incentives

Continental’s new automotive manufacturing location in New Braunfels, Texas. Image courtesy of Continental

Continental has received about $5.5 million in incentives for the New Braunfels plant, according to local media reports. Comal County commissioners and New Braunfels City Council members approved separate incentive packages in 2019, including 10-year property tax rebates if certain employment and wage levels are met by the company. The New Braunfels Economic Development Corp., which is funded by a designated sales tax, provided money to the company for infrastructure, land acquisition and sewer improvements.

At Tuesday’s ceremony, Continental donated a total of $20,000 to the New Braunfels and Comal Independent school districts to support the Career and Technical Education Manufacturing programs offered by the districts. New Braunfels Mayor Rusty Brockman said in prepared remarks the city is excited to see Continental grow in the community and create well-paying jobs in engineering and manufacturing.

Booming industrial market

New Braunfels is located midway between San Antonio and Austin, and is part of the San Antonio industrial market. The overall vacancy in the market is 7.5 percent. In New Braunfels, the manufacturing vacancy is 2.3 percent and overall industrial vacancy, including warehouse and distribution, is 1.9 percent, according to a JLL report for the second quarter. The San Antonio industrial market has experienced 11 quarters of positive absorption as of the second quarter, and that streak was expected to continue through the third quarter due to a steady development pipeline, rent growth and users preparing to occupy, JLL also reported.

A CBRE report on emerging industrial markets released in the spring noted the Texas I-35 industrial corridor continues to grow at a rapid pace. The report stated New Braunfels is among the fastest-growing cities in the country, attracting many manufacturing and distribution users. With the influx of new residents and company relocations, robust industrial activity is expected to continue.

The post $110M Self-Driving Systems Plant Opens in Texas appeared first on Commercial Property Executive.

Interpark Logistics Center Building 2. Image courtesy of Stream Realty Partners.

Stream Realty Partners has started construction on Interpark Logistics Center, a five-building, 689,215-square-foot industrial complex in San Antonio. Stream Executive Vice President Michael Kent and Vice President Payton Ryan will oversee the leasing of the development following its completion in August 2023. The company’s San Antonio branch will also provide property management services for the new project.

Interpark Logistics Center is Stream’s second San Antonio commercial project launched this year, following the groundbreaking of OneFiftyOne Medical Office, a 60,000-quare-foot medical development.

The Class A office and warehouse buildings will range in size from 119,000 to 155,000 square feet, with 24 to 40 dock doors and 32-foot clear heights. The complex will also offer a total of 820 car parking spaces and 125 trailer parking spots. The development is situated between U.S. Highway 281 and Wurzbach Parkway, directly across from San Antonio International Airport and within 12 miles of Downtown San Antonio for quick shipping and fulfillment.

Texas top market

Despite a nationwide shortage of land and supply chain woes, the industrial sector is experiencing solid growth. Texas remains the largest hub for industrial construction in the Southwest, with San Antonio placing fifth among the state’s markets, with 3.9 million square feet of space underway and 2.7 million square feet delivered as of June, according to CommercialEdge data.

Putting these trends in context, Kent told Commercial Property Executive that “San Antonio has a growing list of industrial projects under construction in response to record low vacancy. … Interpark’s location at U.S. 281 and Wurzbach Parkway provides the type of infill opportunity that is difficult to replicate.”

Other Stream Realty undertakings in Texas include 20 East at 12955 FM 2932, a 3.4-million-square foot industrial development in Mesquite, and the Portside Logistics Center, a 1-million-square-foot, two-building development in Baytown.

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Image by Peter H via Pixabay

During the height of the pandemic, e-commerce had a remarkable run, becoming a cornerstone for the economy and households in need of safe shopping. The industrial construction scene has experienced remarkable expansion, which prompted developers to adhere to green building practices and energy-efficient features. An illustrative example is the partnership between Stream Realty Partners and Catalyze.

The national in-place average rent rose 4.7 percent year-over-year through April to $6.5 per square foot, while the vacancy rate stood at 4.7 percent in May, according to CommercialEdge data. Overall, in late June, the industrial market totaled nearly 17.3 billion square feet of industrial space, while nearly 700 million square feet of space was under construction. The absolute leader of all markets was Dallas, followed by Phoenix (43 million square feet underway) and the Inland Empire (37 million square feet).

In the ranking below, we will be focusing on the top five markets for industrial construction in the Southwest, based on their construction pipelines. All five metros are in Texas, the markets combined will expand the national industrial stock by 100 million square feet.

1. Dallas

DFW has one of the largest industrial stocks in the country and the largest industrial construction pipeline, not just in the Southwest, but in the U.S. In late June, the metro had more than 61 million square feet underway, the equivalent of 7.2 percent of its total stock, which is slightly above 840 million square feet.

In 2022 through June, developers delivered nearly 15 million square feet and, if the pace of deliveries remains constant, this year’s volume is on track to outperform 2021 (24.7 million square feet, or 3.1 percent of stock) and at least match 2020 (28.6 million square feet, or 3.7 percent of stock).

Notable projects under construction include Stream Realty Partners’ 3.4-million-square-foot development in Mesquite, east of Dallas, and Texas Instruments’ 4.7-million-square-foot chip manufacturing plant in Sherman.

2. Houston

Houston occupies the second position in this ranking with more than 21.2 million square feet of industrial space under construction. The figure equates to 3.9 percent of the total stock, which increased to 547.8 million square feet.

In the first half of 2022, nearly 4.9 million square feet of industrial space came online, 0.9% of total stock. Although it is too early to say how much of the under-construction inventory will be completed by year-end, the volumes of the previous years have been similar and may end up leading this year’s volume: in 2021, 19.6 million square feet of industrial space, or 3.8 percent of total stock, was delivered, while in 2020, 19.7 million square feet, or 3.9 percent of total stock, was added.

Notable industrial developments in Houston include the 507,000-square-foot warehouse for Article, a Canada-based online furniture company, and TGS Cedar Port Industrial Park in Baytown, Texas. At more than 15,000 acres, it is the largest master-planned, rail-and-barge-served industrial park in the U.S.

3. Austin

The sustained performance of the industrial market adds to Austin’s already notorious versatility. As of June, the Texas capital had 8.3 million square feet of industrial space under construction, which with its 114.5 million-square-foot market represents 7.2 percent of total stock.

In 2022 through June, more than 6.9 million square feet came online, already above the annual deliveries of 2021 (6.7 million square feet, or 6.7 percent of total stock) and 2020 (2.1 million square feet, or 2.1 percent of total stock).

Although Austin is one of the metros where Amazon is pausing development plans indefinitely for a distribution center in Round Rock, the metro still has a great impact on the industrial market. Projects like Samsung’s semiconductor plant in Taylor and Tesla’s Giga Texas have been attracting more industrial development. Recently, Titan Development announced the 2.6 million-square-foot Hutto Mega TechCenter, and Alliance Industrial Co. is starting construction on Kyle/35 Logistics Park, a 1.4 million-square-foot park.

Data provided by CommercialEdge

4. El Paso

Nestled between New Mexico and Mexico, El Paso shows increasing industrial construction activity. In mid-2022, the metro had some 5.7 million square feet of industrial space under construction, the equivalent of 10.9 percent of stock—the largest percentage of stock in this ranking. Still, the metro’s industrial inventory is the smallest of the metros on this list, at just 52.7 million square feet.

No projects were completed in 2022 through June, but El Paso saw incredible volume expansion over the past two years. Nearly 4 million square feet was delivered in 2021, or 8.1 percent of total stock, from 234,000 square feet (just 0.5 percent of total stock) in 2020.

5. San Antonio

With nearly 4 million square feet under construction, San Antonio rounds out the top five. The figure is the equivalent of 3.4 percent of total stock, which currently totals more than 116 million square feet.

By June, developers had delivered more than 2.7 million square feet, already close to the 3.1 million square feet of added volume in 2021 (2.8 percent of stock), and half of 2020’s volume, when the industrial inventory was expanded by 4.5 million square feet (4.3 percent of total stock).

Among the projects currently under construction is Cornerstone Commerce Center, VanTrust Real Estate’s 1 million-square-foot speculative development.

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Cornerstone Commerce Center Phase I. Image courtesy of VanTrust Real Estate

Just days after announcing plans to construct nearly 1 million square feet of industrial space at two separate projects, VanTrust Real Estate has acquired one of the last sites in the Cornerstone industrial area in San Antonio, and is scheduled to break ground on the first phase of a 60-acre industrial center in July. The project will deliver 413,173 square feet of speculative space in two buildings.

Phase I is slated for completion in July 2023. VanTrust expects to construct four additional buildings totaling more than 600,000 square feet in Phase II to meet growing demand.

READ ALSO: Industrial Lease Trends to Consider in 2022

Cornerstone Commerce Center Phase I. Image courtesy of VanTrust Real Estate

Cornerstone Commerce Center is located less than half a mile north of the intersection of Interstate 10 and Ackerman Road, with direct access to Ackerman Road. The center will also have direct connection to Interstates 410 and 10, giving tenants the ability to easily travel across San Antonio and to the growing Houston market. The location will also offer tenants access to numerous rail, air and ground transportation options provided by San Antonio and its surrounding cities.

Josh Aguilar and Rob Burlingame of CBRE are managing the leasing assignment for the property.

Growing market

Chris McCluskey, vice president at Kansas City, Mo.,-based VanTrust, said in a prepared statement San Antonio saw a record-breaking increase in the number of logistics companies and last-mile distributors looking to establish a presence in the industrial market. McCluskey said the Cornerstone Commerce Center will offer San Antonio and the booming northeast corridor the space it needs to deliver during this heightened demand.

San Antonio saw historic industrial record growth in 2021, with a total absorption of more than 4.1 million square feet of space, according to CBRE. The northeast San Antonio corridor alone experienced a more than 3 million-square-foot total net absorption, and more than 1.5 million square feet of industrial space is already under construction, CBRE added.

Expanding portfolio

VanTrust’s news about the spec development in San Antonio at Cornerstone Commerce Center comes less than a week after the firm broke ground on Peoria Logistics Park, the largest Class A industrial park to be developed in the Peoria, Ariz., submarket. Phase I of the 150-acre project will feature a 157,000-square-foot, build-to-suit distribution center for Frito Lay. The center will eventually have as many as eight buildings, with sizes ranging from 100,000 square feet to more than 600,000 square feet.

In the same week, Van Trust announced it was set to break ground on two speculative buildings in the company’s New Albany International Business Park in the Columbus, Ohio, area. The properties will be the 302,400-square-foot Innovation II and 524,500-square-foot New Albany 525.

Several weeks ago, the full-service commercial real estate development firm broke ground on a 44-acre spec project in Northeast Tulsa, Oklahoma. Tulasi Commerce Park will have a 231,130-square-foot, rear-load building and a 453,486-square-foot cross-dock building.

The post VanTrust to Break Ground on San Antonio Industrial Center appeared first on Commercial Property Executive.

7600 Broadway. Image courtesy of Embrey

Embrey’s upcoming mixed-use development in San Antonio, Texas, has reached full office occupancy months ahead of its completion. Morgan Stanley and Embrey revealed plans to occupy space at the 52,835-square-foot 7600 Broadway once the property is delivered this summer.

Morgan Stanley has signed a 28,000-square-foot lease at the location, with tenant buildout already underway. Embrey will relocate its headquarters to the remaining 25,000 square feet on the third floor. JLL represented both parties in the leasing agreement.

Embrey debuted the project in 2018 with the acquisition of a 4-acre parcel from Kopplow Construction and later received a construction loan from Frost Bank. In addition to the 52,835 square feet of office space, the three-story property will include 216 residential units, which are expected to come online this year.

Office tenants will have access to a conference room, game lounge, yoga studio and outdoor patio. Stream Realty Partners has been tapped to manage the property.

Located within the Alamo Heights neighborhood, the development is approximately 6 miles from downtown San Antonio and is within walking distance of several retail and dining options.

Although the San Antonio office market displayed only modest signs of growth at the end of the fourth quarter, construction activity was robust. The metro had 855,672 square feet of office space under construction going into 2022, a JLL fourth quarter report shows.

Notable projects awaiting delivery in San Antonio include Jefferson Bank’s 1900 Broadway. The 13-story office building developed by Miami Real Estate Capital is slated for completion this spring. Jefferson Bank will take up half of the property’s office capacity, with the remaining suites available for lease.

The post Morgan Stanley Signs 28 KSF Lease at San Antonio Development appeared first on Commercial Property Executive.

IRA Capital has acquired a 55,457-square-foot medical office portfolio in San Antonio. Transwestern Real Estate Services arranged the deal on behalf of the seller, Gastroenterology Consultants of San Antonio. The portfolio encompasses three medical office buildings and an ambulatory surgery center.

The Transwestern Healthcare Advisory Services team included Executive Managing Director Alan Grilliette and Executive Vice President Justin Brasell. 

At the time of the transaction, the office component was fully leased by three long-term tenants. The assets are:

• The 24,230-square-foot South Texas Medical Center, built in 2016 and located at 5223 Hamilton Wolfe Road;
• The 18,438-square-foot Northeast Medical Center, built in 2013 and located at at 12850 Toepperwein Road;
• The 12,789-square-foot Stone Oak Medical Center, built in 2004 and located at 855 Proton Road.

All three properties are located in suburban areas, close to several hospitals and medical centers. The facilities, which are suited for high patient volume, include offices as well as operating and exam rooms.

Not deterred by pandemic-generated instability, IRA Capital expanded its MOB footprint last year with the acquisition of a 41,500-square-foot facility in Manhasset, N.Y., and the $38 million purchase of a Santa Ana, Calif., building.

Investor interest to persist

Last year, Marcus & Millichap anticipated a swift recovery for the health-care industry post-pandemic. The latest data on the sector supports the positive outlook.

According to the most recent Marcus & Millichap report, 30 percent of all U.S. office transactions year-over-year in March 2021 consisted of medical office sales. The number of deals closed during the six months ending in March was also the highest the sector has seen in 20 years, as the range of investors seems to have diversified.

And medical office continues to qualify as a reliable investment, according to Ellen Comeaux, senior vice president & commercial sales leader at TIAA Bank. While the pandemic has impacted medical office initially, recovery for the asset class has gained ground at a quick pace. Given the aging U.S. population and decentralization of care, demand for medical space is expected to remain on the upswing.

The post IRA Capital Buys San Antonio MOB Portfolio appeared first on Commercial Property Executive.

3551 Dan Morton Drive

MDH Partners has received $48.6 million in post-acquisition financing for a four-building, 505,719-square-foot industrial portfolio in Dallas and San Antonio. JLL secured the three-year, floating-rate loan with a national bank. In November, MDH also worked with the brokerage to arrange $84.3 million in financing for the purchase of six properties. 

The fully-leased Texas portfolio includes two cold storage facilities located at 3551 Dan Morton Drive in Dallas and 2001 S. Laredo St. in San Antonio. MDH acquired the assets in January via a sale-leaseback deal with Surlean Foods. 

Demand for cold storage has been on the rise in recent years due to an increase in online grocery sales. The coronavirus pandemic led to an even faster expansion in online shopping, which boosted demand for climate-controlled warehouse space. In December, Cold Summit Development broke ground on Cold Summit Dallas, a 343,000-square-foot cold storage facility set to open this fall.

The remainder of the portfolio includes Shiloh Commerce Center, a two-building asset located at 600-640 Shiloh Road in Plano. Built in 2001, the Class A facility is fully leased to three tenants.

JLL’s team included Senior Managing Director Christopher Drew, Director Maxx Carney and Associate Reid Carleton. Senior Managing Director Jeremy Womack and Director Jarrod McCabe provided Dallas and San Antonio market insight. In January, McCabe arranged a five-year, fixed-rate, non-recourse loan for the buyer of a three-building industrial portfolio in the Metroplex.

The post MDH Partners Gets $49M Loan for Texas Industrial Portfolio appeared first on Commercial Property Executive.

READ ALSO: CPE’s February 2021 Must-Reads

Using a combination of renovated historic buildings and new construction, the 12-acre former site of the Lone Star Brewery will include about 250 apartment units totaling around 300,000 square feet, about 100,000 square feet of office space and 50,000 square feet of retail, restaurant and entertainment space.

A spokesperson for the developers told Commercial Property Executive that the site, on the south side of Lone Star Boulevard and just west across the San Antonio River from Roosevelt Park, has been unused since 1996, when the brewery closed down and operations were moved to Longview, Texas.

As things stand now, groundbreaking will take place later this year, with vertical construction beginning in 2022. Phase one is scheduled for completion in 2025.

The developers intend to create a walkable environment that will “encourage an active, al-fresco lifestyle with Southwestern-style open-air plazas, pocket parks and dynamic outdoor programming.”

Midway and GrayStreet plan to develop Lone Star District over a decade. The spokesperson added that the companies are working on master-plan alternatives for the balance of the site, a 20-acre parcel immediately south of the first phase.

Lone Star District is about a mile and a half south of downtown San Antonio, within the city’s Southtown Arts District, and barely a mile from the intersection of I-10 and I-37.

The project’s design team includes master-plan architects Lake|Flato, OJB Landscape Architecture and civil engineer WGI Engineers.

Still falling, slowly 

Though negative absorption in San Antonio’s office market continued into the fourth quarter, increases in sublease activity slowed, according to a report from JLL. And asking rental rates are holding steady, though concessions are increasing.

JLL noted “a full pipeline of new construction” currently, including a 53,000-square-foot property at 7600 Broadway.

The Downtown/CBD Class A office submarket has a total vacancy of 8.7 percent on an inventory of about 2.3 million square feet, also according to JLL.

In January, the investment arm of NAI Partners, Partners Capital, sold Marymont Office Park, a four-building, 85,368-square-foot property in San Antonio, to Citadel Venture Holdings.

The post Midway, GrayStreet Partners Unveil San Antonio Master Plan appeared first on Commercial Property Executive.

Lanark Distribution Center. Image courtesy of Stream Realty Partners

AEW Capital Management LP sold Lanark Distribution Center, a two-building industrial property in San Antonio, Texas. Albany Road Real Estate Partners is the buyer, according to public records.

READ ALSO: Logistics Rents Climb Amid COVID-19 Crisis: Prologis

Located at 610 Lanark Drive, the development was constructed on a 10-acre site in the metro’s northeast industrial submarket. The property offers 235,400 square feet across two buildings and features 22 to 25-feet clear heights, 155-foot truck court depth, 55 dock doors and seven drive-in doors. One of the buildings, offering nearly 148,000 square feet, was developed in 1975, while the second one, at about 88,000 square feet, was constructed in 1982. The asset is situated near Interstates 10 and 35, which connect it to other major Texas cities like Austin and Houston.

Stream Realty Partners’ Jamie Jennings, Andrew Rabinovich, Kevin Cosgrove and Walter Simpson represented AEW Capital Management in the transaction.  

According to Stream, Lanark Distribution Center was approximately 97 percent leased at the time of sale to a diverse mix of regional and national tenants. The tenant roster includes Ram Tool Construction Supply Co., Powerhouse Toys, and safety equipment supplier ABATIX. The property has a weighted average lease term of 2.6 years, with leases ranging in size from 3,000 to 86,620 square feet.

AEW Capital Management acquired the property in the summer of 2019, CommercialEdge data indicates.

Limited industrial supply in San Antonio

Jennings, Stream’s managing director of investment sales, said in prepared remarks that Lanark Distribution Center could increase its occupancy, since it is situated in a supply-constrained market. The San Antonio region has been attracting major companies like Amazon, which recently announced plans to bring three new facilities totaling 2.1 million square feet to the area.

Jennings added in his prepared statement that demand for well-located, small light-industrial properties is outpacing demand for larger warehouses in central Texas. Further north, Stream Realty also brokered the sale of a Dallas-area industrial property in January.

The post AEW Capital Management Sells San Antonio Industrial Asset appeared first on Commercial Property Executive.

Data from the U.S. Green Building Council shows that 139 projects received the certification from the organization’s program in the Lone Star State last year. Combined, these projects represent more than 41.7 million gross square feet of space. Offices continued to lead rankings, followed by educational facilities and warehouses/distribution centers. Take a look at the list below, featuring some of the highest-scoring office projects in the state.  

1. & 4. USAA Bank Services Building & USAA Home Office Building, San Antonio – LEED Platinum & Gold

USAA Corporate Headquarters

A 600,754-square-foot component of the massive 4.5 million-square-foot office asset located at 9800 Fredericksburg Road—better known as USAA’s headquarters—earned the highest level of LEED certification in February 2020. The award is, in fact, a recertification, following two LEED Gold recognitions received in 2012 and 2019. The remaining square footage of the property was also recertified at the same time, to the gold level, also following two other certifications, in 2013 and 2019, respectively. The McDermott Building is also the largest financial office building in the U.S. to earn Energy Star certification from the U.S. Environmental Protection Agency, an award it has received every year since 2009.

USAA’s commitment to the environment is reflected on multiple levels: Through recycling efforts, the company saves more than 130 million gallons of Edwards Aquifer water every year at its San Antonio corporate office, which is crucial to the region considering it is the source of drinking water for 2 million people and is the primary water supply for agriculture and industry. About 70 million gallons are saved annually, as the company has used recycled water for landscaping since 2004. Nowadays, USAA also uses recycled water for the building’s cooling towers, which conserves another 60 million gallons per year. In fact, USAA Real Estate, the company’s real estate investment arm, has instituted an energy and water analytics program that uses metering to measure energy and water consumption and efficiency at 15-minute intervals. Using that data, it benchmarks its properties to detect trends outside normal patterns.

Since 1977, the company has provided employees with the USAA Vanpool Program, which is an affordable ride to and from work. Moreover, the company’s members have opted for online document delivery since 2019, which helps reduce paper consumption and overall expenses.

2. 816 Congress, Austin – LEED Platinum

816 Congress

Cousins’ 470,389-square-foot asset was recertified in April 2020 to the Platinum level, following two LEED Gold awards received in 2018 and 2019. It is also Energy Star labeled.

The 20-story office building was completed in 1983 in the central business district, providing easy access to the Texas Capitol, Federal Courthouse, Interstate-35 and MOPAC Expressway. In 1994 and 2008, the property underwent cosmetic renovations, and a $3 million outdoor terrace and lounge was added on the 15th floor in 2012. Notable tenants in the building include Nossaman, CohnReznick Capital and Eric Wright & Associates.

3. LORD Green Building, Dallas – LEED Platinum 

LORD Green Building. Image via Google Street View

The 6,663-square-foot office asset located at 10807 E. Northwest Highway is the headquarters of LORD Green Real Estate Strategies. In May 2020, the property received the LEED Platinum certification for existing buildings. It also holds BREEAM USA-In Use and Energy Stars labels.

The building dates back to 1959 and underwent upgrades in 2006 and 2013. Since 2017, it has been under LORD Green Strategies’ ownership and improvements have continued. The new owner retrofitted the building’s LED system, installed a weather-based irrigation controller and added secure bicycle storage. Water is preserved through the property’s smart irrigation controller as well as through efficient plumbing fixtures. A waste management program recycles consumables made of metal, paper, plastics and glass, electronics and batteries, and organic material is locally composted. Additional sustainable features include proximity to public transport, operable windows, landscaping with native plants and shade trees, an outdoor space area for employees and a dog park with turfgrass.

5. Trammell Crow Center, Dallas – LEED Gold

Trammell Crow Center

This 1.2 million-square-foot building received its third LEED certification in September 2020. Previously, the USGBC had recognized its sustainability commitments in 2010 and 2015, with LEED Silver and LEED Gold certifications, respectively. Trammell Crow Center received Energy Star recognition from 2008 to 2016.

After three years under construction, the 50-story postmodern skyscraper designed by Skidmore, Owings and Merrill opened in 1985. Its granite facade and black pyramid on top made it one of the most identifiable buildings in the U.S. Since 2011, the tower is owned by JP Morgan Asset Management, according to Commercial Edge data. In 2019, a $140 million, two-year renovation led by HKS and HOK adapted it into a mixed-use property by adding a multifamily component and a hotel. The upgrade also included 1.4 acres of outdoor space with 122 shaded seats, which increased walkability and livability at the property, while also mitigating the heat-island effect. Notable tenants in the building include ORIX, Common Desk, Invesco, Goldman Sachs and FTI Consulting.

6. Colonnade, Dallas – LEED Gold

The Colonnade

Last May, the 1.1 million-square-foot property located at 15301 Dallas Parkway in Addison was recertified to the gold level. Previously, the asset had been LEED-certified at the silver and gold levels in 2010 and 2015, respectively.

Consisting of three towers connected via a three-story, climate-controlled vaulted glass atrium, which includes seating areas, landscaping and water features. The office asset won the BOMA Building of the Year award in 2003 and 2004, and again in 2012 and 2013. Built in 1982, The Colonnade underwent cosmetic renovations in 2007 and 2014. Under the current ownership of Brooklyn-based Fortis Property Group—according to Commercial Edge—renovations continued in excess of $32 million. Tenants in the building include RMG Network, Google, Zurich American Insurance, Farmers Insurance and Accounting Principals.

7. Pioneer Natural Resources Headquarters, Irving – LEED Gold

Pioneer Natural Resources Headquarters

Completed in 2019, the 1.1 million-square-foot, 10-story office property at 777 Hidden Ridge has earned the LEED Gold certification in March 2020. KDC developed the five-building complex as the headquarters for oil and gas company Pioneer Natural Resources. Pioneer has signed a 10-year lease with the owner, PRP Real Estate Investment Management.

The project has been targeting LEED certification from the early stages of development, so its design emphasizes the land’s natural surroundings through amenities such as an outdoor fitness terrace, soccer pitch, multisport court, fitness trail and stocked fishing lakes. The original mesquite forests were preserved, which is a bonus to the occupants, as more than 90 percent of the interior areas have direct outside views. During development, 98 percent of construction waste was sorted and recycled, and presently, rainfall and surface runoff water is filtered to improve stormwater quality.

READ ALSO: Managing Megadevelopments: An Insider’s View

8 & 9. Two & Three Lincoln Centre, Dallas – LEED Gold

Two Lincoln Centre

The two phases of the massive Lincoln Center at 5420 and 5430 Lyndon B. Johnson Freeway were completed in 1981 and 1984, respectively. Spanning 664,100 and 602,056 square feet, the office assets are both at their second LEED certification. Prior to the LEED Gold award received in October 2020, Nuveen Real Estate’s buildings first received a LEED certification to the silver level in 2015. In addition, Lincoln Centre has been an Energy Star-certified building from 2009 to 2018 and a BOMA360-designated building from 2011 until 2017. Notable tenants in the building include MetLife, Societe Generale, Northwestern Mutual, Washington Federal and North Dallas Clinic.

The property’s park-like landscape prompted the management team to hire Banyan Water to calculate and deliver the needed amount of water. As such, more than six years ago, they installed on-site controllers, flow monitors and weather tracking technology that integrated with the property’s existing irrigation system. This translated into a drop of 66 percent in irrigation water use. Moreover, real-time monitoring of water management tracked down leaks, which, once resolved, resulted in more than 500,000 gallons of water preservation per year, in addition to the prevention of leak-related property damage.  

READ ALSO: A Deep Dive Into Water Management Strategies

10. Fidelity – One Destiny Way, Fort Worth – LEED Gold

Fidelity – One Destiny Way

Completed in 1999, Fidelity Investments’ property received the LEED Gold award last February, upgrading from the LEED Silver certification received in 2014. The asset also held Energy Star designations from 2011 to 2014, excluding 2013.

The Beck Group developed the four-story property on an 83-acre lot. Built of native stone and glass, Fidelity – One Destiny Way features three main wings that radiate from a central nucleus and are oriented on the site to maximize views of the surrounding forest, meadows and ponds. Closure to the natural environment is enhanced through hiking trails that run through the naturally wooded campus.

The post Top 10 LEED-Certified Buildings in Texas in 2020 appeared first on Commercial Property Executive.

Amazon Delivery Station, San Antonio. Image courtesy of Brooks

Amazon will expand its footprint in the Lone Star State again with the opening of three new facilities in San Antonio. The e-commerce giant will bring two fulfillment centers and a delivery station totaling an aggregate 2.1 million square feet to the home of the Alamo.

READ ALSO: How Automation Will Fill Supply Chain Gaps: Report

Amazon will create a 1 million-square-foot fulfillment center for picking, packing and shipping larger items, in addition to a new 750,000-square-foot robotics fulfillment center where Amazon associates will work with the assistance of state-of-the-art robotics to handle smaller customer items. The $200 million robotics center will be located on Cal Turner Drive on the east side of San Antonio. According to a report by NAI Partners, Seefried Industrial Properties is developing the build-to-suit facility. “The Atlanta developer has a history of making deals with Amazon, although the tenant behind the $200 million fulfillment center project is cited as confidential,” according to the September 2020 NAI Partners report.

At the 1,300-acre Brooks mixed-use community, Amazon will expand its last-mile operations with a delivery station at 8210 Aviation Landing, a 350,000-square-foot industrial facility that was completed earlier in 2020 near Brooks City Base. The delivery station is on schedule to debut in 2021, while the larger fulfillment center and the robotics facility are due to launch in 2021 and 2022, respectively.

Going big in Texas

Amazon, which first established a presence in Texas in 2010, has been undergoing a growth spurt in the Lone Star State this year. In addition to its newly announced projects in San Antonio, the fourth quarter of 2020 yielded news of two firsts in the state. In October, the company revealed it would open its first fulfillment center in Waco with the development of a 700,000 square-foot robotics fulfillment center. Additionally, during the first week of December, Amazon announced plans for a 1 million-square-foot fulfillment center in Missouri City, its first project in the suburban Houston town.

Texas, however, is just one location that has been high on Amazon’s radar this year. On the heels of the San Antonio announcement, the company revealed that it would establish its very first fulfillment center in the State of Louisiana with the opening of a 1 million-square-foot facility in Carencro in 2021.

The post Amazon to Expand by 2 MSF in San Antonio appeared first on Commercial Property Executive.

600 Schertz Parkway. Image courtesy of Hines

Hines has acquired a 1,262,294-square-foot Amazon fulfillment center in Schertz, Texas. The new owner spent $129.2 million for the building, according to the company’s SEC filings. The sale is the company’s fourth global logistics purchase this year. The Class A warehouse last traded in 2016, when Circle Industrial acquired the property, CommercialEdge data shows.

READ ALSO: Hines, NPS of Korea Form $1.5B Joint Venture

The facility is situated at 6000 Schertz Parkway, which is less than 1 mile from Interstate 35 and 20 miles from downtown San Antonio. The location grants access to the Texas Triangle, which serves a population of more than 25 million people living in or around Austin/San Antonio, Houston and the Dallas/Fort Worth metro areas. Completed in 2013, the building occupies 96 acres and includes 72 dock high loading doors.   

At the beginning of December, Hines sold two industrial assets in Dallas and Houston for $171 million. The buildings in the 1.8 million-square-foot portfolio were completed in 2019 and were fully leased to a single tenant under long-term lease agreements.

The post Hines Pays $129M for Amazon Fulfillment Center appeared first on Commercial Property Executive.

University Park Center III

Clarion Partners has sold two Class A office properties totaling 165,007 square feet at University Park in northwestern San Antonio. University Health System (UHS) acquired the properties in the city’s largest office sale of the year. Stream Realty Partners and Transwestern brokered the transaction.

The seller acquired the properties in 2014, for $26.8 million, according to San Antonio Express-News. UHS will house part of its non-clinical employees at the location, which make up nearly 12 percent of the taxpayer-funded hospital operator’s staff in the city. Currently, roughly 1,000 administrative employees work in seven office buildings in the area, leased by UHS at an annual expense of $2.3 million.

Completed in 2001, University Park Tech Center III at 5959 Northwest Parkway encompasses 76,487 square feet on 7.5 acres, Yardi Matrix data shows. Located on a 9.4-acre site at 5800 Farinon Drive, University Park Tech Center IV offers 88,520 square feet and dates back to 1999.

University Park is a 4 million-square-foot office center, situated next to Interstate 10 and 13 miles northwest of Downtown. Current tenants include Ernst & Young, Becton Dickinson, SWBC and United HealthCare.

Stream’s Kevin Cosgrove and Scott Ferguson worked on behalf of the seller, while Transwestern’s Ken Adams and Chad Gunter represented the buyer. Earlier this year, Clarion acquired a fully leased, 155,425-square-foot logistics asset in Dallas, from a joint venture of Stream and LaSalle Investment Management.

The post University Health System Makes 165 KSF Office Buy in San Antonio appeared first on Commercial Property Executive.

Hotel Contessa. Image courtesy of Hodges Ward Elliott

Hotel Contessa, an all-suite luxury hotel along the banks of the famed Riverwalk in downtown San Antonio has come under new ownership, courtesy of a transaction orchestrated by Hodges Ward Elliott. HWE performed double-duty on the deal, arranging the sale of the 265-key property on behalf of Hixon Properties and advising buyer Wheelock Street Capital on acquisition financing.

READ ALSO: Pebblebrook Launches Independent Hotel Collection

As is the case in many markets across the U.S., hotel trading activity in the San Antonio area is anything but vigorous in the pandemic-impacted economic climate. “There are very few assets on the market today but there are certain instances where a seller can sell, and a buyer is willing to buy,” John Bourret​, managing director with Hodges Ward Elliott, told Commercial Property Executive. “The current environment is still incredibly challenging given various parts of the country in different stages of shutdown/lockdown. However, there is clearly optimism surrounding the recently announced vaccines and their imminent distribution.”

Hotel Contessa opened its doors to its first guests in 2005, a development project of Hixon and Hines Interests. Located at 306 W. Market St., the 12-story lodging destination sits just one block from the Henry B. Gonzalez Convention Center and three blocks from the historic site, The Alamo. The Butler Rosenbury and Partners-designed property boasts a host of coveted amenities, including 10,000 square feet of premier function space, a restaurant and bar, rooftop pool and a full-service spa. Hotel Contessa got a sprucing-up via an extensive renovation program in 2015 and will benefit from an additional upgrade under Whitlock’s ownership.  

Dollars and cents

The parties involved in the trade of Hotel Contessa have not divulged the financial terms of the transaction; however, according to Bexar County records, the asset has a current assessed value of approximately $52.4 million. Likewise, HWE is not at liberty to identify the lender that provided Wheelock with an undisclosed amount of acquisition funds but attests that financing is readily available under the right conditions. “The lending market is very similar to the equity market in that there is plenty of liquidity assuming the opportunity is properly priced from a risk/reward perspective,” Bourret said.

Hotel Contessa marks Wheelock’s entrée into the San Antonio hospitality market, as well as the company’s first acquisition since the COVID-19 pandemic hit the U.S. Wheelock, which is planning to invest capital in the renovation of the hotel, has tapped HEI Hotels & Resorts to manage the property. Benchmark Resorts & Hotels had been responsible for operations since the property’s opening 15 years ago.

The post San Antonio’s Illustrious Hotel Contessa Changes Hands appeared first on Commercial Property Executive.

Foster Ridge Distribution Center. Image courtesy of Koontz Corp.

Exeter Property Group has acquired Foster Ridge Distribution Center, a 327,000-square-foot industrial building in San Antonio. The property was purchased from Koontz Corp. 

The seller and developer broke ground on the property in May 2018 and delivered it in roughly 18 months. Voya Financial and Catlyn Capital Corp. provided the construction financing. R.C. Page served as the general contractor for the Powers Brown Architecture-designed project. The facility features four ramps, 32-foot clear heights, 75 dock-level doors, 130-foot truck courts and ESFR sprinklers.

The industrial warehouse occupies a 21-acre parcel at 6611 Lancer Blvd., close to Interstate 10, which also provides access to Interstate 410. Downtown San Antonio is 11 miles west. Additionally, the property is proximate to a $100 million, 930,000-square-foot Dollar General Distribution Center, the retailer’s first facility in Texas.

JLL Managing Director Trent Agnew negotiated the deal on behalf of the seller. Exeter Property Group was represented in-house. In July, the company paid $18 million for an industrial portfolio encompassing 240,358 square feet across four properties in Fairless Hills, Pa. A partnership between Endurance Real Estate Group and Thackeray Partners sold the assets.

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Brass Professional Center

Brass has received $57.7 million in refinancing for a 576,000-square-foot office park in San Antonio. NorthMarq arranged the 10-year, fixed-rate loan for with Brass Professional Center, which includes a one-year interest-only period followed by a 30-year amortization schedule with a CMBS lender through Goldman Sachs. According to Yardi Matrix data, the financing will retire the existing $61.5 million debt from Värde Partners.

Comprising 11 buildings located along Loop 410, the property is some 3 miles from the metro’s Medical Center, roughly 4 miles from retail centers such as The Village at the Summit and the Wonderland of Americas, as well as almost 12 miles northwest of downtown San Antonio. Completed between 1968 and 1986, the assets’ tenant roster includes more than 100 companies, ranging from local and regional firms to larger credit type and health-care providers.   

Senior Vice President and Managing Director Bryan Leonard from NorthMarq brokered the deal. In mid-June, the company arranged $74 million in financing for a two-building speculative office project in Chandler, Ariz.

The post San Antonio Office Park Lands $58M Refi appeared first on Commercial Property Executive.

Walker Ranch Business Park. Rendering courtesy of Worth & Associates

Worth & Associates has broken ground on Walker Ranch Business Park, a two-building office and flex office project in San Antonio. The firm is developing the complex with Joeris General Contractors and Chesney Morales Architects. Completion for the 135,000-square-foot development is scheduled for 2021. Worth acquired the site from Coker United Methodist Church.

Building I is slated to have 58,000 square feet, with office suites ranging from 1,500 to 3,500 square feet. Planned amenities include a break room, two conference rooms, outdoor break areas and bike trail. Building II is scheduled to have 78,000 square feet and 26-foot clear height. It will include the possibility to add up to 37,000 square feet of mezzanine space.

The site sits on 10.8 acres at the corner of Wurzbach Parkway and West Avenue. San Antonio International Airport is 3 miles from the development.

In March 2019, Worth broke ground on a medical center, totaling 220,000 square feet, in San Antonio. Completion is scheduled for this summer.

The post Worth & Associates Breaks Ground on 135 KSF San Antonio Project appeared first on Commercial Property Executive.

Parkview Plaza. Image courtesy of Koontz Corp.

Koontz Corp. has completed the sale of Parkview Plaza, a 58,574-square-foot office building in New Braunfels, Texas. Royal Oak Realty Trust acquired the single-tenant property, which is fully leased to PNC Bank. Parkview Plaza is expected to accommodate more than 500 workers at full capacity, with PNC using the entire facility as an operations and call center.

Located at 2049 Sundance Parkway on a 10.7-acre site, the low-rise building came online in 2018 and is the first phase of the Parkview Plaza office development. Once a golf course, the asset is within the Sundance Business Park, about a mile from Interstate 35 and just off FM 360. The business park includes walking trails, accent landscaping, wide boulevards and water features. Koontz owns the adjacent 4-acre tract, the last remaining undeveloped land in the park, and has already begun preleasing Phase II of Parkview Plaza, a planned 47,000-square-foot office property.

According to public records, Koontz developed Phase I of the project with the help of an $8.5 million construction loan from Broadway National Bank. Also in San Antonio, Broadway National Bank provided construction financing for another office development. Dubbed the Light Building, GrayStreet Partner’s $47 million transformation of the former San Antonio Light newspaper building at 420 Broadway St. offers mixed-use office and retail space.

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Woodlake Crossing. Image via Google Street View

CBRE has completed the sale of Woodlake Crossing, a 159,703-square-foot retail power center in San Antonio. Elm Creek Real Estate purchased the asset. CBRE First Vice President Kevin Catalani represented the seller, InvenTrust Properties, an active player in the retail market. In February, the REIT acquired Trowbridge Crossing, a 62,600-square-foot retail center in Sandy Springs, Ga., for $11 million. 

Located at 6212 Woodglen Drive, Woodlake Crossing is 7 miles from Interstate 410. The property is within a dense retail corridor, which also includes Rittiman Pointe Commercial Center. The asset is some 12 miles northeast from downtown San Antonio. Ross, Petco, Bank of America, CATO, Subway, State Farm, D&B Wine & Spirits, Great Clips, Chick-Fil-A and T-Mobile are among the tenants of the retail property. 

Elm Creek Real Estate was already the owner of a space previously occupied by Target at Woodlake Crossing. Following the transaction, Elm Creek will take full control of the retail property. Stream Realty will handle leasing for the available space. 

If you’d like to be featured in Brokers’ Corner, simply fill in our short form or send your deal to deals@cpe-mhn.com.

The post CBRE Arranges Sale of Northeast San Antonio Retail Center appeared first on Commercial Property Executive.

The development is slated for delivery in the fall of 2021. The company acquired the 4-acre parcel from Kopplow Construction in November 2018, according to public records, and broke ground at the site a year later. Frost Bank provided financing for the project.

Located at 7600 Broadway St., the office component will feature such amenities as conference and game rooms, a tenant lounge, a gym with private showers and an outdoor rooftop terrace. Situated at the junction between Broadway Street and Nacogdoches Road, the site is 2 miles south of San Antonio International Airport and 8 miles north of the city center.

JLL Managing Director Mark Krenger and Associate Meredith Howard will oversee the leasing efforts. Earlier this month, a different JLL team negotiated a  29,257-square-foot lease expansion on behalf of Venture Global LNG Inc.

The post JLL to Lease San Antonio Mixed-Use Project appeared first on Commercial Property Executive.

Dominion Crossing. Image courtesy of Woodside Health

Woodside Health has purchased Dominion Crossing, a 30,000-square-foot medical office building in San Antonio. According to Yardi Matrix data, Athena Domain sold the Class A property. The deal marks Woodside’s 12th Texas acquisition following the November purchase of an HCA Healthcare-anchored asset in Cypress.

Located at 21727 W. Interstate 10 West, the two-story building came online in 2016 and is within the Dominion Crossing Shopping Center, on a 2.4-acre site. University Health Systems and CHRISTUS Santa Rosa anchor the property.

Dominion Crossing is some 20 miles north of downtown San Antonio, close to The Dominion, Stonewall Ranch and Fair Oaks neighborhoods. The Children’s Hospital of San Antonio and Post Acute Medical Specialty Hospital are both 8 miles south of the property.

According to Woodside Health, the firm’s portfolio includes medical and health-related properties in Arizona, Florida, Georgia, Michigan, Ohio and Texas. Despite the ongoing crisis, the company is in advanced discussions to close several new investments.

The post Woodside Health Expands Texas Footprint appeared first on Commercial Property Executive.

6999 Alamo Downs Parkway, San Antonio. Image via Google Street View

The Arden Group is the recipient of a two-part, $163 million loan package from CIT Bank and BlackRock to help it assemble a 2.1-million-square-foot, 12-property industrial portfolio across multiple states.

Both the $134.3 million senior loan from CIT and the approximately $29.2 million in mezzanine debt from BlackRock carry floating rates. The debt covers Arden’s $96 million purchase of 10 assets from Avistone LLC, as well as a recapitalization of two sizable industrial properties that Arden purchased about 18 months ago.  

Newmark Knight Frank’s Dustin Stolly and Jordan Roeschlaub arranged the transaction, along with Chris Kramer, Nick Scribani and Shervin Tork. In a prepared statement, NKF described the properties as well spread out across six industrial markets nationwide and almost 90 percent leased to more than 300 diverse tenants.

READ ALSO: Top 5 Las Vegas Industrial Completions of 2019

The financing package replaces previous CMBS debt on the 10 Avistone assets, which are located in San Antonio, Dallas, Atlanta and Columbus, Ohio, and previous bridge debt on two separate industrial properties in Philadelphia and Charlotte, N.C.

Arden bought a 608,000-square-foot industrial building in Lower Bucks County, Pa., near Philadelphia, in August 2018 for about $44.9 million. In November of that year, it purchased for $38.3 million the 393,357-square-foot Coffee Creek Industrial Business Center in Charlotte.

The former Avistone portfolio includes Creek Run Commerce Center at 460-480 Schrock Road in Columbus and West Tech Business Center at 6901-6999 Alamo Downs Parkway in San Antonio.

Tall and Wide

In a very different acquisition almost exactly a year ago, Arden and partners Silverstein Properties and Migdal Insurance bought 1735 Market St., a 54-story Class A office tower in Philadelphia, for $452 million.

Nationally, the industrial space market remains in growth mode, with about $91.7 billion in sales volume in 2019, an increase of about 17 percent over the previous year, according to a fourth-quarter report from NKF. “Investor confidence remains high, as low vacancy, strong rent growth and a paucity of modern distribution facilities continue to drive robust investment in industrial assets. As gateway markets seeing pricing rise, investors are allocating funds to emerging markets with accelerating demand,” the report states.

The post CIT Bank, BlackRock Originate $163M Loan Package for Industrial Portfolio appeared first on Commercial Property Executive.

Travis Park Plaza. Image courtesy of Entrada Partners

GrayStreet Partners has sold Travis Park Plaza, a 151,736-square-foot Class A office property in downtown San Antonio, to Entrada Partners. Cushman & Wakefield assisted the seller, while JLL secured acquisition financing through Zions Bank for the new owner.

The deal included the neighboring six-level parking structure. The new owner plans to begin capital improvements, upgrading property aesthetics and amenities, utilizing funds from the lease-up of One Alamo Center, its 172,000-square-foot office asset half a mile away.

Located on 3 acres at 711 Navarro St., the seven-story Travis Park Plaza opened its doors in 1970 and was most recently renovated last year. At the time of the sale, the property was 82 percent leased to tenants including Kairoi Residential, Conviva Care Solutions and Tetra Tech. The asset is within 1 mile of interstates 10, 35 and 37.

Cushman & Wakefield’s Todd Mills, Carrie Caesar and Hunter Mills represented the seller, while JLL’s De’On Collins facilitated the acquisition loan. Larry Mendez and Brad Kaufman of Transwestern will continue to lease the property. The firm will also oversee management operations.

One year ago, Entrada acquired an industrial portfolio near the Interstate 410 loop in San Antonio. The four buildings total approximately 484,000 square feet.

The post Entrada Expands San Antonio Office Footprint appeared first on Commercial Property Executive.

South Park Mall. Image courtesy of JLL

With the assistance of JLL, an unidentified investor has sold two Texas malls totaling nearly 1.2 million square feet. A joint venture of Mason Asset Management, Namdar Realty Group and CH Capital Group acquired South Park Mall in San Antonio and Westgate Mall in Amarillo, Texas, for an undisclosed price.

READ ALSO: Experiential Retail: What You Need to Know

Westgate Mall. Image courtesy of JLL

Located on nearly 49 acres at 2310 S.W. Military Drive, South Park is the only enclosed regional mall in south San Antonio, an area spanning approximately 25 square miles. The 664,000-square-foot, single-story property welcomed its first shoppers in 1968 and underwent its most recent renovation in 2018. Currently, South Park is 95 percent leased, with a tenant roster that includes anchors JCPenney, Dick’s Sporting Goods and Bealls, as well as other national retailers such as Old Navy, Ulta Beauty and The Vitamin Shoppe. 

More than 500 miles from South Park, in the northern part of the state, the 94-acre Westgate Mall sits at 7701 West Interstate Highway 40. The retail destination holds the distinction of being the only enclosed mall within a 100-mile radius, allowing for a trade area that encompasses parts of Colorado, Kansas, New Mexico and Oklahoma. The shopping center opened in 1982 and has since undergone a bevy of renovations, the most recent of which took place in 2017. Counting Dillard’s and Bealls as anchors, the property is presently roughly 80 percent leased. On behalf of the new ownership, Namdar is handling management and leasing responsibilities for both South Park and Westgate.

Mall pulse

While the mall sector continues to struggle in the face of mushrooming e-commerce sales, it is still alive, particularly in high-growth cities like San Antonio. Net absorption for malls for all U.S. markets turned positive in the third quarter of 2019, reaching 59,000 square feet, per a report by JLL. However, not all malls are on equal footing; demand for lifestyle center space spurred the increase in absorption.

Experts agree; there is a future for the mall. “Many mall landlords have been faced with the question of what to do with an outdated retail format or a vacant department store space. The solution for malls with strong demographics is clear: redevelopment,” according to the JLL report. “Malls are being revitalized with experiential and non-retail elements.”

The post JV Buys Texas Shopping Centers Totaling 1 MSF appeared first on Commercial Property Executive.

Schertz Distribution Center. Image courtesy of Dalfen Industrial

Dalfen Industrial has purchased Schertz Distribution Center, a Class A industrial property in Schertz, Texas. The 187,288-square-foot property was 70 percent occupied between two major tenants at the time of sale, with TJ Maxx taking up approximately 90,000 square feet and Forward Air Corp. leasing some 50,000 square feet.

Schertz Distribution Center is located at 17745 Lookout Road. The facility includes a loading building that was developed in 2018 and features parking for 225 cars and 21 trailers.

The property is 10 minutes away from San Antonio International Airport and centered around a population of 1.3 million people in a 30-minute radius. The asset provides convenient access to major highways including Interstate 35, which allows for travel to both the San Antonio and Austin metropolitan area. Downtown San Antonio is 20 minutes from the property.

Recently, Dalfen Industrial inked a 10-year lease with Amazon at their Eastpoint Distribution Center in Dallas. The property sits across from a Union Pacific Intermodal Hub in the East Dallas submarket.

The post Dalfen Acquires San Antonio Industrial Property appeared first on Commercial Property Executive.

J.R. Ellis, Senior Director, Greysteel. Image courtesy of Greysteel

Greysteel, a national commercial real estate services firm, is expanding in Texas, opening offices in Austin and San Antonio, with plans to add a Houston office and other locations throughout the state and Central U.S. The firm has hired J.R. Ellis as senior director to co-lead the expansion into Austin and San Antonio.

READ ALSO: Austin Multifamily Report

Ellis, along with Greysteel President & CEO Ari Firoozabadi and Dallas-based Senior Managing Director Doug Banerjee will advance the company’s expansion efforts.

“With an established investment sales and debt and capital markets practice in the Dallas-Fort Worth metroplex, North and West Texas, as well as El Paso markets, Greysteel was attracted to Austin and San Antonio, two of the hottest multifamily markets in the U.S. Following this expansion, we intend to advance the Greysteel platform in Houston and throughout the state,” Firoozabadi told Commercial Property Executive. “J.R. and his team have built a strong presence within the region; we are excited to continue growing our market share together.”

Justin Chambers, Investment Associate, Greysteel. Image courtesy of Greysteel

Ellis, formerly a vice president of investments at Marcus & Millichap, has worked in investment sales, debt and structured finance, as well as property management, where he gained experience with multifamily assets through both operational and financial perspectives. He is charged with leading the Austin-based team and will focus on arranging sales and financings for middle market and private client multifamily properties.

Joining Ellis on the new team is Investment Associate Justin Chambers, who previously worked at Marcus & Millichap as an investment sales agent and as operations manager at KT Waterfront Construction.

Growing the firm

Calling Austin one of the most desired investment markets in the U.S., Firoozabadi said the firm had been considering expansion there for some time but was waiting for the right team to launch the new offices. He said Ellis’ experience in the Austin and San Antonio markets will enhance the company’s expertise in the sector and add value to its clients.

Ellis, in prepared remarks, said joining Greysteel presented an opportunity to expand the firm’s footprint in Austin and San Antonio. He also cited Greysteel’s technology-driven ecosystem and collaborative culture as additional reasons for joining the firm.

The firm now has 14 offices throughout the U.S. including locations in New York, Los Angeles, Phoenix, Washington, D.C., Denver, Philadelphia, Baltimore and Oklahoma City. Greysteel serves and advises private and institutional real estate investors and developers in the marketing, sale and financing of private capital and middle-market real estate assets.

The post Greysteel Expands in Texas appeared first on Commercial Property Executive.

Gardner Peavy, Managing Director San Antonio, CBRE. Image courtesy of CBRE

CBRE has acquired REATA Real Estate, a San Antonio-based firm that focuses on retail, office, medical office and land. With a team of 45 people, REATA covers Central and South Texas. Following the acquisition, the firm’s staff will become part of CBRE’s team of approximately 400 employees who cover the San Antonio market.  

READ ALSO: US Green Office Trend Reaches New Heights

Founded in 2001, REATA currently represents San Antonio spaces including The Vistana’s 1,770 square feet for retail or restaurant space at 100 N. Santa Rosa St., the 29,100 square feet available in the Roadrunner Plaza at UTSA Boulevard and UTEX Boulevard, and the 1.3-acre site at 9823 and 9907 San Pedro Ave. that used to be a Mission Mitsubishi.

 “We like how REATA’s team meshes with our existing San Antonio team,” Gardner Peavy, managing director in CBRE’s San Antonio office, told Commercial Property Executive. “The services REATA provides complement ours and expand our business in South and Central Texas.”

Michael Jersin, REATA’s CEO & partner, said the firm has had a strong relationship with CBRE’s San Antonio office for a long time and joining the company will better allow REATA to serve its clients in more markets and with more services. Earlier this year, CBRE also welcomed a new executive vice president, Jim Batjer.

Strength of San Antonio

REATA and CBRE can expect more coming deals, as business remains healthy in San Antonio. The metro’s office market has been seeing a steady rise in rates, according to a third quarter CBRE office report.

According to the study, asking rates throughout the San Antonio market rose 37 cents, hitting $23.08 per square foot in the third quarter, a 13 percent increase over a five-year period. Vacancy dropped from 14.4 percent in the second quarter to 14 percent flat in the third, as the city is embracing its urban revitalization. Moreover, nearly 1 million square feet of office space was under construction as of the third quarter, the report added.

While the office market is hot, San Antonio’s retail sector has cooled down somewhat, according to CBRE’s third quarter retail report. Occupancy rates bumped down to 94.3 percent, while net absorption remained positive, but dropped to 74,588 square feet. However, the study noted that the local economy is still doing well, as its growing labor force saw a 4.8 percent increase from May to August, with the construction, health-care, and leisure and hospitality sectors seeing strong growth.

The post CBRE Acquires San Antonio Firm appeared first on Commercial Property Executive.

Sunset Professional Building. Image courtesy of Casey Development

Casey Development has delivered the Sunset Professional Building, a 58,000-square-foot medical office building in San Antonio, according to Yardi Matrix. Security Bank provided $11.6 million in construction financing for the project, which broke ground in April 2018.

Situated at 430 W. Sunset Road, 6 miles north of the city center, the three-story building is located alongside the McAllister Freeway on the northern edge of CHRISTUS Santa Rosa Hospital’s Alamo Heights campus.

Prior to groundbreaking, two tenants—WellMed and Baptist Health System’s BHS Physicians Network—had signed leases with the developer for roughly half of the project. Transwestern’s Chad Gunter and John Grubb are heading up leasing efforts for the remainder of the space. The building features 17,460-square-foot floor plates, a rooftop deck and a grade-level parking ratio of five spaces per 1,000 square feet.

More than 2.1 million square feet of office construction is underway in the metro per data from Yardi Matrix, with upwards of 850,000 square feet expected to come online by the end of the year. While most development is concentrated in downtown San Antonio, the metro’s two ongoing medical office projects are located north of the urban core.

The post North San Antonio MOB Opens Doors appeared first on Commercial Property Executive.

San Antonio. Image courtesy of visitsanantonio.com

Navistar International Corp. has made a major commitment to San Antonio with the announcement of plans to develop a new manufacturing facility in the area. The commercial trucks and buses manufacturer will invest $250 million to realize the project.

With the assistance of JLL, Navistar selected a project site in San Antonio’s Southside, along Interstate 35, which is a key thoroughfare that connects the company’s supply bases in the southern U.S. and Mexico. The state-of-the-art facility will allow the company to build Class 6-8 trucks with cutting-edge lean manufacturing practices, thereby paving the way for reduced conversion costs and an enhanced supply chain, as well as the ability to accommodate anticipated growth in the industry.

READ ALSO: San Antonio Office Report – Spring 2019

Navistar’s new San Antonio plant will result in the creation of approximately 600 jobs. The project has received widespread support, with the State of Texas, Bexar County, the San Antonio Economic Development Foundation, CPS Energy and the San Antonio Water System coming together to help facilitate an agreement with Navistar. The State is providing Navistar with an approximately $2.3 million grant from the Texas Enterprise Fund to assist with bringing the facility to fruition.

The next step for the project involves the solidification of additional incentive packages. The San Antonio City Council will review a package on October 31, while Bexar County’s Commissioners Court will consider an offer of assistance at a meeting on November 5. If all goes as planned, Navistar will break ground on the development by year’s end.

Enhancing a leadership position

The Navistar facility will mark yet another big step in San Antonio’s bid to further frame itself as a leading destination for advanced manufacturing. Navistar is not the only car company to make a commitment to metropolitan San Antonio this month. Toyota, headquartered in Plano, Texas, since 2017, revealed that it will invest $391 million at its truck assembly plant in the city, bringing total investment at the site to more than $3 billion. Additionally, Aisin AW, a transmissions and car navigation systems manufacturer, announced plans for a $400 million facility in Cibolo, a suburb of San Antonio. Navistar’s new San Antonio production plant is scheduled to become operational 24 months after construction commences.

The post Navistar’s $250M Industrial Project in San Antonio appeared first on Commercial Property Executive.

800 Dolorosa  

Weston Urban has acquired a 51,508-square-foot office building—also known as the Washington Square Building—in San Antonio from a local private investor. The transaction also included the adjacent 174-space parking lot.  

Located at 800 Dolorosa close to the intersection of interstates 10 and 35, the asset is across the street from the still under construction federal courthouse and the future location of UTSA’s National Security Collaboration Center. Completed in 1978, the four-story building is within walking distance of several governmental buildings such as the San Antonio Public Safety Headquarters, the Central Texas Detention Facility and the Bexar County Human Resources. The tenant roster includes the offices of San Antonio Immigration Court and San Antonio Police Department, but also several law practices such as De Mott, McChesney, Curtright & Armendáriz and the Law Offices of Garcia and Ramirez, according to Yardi Matrix information.     

Chuck King and Ben Jordan from JLL’s San Antonio office worked on behalf of the seller. King is part of the brokerage team selected to handle leasing at the 140,600-square-foot The Soto, one of the largest office projects under construction in the metro.

The post Weston Urban Buys Downtown San Antonio Office Property appeared first on Commercial Property Executive.

Locktite Storage. Image courtesy of JLL

National Storage Affiliates has acquired a nine-property portfolio, comprising a total of 4,835 units across nine cities in Texas. The storage assets, ranging between 29,768 and 155,300 square feet, are in Dripping Springs, Wimberley, Seguin, Conroe, Deer Park, La Porte, Pasadena, Manvel and Houston. JLL arranged the sale on behalf of seller Locktite Storage. 

The largest property included in the portfolio encompasses 1,068 storage spaces and is situated in Dripping Springs at 3000 East Highway, around 20 miles from downtown Austin, Texas, and less than 24 miles from the Austin-Bergstrom International Airport. Built in five phases between 1997 and 2019, the facility features both climate-controlled and drive-up units. Other characteristics include covered parking spaces, 24-hour video surveillance and secured gates.

On the other side of the spectrum, the smallest facility in the portfolio in terms of the number of units is in Manvel at 4000 Bailey Road, near freeways 288 and 35, approximately 20 miles from downtown Houston. The property comprises 98 drive-up and drive-through units, ranging from 437 to 700 square feet. Additional characteristics include video surveillance, secured gates, parking and RV parking spaces.

JLL’s brokerage team included Managing Directors Steve Mellon and Brian Somoza. In January, the duo also brokered the sale of 2,250 units in Illinois and Texas.

The post National Storage Affiliates Buys Texas Portfolio appeared first on Commercial Property Executive.

Nowhere is this more visible than in downtown San Antonio, where the last major delivery occurred in 1989. Now, a revolution is building—a number of ground-up developments and renovation projects are rapidly moving forward, with more than 60 percent of the metro’s office construction activity concentrated in the urban core.

The following table uses data from Yardi Matrix to highlight the top 10 office developments underway in San Antonio as of May.

5. The Soto

The Soto development site. Image via Google Earth

In August 2018, a joint venture between Hixon Properties and Cavender Brothers Management broke ground on The Soto, a 140,600-square-foot Class A speculative office development in central San Antonio. Texas Capital Bank provided the developers with construction financing. Upon completion in early 2020, The mass-timber property—Texas’ first—is taking shape at 711 Broadway St. Completion of the facility is eyed for next year. 

The building will also feature approximately 10,000 square feet of street level retail in addition to a subterranean parking garage. BOKA Powell and Lake|Flato designed the property to achieve LEED certification. Byrne Construction is the general contractor for the office structure, and JLL’s Chuck King and Alcide Longoria are heading up leasing efforts.

4. The Light

The Light. Image courtesy of Transwestern

The fourth largest office development in San Antonio is The Light, planned to offer 148,347 square feet upon completion near the end of 2019. GrayStreet Partners began work on the project, an adaptive reuse of a former newspaper headquarters, in January 2018. The developer secured financing with two construction loans totaling $35.3 million from Frost Bank and Broadway National Bank. The property was designed to meet LEED Gold standards.

Located downtown on 2.2 acres at 420 Broadway St., the development is made up of a three- and a five-story building linked by an elevator lobby. Architecture firm Ford, Powell & Carson, along with CaptureRx, have signed leases for the first two floors. GrayStreet has tasked Brad Kaufman and Larry Mendez with Transwestern with the marketing of the remaining space.

3. Oxbow – Credit Human Headquarters

Oxbow’s development site. Image via Google Earth

The largest office property under construction outside the market’s core, Credit Human’s 203,224-square-foot Class A headquarters is one of two towers underway in the larger Oxbow project in East San Antonio. The building is anticipated to deliver in early 2020.

The developer, a joint venture between Credit Human and Silver Ventures, broke ground on the site in February 2018 and is simultaneously working on the second tower. Credit Human will assume sole ownership of its headquarters once delivered, with Silver Ventures retaining the smaller asset. Bank of America has leased most of the other building, with CBRE marketing the remaining available 40,000 square feet.

2. CPS Energy Headquarters

CPS Energy Headquarters. Image courtesy of CPS Energy

CPS Energy is currently working to completely renovate AT&T’s former regional offices, located downtown at 530 McCullough Ave. The electric and natural gas utility company will, upon the asset’s completion in mid-2020, move its operations to the 433,431-square-foot property from its current 1928-built headquarters at 145 Navarro St. along the River Walk.

Demolition work on CPS’ future headquarters began in early 2017, with construction kicking off in May the following year. General contractor Sundt Construction is working to expand and alter the property, increasing the floor space, replacing the former brick cladding with glass and adding a number of sustainable features. The project is targeting LEED Gold certification.

1. Frost Tower

Frost Tower. Image courtesy of Weston Urban

San Antonio’s largest office development underway is also its nearest to completion, with an expected delivery in June. Clark Construction began work on Weston Urban’s 462,054-square-foot Frost Tower in the first half of 2017, financed by a $141 million construction loan from its anchor tenant, Frost Bank. Once finished, the building will be the first major office completion in the city center since the Weston Centre opened its doors in 1989.

The structure, designed by Pelli Clark Pelli to achieve LEED Silver standards, rises 24 stories at 111 W. Houston St. Along with the office space on the upper floors, the building will feature 20,492 square feet of street retail and structured parking in the base. In addition to Frost Bank, which signed for 280,000 square feet, the property’s future tenants include Ernst & Young and Norton Rose Fulbright.

The article was updated June 21 to include additional details of the Oxbow developments based on information provided by CBRE and Credit Human.

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The Kress Building. Image via Google Street View

WeWork has signed leases totaling 75,000 square feet at the Kress Building and the Grant Building in downtown San Antonio with GrayStreet Partners. The coworking company announced last September their plan to rent space at the Kress, but the leases have only now been signed.  

Located at 305 and 315 E. Houston St., the assets are situated within San Antonio’s growing tech district. The owner teamed up with architecture firm Gensler to renovate the offices, which are anticipated to finish in October this year, per Yardi Matrix information. According to Gensler, the two offices will be joined, and the new five-story property will have a rooftop terrace, landscaping and floor-to-ceiling windows. The street-level retail space will be occupied by a food hall.

WeWork is the second company to sign a lease at the property. The health care IT company, CaptureRx signed a 60,000-square-feet lease in April last year, according to Yardi Matrix data.     

The post WeWork Inks Downtown San Antonio Leases appeared first on Commercial Property Executive.

5505 Kaepa Court. Image via Google Maps

Provender Partners has acquired a 285,476-square-foot industrial facility in San Antonio from beverage distributor Ben E. Keith Co. The seller occupied the asset since it was completed in the early 1990s, but relocated to a larger facility in Selma, Texas. The buyer financed the acquisition with a $14.4 million, three-year loan from Comerica Bank, according to Bexar County records.  

Located at 5505 Kaepa Court, less than 9 miles northeast of downtown San Antonio, the facility grants easy access to both interstates 410 and 35 and is served by Union Pacific Railroad. Features include 40,184 square feet of cooler and 60,991 square feet of freezer space, 55 dock doors, along with 2 acres of trailer parking space.

Provender Partners purchased the 20-acre site asset with the intend to lease it. Founders Scott Delphey and Matthew Delphey from Food Properties Group, together with Endura Advisory Group Principal Charlie Hargis, will handle marketing and leasing at the property.

Recently, Entrada Partners purchased a 484,369-square-foot, four-property industrial portfolio. The 88 percent-occupied assets are close to Interstate 410 loop.    

The post Beverage Distributor Sells San Antonio Industrial Facility appeared first on Commercial Property Executive.

Triangle Park Office Complex. Image courtesy of Yardi Matrix

Money360 has secured a $4.5 million, 7.8 percent fixed-rate bridge loan for the 63,382-square-foot Triangle Park Office Complex in San Antonio. The two-year financing will retire two existing loans which the private owner took out last year, per Yardi Matrix information.

Located at 6322 Sovereign Drive in a dense residential area, the three-building asset is surrounded by both retail and dining options. The office complex is adjacent to Interstate 410 and less than 9 miles north of downtown San Antonio. According to Yardi Matrix data, the Triangle Park was completed in two phases in 1975 and 1982 on a 3.9-acre site. The tenant roster includes medical businesses and local offices of insurance companies.

According to a recent Yardi Matrix seasonal outlook, the San Antonio market has seen a moderate increase in the office-using job market, especially compared to neighboring Austin, Dallas and Houston. Despite this, promising projects such as the $450 million redevelopment of The Alamo and San Pedro Creek Culture Park’s fist phase will jump-start office development in the area.

The post San Antonio Office Park Receives $5M Refi appeared first on Commercial Property Executive.

Gateway Plaza. Image via Google Street View

Nooner Holdings has acquired the 136,553-square-foot Gateway Plaza in the Live Oak suburb of San Antonio from Tryperion Partners. According to Bexar County records, the buyer financed the acquisition with a $10.8 million loan from Standard Insurance Co., which is set to mature in 2044.

HFF Managing Director John Taylor, Director Drew Fuller as well as Analysts Josh Villarreal and Kyle Shaffer brokered the sale on behalf of the seller. Additionally, HFF worked with Tryperion Partners in 2014, when the company purchased the retail property.

Situated at 7505, 7513 and 7529 N. Loop 1604 E., at the corner of Interstate 35 and Loop 1604, the Burlington-anchored asset is roughly 17 miles north of downtown San Antonio. The location grants access to 78,700 residents living within a three-mile radius of the center and earning an average household income of $82,243 per year. Developed in 2008 on a 13.7-acre site, the retail center was 98.3 percent leased at the time of the sale, with tenants including Goodwill, Laser Legend, Furniture Now, James Avery Craftsman and Great Clips.    

“This represents a successful round-trip investment for our client, Tryperion Partners, and an opportunity for Nooner Holdings to create even more significant value on Gateway Plaza with their proactive local management and leasing presence,” said Taylor, in a prepared statement.    

The transaction marks the second acquisition for Nooner Holdings this year, following the purchase of the 171,318-square-foot Military Crossing, a shopping center less than 30 miles of Gateway Plaza.  

If you’d like to be featured in Brokers’ Corner, send your deal to deals@cpe-mhn.com.

The post HFF Arranges Sale of 137 KSF San Antonio Retail Center appeared first on Commercial Property Executive.

Rendering of RidgeWood Plaza II

South Texas developer Worth & Associates is breaking ground today on a Class A office building and orthopaedic medical center totaling 220,000 square feet in suburban San Antonio.

San Antonio Mayor Ron Nirenberg is slated to speak at the groundbreaking ceremony for the two adjacent projects, RidgeWood Plaza II and TSAOG’s RidgeWood Orthopaedic Center, within the RidgeWood Park master-planned office campus.

The pair of projects fronting Highway 281 are scheduled for completion in the summer of 2020. Located between Sonterra Blvd and Redland Road, the two properties will share a parking garage and landscaped courtyard. RidgeWood Plaza II will be a four-story, 123,000-square-foot office building upon completion. The project is designed by Chesney Morales and Kopplow Construction serves as the general contractor.

Operated by TSAOG Orthopaedics, the ROC will be RidgeWood Park’s first medical facility. The stand-alone, three-story property will have a large, state-of-the-art outpatient surgery center that will replace TSAOG’s existing clinic space in the city’s Stone Oak area.

Worth & Associates sees robust office demand

In a prepared statement, Worth & Associates President of Development and Brokerage Clint Worth said the new project builds on the “phenomenal success” of neighboring developments RidgeWood Plaza I and RidgeWood Business Center I & II. The newest of these, RidgeWood Plaza I, is a 148,000-square-foot office building completed in 2015.

“Because of its outstanding location, tenant mix, and class A office buildings, RidgeWood Park is fast becoming San Antonio’s premier business park,” commented Worth in the statement. “The addition of TSAOG as a tenant will add tremendous prestige to the development.”

Worth & Associates owns and manages more than 2.9 million square feet of commercial properties. In May 2018, the developer kicked off Inwood Village I, an office project several miles west of RidgeWood Park. The two-story building will feature 23 Class A, move-in ready office suites. Upon completion, the two-building Inwood Village project will bring nearly 150,000 square feet of office space to the Northwest San Antonio submarket, which has the city’s highest asking rents.

Despite the steady growth of the city’s economy, boosted by the health-care, insurance and manufacturing industries, metropolitan San Antonio saw its office-using job market shrink by 7,000 during 2018, according to Yardi Matrix. The office demand slump was caused by job losses in the financial activities and professional and business services sectors, which were linked to a slowdown in the mortgage industry.

Image courtesy of Worth & Associates

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7402-7648 Reindeer Trail. Image via Google Maps

Entrada Partners has acquired a four-property, 484,369-square-foot industrial portfolio in San Antonio, Texas. Mission Capital Advisors arranged both the sale and the financing of the assets. The portfolio’s total occupancy is 88 percent.

Three of the four assets are located within the Interstate 410 loop, close to the interstate in the northwest area of the city, and all are within 4 miles of Ingram Park Mall. The properties are:

• 7402-7648 Reindeer Trail, a five-building, 251,125-square-foot distribution facility
• 1700 Grandstand Drive, a three-building property which includes 59,863 square feet of light industrial/flex space
• 7042 Alamo Downs Parkway, a 27,987-square-foot light industrial/flex property
• 5405 Bandera Road, a 145,394-square-foot distribution center

Mission Capital Advisors’ Will Sledge and Kyle Kaminski of the asset sales team arranged the transaction on behalf of the seller. Alex Draganiuk and Lexington Henn of the company’s capital debt and equity finance team arranged the non-recourse acquisition loan on behalf of the buyer. In late 2018, the company also arranged a $13 million floating-rate financing for a Chicago retail asset.   

“The mortgage was structured interest-only for the first several years, and also featured release prices for the different properties, giving Entrada significant flexibility to execute its business plan,” Draganiuk said in a prepared statement.

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Gino Sabatini, Head of Investments, W.P. Carey

W.P. Carey Inc. will invest $75 million in a 290,000-square-foot, build-to-suit food production facility in San Antonio. Cambridge Holdings develops the property for its current tenant, Cuisine Solutions, which will provide the money for the rest of the final project cost. 

Construction on the new facility is slated to start in March, once all permits and building plans have been approved. Once completed, it will support Cuisine Solutions’ future growth plans and enable a greater production capacity—a strong need among the company’s core partners. Once completed in 2020, the facility is expected to add more than 500 jobs over the ensuing four years.

The project will be situated in the former U.S. Brooks Air Force base, now a 1,300-acre mixed-use community located under 10 miles from downtown San Antonio.

“The new production facility will not only help Cuisine respond to increasing customer demand, but will create additional value for W.P. Carey shareholders,” Gino Sabatini, W.P. Carey’s head of investments, said in a prepared statement. 

Making improvements

In addition to the new facility, W.P. Carey has invested $10 million to improve Cuisine’s current facility in Sterling, Va. W.P. Carey purchased the asset in 2012.

“The long-term investment from W.P. Carey will enable us to fund our long-term operational needs with a new global food processing facility, while also upgrading our existing Virginia facility,” Stanislas Vilgrain, Cuisine Solutions’ chairman & CEO, said

According to terms of the deal, Cuisine’s existing lease in Virginia will be incorporated into a new triple-net master lease governing both facilities, with a term of 26.5 years and 2 percent rental bumps.

One of the world’s most noted manufacturer and distributor of sous vide foods, Cuisine’s products are utilized by a wide variety of food service providers around the globe. 

W.P. Carey has nearly $17 billion of assets in its REIT portfolio, which includes 1,186 net lease properties and 133 million square feet.

In August, W.P. Carey sold One Bridgestone Park, a three-story, 66,264-square-foot building in Nashville, Tenn., to Yonezawa-Miller Co. for $12.6 million.

Image courtesy of W.P. Carey 

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Military Crossing

SRS Real Estate Partners has brokered the sale of Military Crossing, a 171,318-square-foot community shopping center in San Antonio, Texas. Sold by Santikos Real Estate to Nooner Holdings, the center was almost entirely occupied at the time of the transaction.

Located at 7523 Northwest Loop 410, Military Crossing is part of a major retail corridor near exit 96, off Interstate 410, approximately 12 miles west of downtown. Built between 1996 and 2014, the property spreads across 19 acres and is adjacent to a 633,000-square-foot National Security Agency facility. Tenants include an Academy Sports flagship store, BioLife Plasma Services, Harbor Freight Tools, Chase and Firehouse Subs. Although an anchor tenant, LA Fitness was not part of the sale. 

Eric Lehman of Lehman Real Estate represented the buyer, and SRS’ Webb Sellers, Kyle Stonis, Pierce Mayson, Matthew Mousavi and Patrick Luther acted on behalf of Santikos Real Estate. “We continue to see motivated capital entering the market targeting a combination of quality real estate and attractive yields, which Military Crossing thoroughly provides,” Sellers said, in prepared remarks.

Recently, SRS Real Estate Partners also facilitated the $3.5 million sale of a 19,129-square-foot retail center in Crestwood, Ky.

Image courtesy of SRS Real Estate Partners

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A Storeroom Mini-Storage

The Mele Group of Marcus & Millichap has arranged the sale of A Storeroom Mini-Storage, a 67,900-square-foot facility in New Braunfels, Texas. Marcus & Millichap’s Tampa-based office worked together with the firm’s office in San Antonio to market the property on behalf of the seller, a limited liability company. The brokerage team represented the buyer, also a limited liability company.

Situated at 2957 FM 725, A Storeroom Mini-Storage is close to Interstate 35 and Freeway 46, approximately 40 miles from downtown San Antonio and 8 miles from New Braunfels Regional Airport. The facility is located near several residential zones; there are more than 1,000 units completed or in the planning stages within a 3-mile radius.

The storage facility was built in 1984 and expanded in 2017, yielding an additional 219 units for 582 total units. The 20-building asset occupies 4.6 acres and comprises non-climate-controlled units, ranging from 50 to 300 square feet, Yardi Matrix data shows. The gated facility features drive-up access and security cameras and also offers on-site management.

Marcus & Millichap’s brokerage team included  Jon Danklefs and Michael Mele, investment specialists. In December, the firm’s Tampa- based office also arranged the sale of Storhouse Paxton Street, a 598-unit storage facility in Harrisburg, Pa.

Image courtesy of Yardi Matrix

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Farinon Business Park III

Worth & Associates has commenced construction of Farinon Business Park III, the third of three buildings in the company’s master-planned business community in San Antonio’s northwest submarket. The two-story, Class A office building will encompass a total of 84,890 square feet of rentable space. Completion is slated for the third quarter of 2019.

Located at 5818 Farinon Drive, Farinon Business Park III is part of University Business Park. The office building is set to feature efficient floorplans encompassing 41,186 rentable square feet on the first floor and 43,404 square feet on the second. The business park is within 3 miles of University of Texas at San Antonio.

“We have leased most of Farinon II to Fortune 500 Company Ernst & Young LLP and the project’s phenomenal success made it clear there is a strong demand for high-caliber office space in this location. With only 20,500 square feet of available space at Farinon II, we felt the time was right to expand Farinon Business Park,” Charlie Fulton, Worth & Associates vice president of development, said in a prepared statement.

Rendering courtesy of Worth & Associates

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Move It Storage

StorageMart has acquired Move It Storage, a 72,063-net-rentable-square-foot, Class A facility in San Antonio, Texas. Bellomy & Co. arranged the sale on behalf of the seller, Watson & Taylor Self Storage, and also represented the buyer. The new acquisition marks StorageMart’s fifth facility in the San Antonio area.

Situated at 10930 Braun Road, Move it Storage is near freeways 1604 and 16, around 24 miles from downtown San Antonio and 22 miles from San Antonio International Airport. The area hosts many apartment communities, with more than 7,600 units completed or under construction within a five-mile radius, Yardi Matrix data shows. Built in 2005 and 2008, the seven-building facility sits on 4 acres and comprises units ranging from 25 to 450 square feet. The storage property is gated, climate-controlled and offers drive-up access and parking and RV Parking spaces. Additional services include on-site management. 

Bellomy & Co.’s brokerage team included Principals Bill Bellomy and Michael Johnson. In October, the firm arranged the sale of De Soto KS Self-Storage, a 41,555-rentable-square-foot property in De Soto, Kan.

Image courtesy of Bellomy & Co. 

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18911 Hardy Oak Blvd.

Following the surge in shared space popularity, Venture X has signed a lease extension with OrigoWorks Properties to occupy an additional 7,600 square feet of office space in its current San Antonio building. The coworking space franchise has been a tenant here since May 2017, shortly after the building was completed.

The property is located at 18911 Hardy Oak Blvd., in the Stone Oak master-planned development. Venture X’s three-phase expansion included the addition of lounge areas, three high-tech conference rooms, seven private offices with 88 seats and a café/kitchen. The final phase consisted of the addition of 3,369 square feet of space. Before the completion of the first two phases, Clover Health and Tri-Net were the first companies to sign up for memberships.

Completed in 2016, the asset spreads across two floors and encapsulates approximately 20,000 square feet. Neighborhood amenities include shopping centers, medical centers and accommodation options.

“As a provider of boutique-style concierge services and hotel-inspired, high-level office spaces for businessmen and women, the demand for our service has been beyond expectations,” Venture X San Antonio Business Manager Michelle Solis said in a prepared statement. “Our business model has proven to be a great alternative for businessmen and women and provides the perfect core setting for people to network, mentor and learn across a variety of industries.”

Image courtesy of OrigoWorks

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Aerial view of Brooks

OKIN BPS, a Prague-based business process and services provider, has selected San Antonio for the company’s U.S. headquarters. The expansion will create roughly 1,500 jobs and nearly $23 million in capital investment. As an incentive, OKIN BPS has received a Texas Enterprise Fund grant of $6.6 million.

Following a two-year site selection process, the company’s new corporate offices will take shape in Brooks, a 1,300-acre master-planned, mixed-use community located on the site of the former Brooks Air Force Base, at 3201 Sidney Brooks. Before establishing a permanent headquarters, OKIN BPS will restore two historical buildings that will house its preliminary operations. The urban hub is home to more than 30 businesses spanning the medical, light industrial, technology, education and retail sectors, among others.

Variety takes the lead

The land use divides the campus into three districts featuring a balance between economy, culture and ecology, and providing a combined 750 acres of space for a wide array of uses. District A comprises a mix of retail, schools, park and town center, while District B encompasses residential, office, retail space and a hospital. District C incorporates more than 300 acres available for light industrial or commercial users active in industries including technology, cybersecurity, manufacturing, biomedical and corporate services. It is currently home to DPT Laboratories and Mission Solar Energy.

“As a leader in businesses process services, IT and telecommunications, OKIN BPS is among the fastest-growing service providers combining people, training and technology. By opening its U.S. headquarters right here in San Antonio, OKIN BPS is undertaking its largest ever expansion effort and building its first office outside of Europe,” Governor Greg Abbott said in prepared remarks.

“This project represents a real bullseye for our economic development strategy,” Judge Nelson Wolff added.

Image via Google Maps

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Network Tech Center

St. Croix Capital Cos. has completed the acquisition of University Business Park – Network Tech Center, an office complex totaling roughly 85,000 square feet in San Antonio, according to Yardi Matrix. Tryperion Partners sold the asset, while Quadrant Capital Partners facilitated the deal with $11.9 million in acquisition financing.

Located at 12400, 12450 and 12460 Network Blvd., the property features three single-story buildings delivered in phases, in 1995 and 2000. Current tenants include CPL Labs, CIMA Hospice and Paychex, bringing the asset’s occupancy to 85 percent. Network Tech Center previously changed hands in September 2015, when Tryperion Partners purchased it from Clarion Partners.

The complex is situated on 8.3 acres, providing quick access to major thoroughfares such as Interstate 10 and Loop 1604. Additionally, Network Tech Center is in the proximity of numerous retail venues, restaurants and hotels, including Comfort Suites Medical Center near Six Flags, Hampton Inn & Suites San Antonio Northwest/Medical Center and Days Inn by Wyndham San Antonio Near Fiesta Park.

Image courtesy of Yardi Matrix

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It’s been nearly two decades since the U.S. Green Building Council first developed its Leadership in Energy and Environmental Design (LEED) certification. Since then, the nation’s LEED-certified construction volume has increased to comprise about 40 percent of green construction’s contribution to the economy, according to USGBC’s Leticia McCadden.

The list below highlights the largest office buildings based on square footage that have received LEED certification, or in some cases, re-certification. The ranking is based on Yardi Matrix data.

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USAA Corporate Headquarters – LEED Gold

USAA Corporate Headquarters

The campus at 9800 Fredericksburg Road was built in five phases, beginning in the 1970s and ending in 2001; a full renovation followed in 2014. Its size, like everything else in Texas, is so big that it has its own zip code. Spread across more than 250 acres, the campus consists of three buildings that total more than 5.1 million square feet. In June 2013, it was awarded LEED Gold with a score of 64/110. Notable green features at USAA’s behemoth include sustainable site selection and development, responsible materials selection, enhanced indoor environmental quality, energy efficient design, reduced electrical consumption—24 percent across all USAA-owned and operated facilities since 2008—recycling an average of 63 percent of its waste each year also, reducing fresh water consumption by almost 50 million gallons, all as of 2008. In addition to the LEED Gold certification, the property has been Energy Star Certified every year since 2003.

The Merchandise Mart – LEED Gold

The Merchandise Mart

Since 1930, when The Merchandise Mart opened as the largest building in the world, it has focused on environmental sustainability. In 1986, this 25-story high-rise began operating the world’s largest off-peak cooling system, which manufactures two million pounds of ice per night—the system is still functional today and it helps cool not only The Mart, but other neighboring buildings, too. After a series of sustainable features, which included a recycling program for paper products, glass, lamps, batteries, aluminum and construction materials in 1991, a voluntary initiative to reduce smoke-forming pollutants and energy consumption that enabled the asset to reduce 264,018 pounds of VOC pollution in 2006, The Merchandise Mart received its first LEED certification to the Silver level in 2007 with assistance from The Delta Institute of Chicago. In 2013, it successfully handled the six key areas within the LEED-EB Operations and Maintenance certification review, including sustainable sites, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, and innovations in operations and was awarded LEED Gold.

Merchandise Mart Properties (MMPI), a wholly-owned subsidiary of Vornado Realty Trust and the owner of the asset, continued to invest in upgrades to the property, including erosion control and a landscape plan. Additionally, The Mart utilizes drought-tolerant plans to reduce water consumption, and employs an integrated pest-management plan to reduce harmful toxins that pollute air and water. The building also provides multiple alternative transportation options, including access to public transportation, bicycle storage and on-site shower facilities for riders, and an I-GO hybrid car-sharing program, available 24/7 to Mart staff and tenants. Another building-wide commitment assumed by the owners of the property was to utilize natural light where possible, thus MMPI converted common-area lighting to CFL and LED, retrofitted all exit lights to be more energy efficient and utilizes split lighting levels and light circuits to reduce light usage in the loading dock area.

One World Trade Center – LEED Gold

One World Trade Center

Owned by the Port Authority of New York & New Jersey, the tallest building in the western hemisphere received its LEED Gold certification in 2016. Its green credentials begin with the glass curtain wall that envelops the 104-story tower on all sides from the 20^th floor to the observation deck. The glass is coated to allow natural light reach more than 90 percent of the building’s office areas and reduce artificial lighting. To optimize energy use and indoor air quality, the property uses a building management system comprising thousands of sensors throughout the structure. Stormwater runoff is captured and stored in three retention tanks and is used for cooling and irrigation, reducing the building’s water usage by 41 percent. More than 40 percent of the materials used in construction were recycled, including gypsum boards, ceiling tiles and glass. Also, more than 87 percent of construction waste from the project was diverted from landfill. The facility also uses off-site renewable wind and hydro power.

Workers commuting to One World Trade Center have access to mass transit service from the new complex—new climate-controlled corridors connect the Freedom Tower to The World Trade Center Transportation Hub and the new PATH terminal, 11 NYC Transit subway lines and the new Fulton Street Transit Center, the World Financial Center and ferry terminal, underground parking and retail and dining facilities. The 2001 attacks materialized in a series of life-safety systems, including exit stairs, communication antennae, exhaust and ventilation shafts and elevators (which produce energy through regenerative braking), encased in a concrete core that is 2 feet thick.

MetLife Building – LEED Silver

MetLife Building

Built in 1963, the 58-story, 3.1 million-square-foot office high-rise was fully renovated in 2002. In 2005 Tishman Speyer acquired it and invested in more economical alternatives. In 2012, the 300,000-square-foot facility that houses nearly 1,100 associates, was awarded LEED Silver for Commercial Interiors with a score of 55 out of 110 points. The site’s water efficiency, energy performance and indoor air quality have been upgraded, as well as efficient lighting and water fixtures, Energy Star-rated appliances and equipment.

Empire State Building – LEED Gold

Empire State Building

The iconic 102-story office building, built in 1931, has been subjected to full renovations in 2011, the year when the USGBC awarded it with LEED Gold for Existing Buildings. The certification followed the creation and implementation of a new process for economically justified energy efficient retrofits in the existing built environment, created by a team of Clinton Climate Initiative, Johnson Controls, Jones Lang LaSalle and the Rocky Mountain Institute. The analytical model is non-proprietary and open-source, and has been replicated for other properties around the world.

The retrofit reduced the building’s energy consumption by more than 38 percent and is said to save $4.4 million in energy costs annually and reduce carbon emissions by about 105,000 metric tons over 15 years. In January 2011, Anthony Malkin, chairman & CEO of Empire State Realty Trust—the skyscraper’s owner—agreed to buy carbon offsets totaling 55 million kilowatt hours per year of renewable energy, turning the Empire State Building carbon-neutral. For the 2.8 million-square-foot asset to achieve LEED Gold, it has undergone a series of improvements including: installation of ultra low-flow fixtures in the building’s restrooms, use of green cleaning supplies and pest control products, recycling of tenant waste and construction debris, use of recycled paper products, use of recycled content carpets, low off-gassing wall coverings, paints and adhesives, and a tenant engagement program, including submetering, a tenant energy management system and mandatory green requirements in lease agreements. The trophy tower has a 3,500-square-foot pre-built space on the 42nd floor that has been certified Platinum under LEED for Commercial Interiors.

Aon Center – LEED Silver

Aon Center

The fifth-tallest building in the U.S., Chicago’s Aon Center is owned by The 601W Cos. and managed by JLL. Spanning nearly 2.7 million square feet, the 1972 asset was fully renovated in 1992 and in 2014 was subjected to a cosmetic renovation. The LEED Silver certification was awarded in February 2014 with a score of 54/110. To achieve this level of efficiency, several capital improvements were implemented including: energy-efficient building automation and equipment controls, and low-flow faucets in tenant restrooms and kitchens. Recycling was also expanded to include batteries and old office equipment, preferential parking for hybrid cars and bicycles, and conversion to green cleaning products. All these measures reduced the facility’s consumption by more than 10 percent in 2008 and more than 13 percent in 2009. The building also received a TOBY award as International 2009/2010 office building of the year in its category.

Paramount Plaza – LEED Gold

Paramount Plaza

The Paramount Group made a distinctive step towards sustainability by achieving Gold and Platinum LEED recertification across its entire portfolio—13 million square feet of existing Class A office space in 13 buildings across New York, San Francisco and Washington, D.C. Their largest asset, the 48-story, 2.5 million-square-foot Paramount Plaza at 1663 Broadway, was awarded with LEED Gold certification in 2017, along with the rest of the company’s portfolio. Sustainable Investment Group managed to certify Paramount’s 13 buildings simultaneously in less than a year, even though, typically, one LEED EB project can take between nine and 12 months to reach Gold level certification. Home to two Broadway theaters—the Gershwin and Circle in the Square—Paramount Plaza is estimated to save 1.6 million kilowatt hours per year post the LEED award.

1221 Avenue of the Americas – LEED Silver

1221 Avenue of the Americas

The 50-story, 2.5 million-square-foot office building, owned by the Rockefeller Group, has achieved its first LEED EB-Silver certification in 2009. CodeGreen Solutions and AKF Engineers joined forces to achieve the designation. A second certification process occurred in 2014 and this time the companies focused on water efficiency, alternative transportation and energy/atmosphere through system testing and documentation. In addition to the USGBC award, the property holds a Wired-Platinum score for its technology infrastructure from Wired NYC.

Four World Trade Center – LEED Gold

4 World Trade Center

Opened in 2013, Silverstein Properties’ 4 World Trade Center was the first office tower to begin commercial operation on the 16-acre WTC site. The 72-story asset was designed by architect Fumihiko Maki to meet LEED-Gold standards. Vidaris developed the overall green/LEED thrust for four of Silverstein’s towers of the World Trade Center complex, including the one in question.

For Tower 4, Vidaris preformed a three-dimensional heat-flow analysis of the building envelope, intended to highlight means of reducing the potential for moisture condensation. The 2.5 million-square-foot project is 100 percent powered by renewable sources, including wind, solar and hydroelectric power. It uses 20 percent less electricity than a conventional office building thanks to high-performance elevators, heating and cooling systems; it also uses 30 percent less water thanks to rain water collection and low-flow fixtures. In addition, insulated windows reduce the need for artificial lighting and air-conditioning. A preferred parking program for fuel-efficient vehicles was implemented as part of the LEED requirements. For the construction of the tower, 50 percent of the wood used was sustainably harvested and the construction process used significant amounts of recycled material.

Images courtesy of Yardi Matrix

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Rendering of the Light Building project

GrayStreet Partners is making headway in the Light Building project in downtown San Antonio. The Historic and Design Review Commission has granted a final design approval for the rehabilitation of another property that will be a component of the adaptive reuse development—the Print Building.

Construction on the Light Building is well underway and, with all approvals in check, the company can start work on the Print Building soon. The project is slated for completion by the second quarter of 2019.

Located at 420 Broadway St., the former San Antonio Light building is a historic 1931-built Spanish Colonial Revival property that used to house the San Antonio Light newspaper. Its annex, the Print Building, is situated at 421 N. Alamo St. The structures are connected via a below-grade tunnel and a walkway on the second floor.

Growing demand

GrayStreet acquired the assets from the Hearst Corp. in December 2016 and unveiled plans to transform the industrial site into creative office space. The company selected Transwestern Executive Managing Director Larry Mendez and Senior Associate Brad Kaufman to spearhead preleasing efforts at the property. Late last year, the brokerage firm arranged a lease extension and renewal in downtown San Antonio on behalf of law firm Chamberlain Hrdlicka.

According to Mendez, the San Antonio CBD office market is on the upswing in regard to asking rates and deal velocity. “The Light project will be one of the most sought-after developments recently delivered in San Antonio. The 140,000 square feet of efficient, rectangular floorplates and above-market, generous parking ratios offer solutions never before available in downtown San Antonio,” Mendez explained in prepared remarks.

Neighboring organizations have shown their support for the reconstruction of the historic site that will include adding new fenestration and a modern facade. “We are especially encouraged to see the transformation of the once industrial facades of the Print building into vibrant elevations that open to the street, provide a human scale and are rich in material and detail,” Greg Seiler, CEO of Metropolitan Methodist Hospital, said in a letter of support.

“The Light Building project is a direct response to growing tenant needs. The tenants we are working with will utilize their space to elevate their business and to attract and retain talent. This project is like upgrading a classic car with all new systems,” Kaufman added.

Image courtesy of Transwestern

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802 Trinity

STAG has acquired a 17.9-acre industrial property in Mission, Texas. JLL Industrial Capital Markets arranged the sale on behalf of the previous owner, Colimar Inc.

Located at 802 Trinity St., the 270,084-square-foot property serves as a logistics and manufacturing facility. 

The JLL team consisted of Executive Vice President Dustin Volz, Vice President Zane Marcell and Associate Grant Matthews, with assistance from South Texas Commercial Real Estate’s Founder & Principal Edward Villareal. 

“Logistic and manufacturing efforts traditionally managed in Mexico continue to shift to the U.S. side of the Texas-Mexico border,” Volz told Commercial Property Executive. “This continued shift has driven record low vacancies in McAllen, Laredo, El Paso and other border towns. National and regional credit tenants continue to flock to these markets for their logistical capabilities and strong labor pools.”

In April, AIV Inc.—a subsidiary of STAG Industrial Inc.—bought Brookhollow West Business Park, two fully leased, Class A industrial buildings in northwest Houston, totaling 232,950 square feet. 

Image courtesy of JLL Capital Markets 

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Rendering of new Lynd headquarters

The Lynd Co. has broken ground on a new corporate headquarters in Shavano Park, Texas, just a few miles away from the company’s current San Antonio location. The multifamily management and development firm plans to move into its new space in the summer of 2019.

Located at 4280 N. Loop 1604 W., the three-story office building will encompass 35,000 square feet with an open floorplan and contemporary design, including a two-floor lobby and an all-glass elevator. The third-floor executive offices will wrap around a mezzanine, while the offices and conference rooms will feature butt-glazed glass.

Patriotic feature

The property will include a 1,200-square-foot military museum on the ground floor, which will display artifacts and memorabilia from the Vietnam War, where company Founder Michael Lynd Sr. served as an infantry officer in the U.S. Army. Invest in America’s Veterans Foundation will sublease the museum area, which will be open to the public. Additionally, Lynd will host periodic, free lunches for veterans on the building’s rooftop terrace.

“We’ll not only have multiple rooms tailored for impromptu brainstorming and break-out sessions, the building will have cutting-edge technology so that our real-time performance metrics at the property level are visible at all times,” CEO David Lynd said in prepared remarks.

The Bank of San Antonio provided construction financing for the project. Lynd hired RVK as architect and interior designer and selected Metro as general contractor—both San Antonio-based companies. The real estate firm has leased 20,000 square feet of office space for the past 15 years at the Forum Building located at 8000 Interstate 10 West.

San Antonio’s construction sector has been leading the way in job expansion in the past quarters. With several notable projects underway—such as Frost Bank Tower, Essex Modern City and University Village—the metro is prone to further growth.

Image courtesy of RVK

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Embassy Suites by Hilton San Antonio

Approximately 18 months after its groundbreaking, a new Embassy Suite by Hilton has opened in north San Antonio. The 203-key hotel comprises studio and two-room suites. Owned by ZH Landmark and managed by Zachry Hospitality, this is currently the Hilton brand’s fifth Embassy Suite in the metro.

Located at 5615 Landmark Parkway, at the southeast corner of Interstate 10 and Loop 1604, the hotel is close to popular attractions such as Six Flags Fiesta Texas amusement park, Topgolf and iFly. Dining, shopping and entertainment venues such as The Shops at La Cantera and The Rim Shopping Center are also nearby. The University of Texas at San Antonio is within 3 miles of the asset.

“As the city continues to see more visitors, our hotel provides an ideal location, comfortable suites and value-added incentives to fulfill any traveler’s needs,” said Alan Roberts, global head at Embassy Suites by Hilton, in a prepared statement.

The suits-only hotel includes amenities such as an on-site restaurant, 11,000 square feet of meeting space, convenience store, business center, fitness center and an outdoor pool with bar service.

The opening marks the continued expansion of Hilton’s Embassy Suites brand. In the last few months, Hilton has opened new locations in New Jersey, Seattle and Montreal.

Image courtesy of Embassy Suites by Hilton

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Lone Star Mini Storage

Marcus & Millichap has arranged the sale of two Lone Star Mini Storage properties, totaling 45,680 square feet, located in Ingram, Texas. Marcus & Millichap represented the seller and secured the buyer—both of which are limited liability companies.

Located at 2824 and 3154 Junction Highway, the facilities are within one mile of each other, just off Highway 27 and approximately 74 miles from downtown San Antonio. The assets comprise 351 units ranging in size between 50 and 200 square feet and feature climate control, drive-up access and security cameras.

“We see a great deal of interest from Texas and out of state investors for investment property in the Texas Hill Country,” said Jon Danklefs, investment specialist at Marcus & Millichap in prepared remarks. “Lone Star is the third self-storage property I sold in Bandera and Kerr Counties in the last 15 months and represents the 248^th self-storage transaction by Marcus & Millichap in Texas.”

In June, Marcus & Millichap also brokered the sale of a 33,607-square-foot facility in Richland Hills, Texas.

Image courtesy of Marcus & Millichap

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Office-using employment in San Antonio, click to enlarge

Healthy fundamentals, ideal geographical positioning, diverse economy, skilled workforce, and good infrastructure make San Antonio one of the fastest growing cities in the U.S. The metro’s economy rests on four major industries—hospitality, health care, defense and education—and several Fortune 500 companies.

The market’s office inventory encompasses almost 34 million square feet, with some 416,000 square feet added to the market in 2017. Construction activity has gradually picked up over the past four years thanks to local revitalization initiatives such as the $850 million Urban Renewal Plan that was adopted by the City Council in spring 2017.

Developers are focusing on premier assets that attract companies looking to set up operations in the area and willing to pay a premium for quality office space. Upgraded properties were also in high demand, especially among existing businesses that expanded their local footprint.

Overall office vacancies averaged 14.8 percent in April, due to positive net absorption and strong demand for quality product. Northeast San Antonio and Outlying Bexar County were a magnet for tenants, pushing vacancy rates to 8.9 percent and 9.4 percent, respectively.

Investor activity remained sluggish over the past four quarters, with total sales volume amounting to $107 million in April. More than half of the transactions were concentrated near the expanding suburban-primary areas, especially in the I-10 Corridor submarket.

Read the full Yardi Matrix report.

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Joe DeCola, vice president, NAI Partners

After appointing a new senior vice president to its office project leasing group in Houston, NAI Partners has hired Joe DeCola as vice president. DeCola, a commercial real estate professional, will lead the company’s retail services practice in San Antonio and Austin, commuting between the two cities on a weekly basis.

Besides building the company’s retail services businesses and teams, DeCola will also fill in a newly created player/coach role, where he will provide sales coaching and management to the company’s junior-level producers of the Austin and San Antonio markets. 

Prior to joining NAI Partners, DeCola held the position of director of brokerage performance for the Texas region at commercial real estate firm Retail Solutions. He also served as vice president of brokerage services at CBRE Bradley, and was managing partner for nearly nine years at Bellinsetto Corporation. DeCola holds a B.S. in Speech Communication with a Minor in Business.

Image courtesy of NAI Partners

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4415 Piedras Drive W.

Bow River Capital has named CBRE to oversee management and leasing at the firm’s 237,469-square-foot Centerview Crossing office portfolio in San Antonio, Texas. The owner acquired the Class B assets from Omninet Capital in April, according to Bexar County records. The previous owner had managed the buildings itself, with a Transwestern team leading leasing efforts.

Centerview Crossing comprises seven buildings located at 4502, 4538 and 4606 Centerview Drive, 4335, 4410 and 4415 Piedras Drive W. and 4318 Woodcock Drive in the West San Antonio office submarket. The properties are accessible via Interstate 410, which runs just to the north and provides access around the metro area.

4538 Centerview Drive

According to Yardi Matrix data from March, the buildings have a weighted vacancy rate just shy of 40 percent. The tenant roster includes the City of San Antonio, the U.S. Department of Veteran Affairs and several health-care, insurance and law firms. The structures were constructed between 1968 and 1978, and the previous owner carried out cosmetic renovations in 2014. CBRE’s Lindsey Tucker and Carl Salvato will head up leasing team for the properties.

“We have opened up a new management office at the property, giving tenants face-to-face interaction with the management team. Prior to closing, there was no on-site management presence,” Blake Sheppard, director of asset services with CBRE, told Commercial Property Executive. “Our goal with this office is to bring up the overall level of service for both the tenants and the property.”

Images courtesy of Yardi Matrix

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Jon Erickson, strategic investment partner, HPI (Image courtesy of HPI Real Estate Services & Investments)

HPI Horne Storage, a joint venture between HPI Real Estate Services & Investments and industry veteran Hugh Horne, has recently closed on its first self-storage development project in San Antonio. The joint venture plans to build a national portfolio of more than 20 facilities in the next three to five years. Jon Erickson, strategic investment partner of HPI, revealed the reason behind the venture’s decision to enter the self-storage business in an interview for Commercial Property Executive. He also explained why San Antonio is a valuable investment market.

What are the reasons that stood behind your decision to enter the self-storage business?

Jon Erickson: The self-storage industry was the top performing sector in total shareholder return from 1994-2017 for public equities. Storage tends to challenge many larger private market investors who attempt to access those returns because it is difficult to deploy capital in large amounts while creating value-add and opportunistic returns.

One of the challenges is the transaction size, as HPI Self Storage is projecting development prices of approximately $10 million—with $3-$3.5 million of equity—in most target markets, although this number can increase drastically—above 50 percent—in California and New York. Therefore, we are looking to build a national portfolio of institutional assets that will be attractive to larger institutional buyers. This opportunity was solidified through the partnership with Hugh Horne.

HPI Horne Storage’s first project in San Antonio (Image courtesy of HPI Horne Storage)

What makes the San Antonio self-storage market attractive?

Erickson: HPI Horne Storage is a partnership formed to develop, own and operate state-of-the-art self-storage facilities in select markets throughout the United States. We are looking for trade areas with strong demand indicators and San Antonio has provided a few great opportunities. With that said, there are definitely trade areas in San Antonio, as well as other markets we are developing, that we wouldn’t pursue given demand or supply concerns.

What is the number one demand driver in the San Antonio market? Why do you think this is?

Erickson: Broadly speaking, we think of sufficient demand in the context of high occupancies and increasing rents. San Antonio, along with all the markets we are pursuing in Florida, Colorado, California and others, provides a market with strong population growth, increasing rental rates and in-place rental rates that warrant new construction.

What are the current challenges in the self-storage sector and how can they be overcome?

Erickson: Two current challenges in the self-storage sector are finding good sites and getting them permitted. In trying to build a national portfolio across eight to 12 markets, we wouldn’t be able to miss the landmines if we didn’t have the expertise of Hugh Horne and his team. There are a lot of groups moving into new markets and relying on potential misleading indicators or lack of experience.

What are they key amenities that you consider adding to your developments?

Erickson: Our venture is open to whatever amenities best fit the site and needs of the municipalities. We have seen a lot of mixed-use storage uses and will selectively consider those on a deal by deal basis.

What other markets are part of your expansion plans?

Erickson: We currently have sites in San Antonio, Houston, Orlando and Tampa. Additionally, we have a few in Los Angeles, Denver and Dallas that we are currently negotiating. We have raised over $30 million of equity, with HPI Storage Fund I to fund the first eight to 10 developments, and will potentially have all that capital committed prior to the fourth quarter of 2018.

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10126 Potranco Road, San Antonio

HPI Horne Storage, a joint venture of HPI Real Estate Services & Investments and self-storage industry veteran Hugh Horne, is set to build a new 134,000-square-foot facility in San Antonio. SBS Construction is the general contractor and Archon Architecture is the designer of the development, which is slated for completion by April 2019. The facility will be managed by a self-storage public real estate investment trust.

The new building will be positioned at 10126 Potranco Road on 3.7 acres near freeways 151 and 1604, roughly 17 miles from downtown San Antonio. The area is densely populated; approximately 106,000 people live within a three-mile radius, with an average income of around $64 000. The property will offer 979 climate-controlled units.

“This is the first of several sites we are developing in high profile, but undersupplied trade areas in San Antonio,” said Hugh Horne, president of HPI Horne Storage, in prepared remarks. “On top of our San Antonio projects, we are building a national portfolio of 20 plus properties over the next three to five years.”

The joint venture’s second project will be situated at 12727 Vista Del Norte, east of Blanco Road and Wurzbach Parkway. In addition to this, HPI has a third facility planned near the Pearl District.

Rendering courtesy of HPI Horne Storage

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Worth & Associates has broken ground on Inwood Village I, a two-story office building in San Antonio, Texas. The property will consist of 23 prefinished suites ranging in size from 1,500 to 3,000 square feet, and four larger suites between 4,500 and 11,000 square feet. The project is slated for completion in December 2018, with the developer already preleasing the spaces.

Located at 2722 Bitters Road, Inwood Village I will be ready for use upon move-in, with suites offering 10-foot ceilings and pre-wired fiber access through AT&T and Spectrum. Tenants will have access to a fully equipped break room, common conference facility, as well as an outdoor patio and deck.

Upon full completion, Inwood Village will comprise two office buildings encompassing 71,000 to 76,000 square feet. Amenities will include on-site property management services, outdoor meeting and break areas, security cameras and a card access system.

Hands-on developer

Worth & Associates is not only developing the project—the company is also overseeing property management and leasing at the property, with Shawn Gulley and Rob Gish handling leasing efforts. The firm also offers brokerage services, arranging an 18,557-square-foot lease in March 2018 on behalf of WellMed Medical Group at the Oaks at University Business Park in San Antonio.

Inwood Village is situated at the intersection of Bitters Road and Loop 1604, and provides convenient access to further major thoroughfares such as Interstate 10 and Highway 281.

“This is a unique product type in San Antonio, as the office suites will be move-in ready, rather than being delivered as shell spaces,” said Clint Worth, president of development and brokerage at Worth & Associates, in a prepared statement. “These offices will be ideal for the entrepreneur, CPA, attorney, wealth manager or anyone who may have started their business from home or spun off from an existing location and have outgrown their space, but don’t want to commit to the initial investment or long-term lease that goes along with building out an office space.”

Renderings courtesy of Worth & Associates

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Foster Ridge in San Antonio

Construction has commenced on Foster Ridge Distribution Center, a 327,000-square-foot, cross-dock industrial property in San Antonio. Koontz Corp. is developing the facility, designed to accommodate either a single tenant or multiple smaller ones.

Favorable Location

The 21-acre site, located at the intersection of Interstate 10 and North Foster Road, provides good visibility and is part of the Northeast San Antonio industrial market. With the planned expansion of Foster Road to four lanes , the property will provide easier access throughout Texas, via interstates 35, 410 and Route 130.

“For the last decade, Austin and San Antonio have outpaced almost all other metro areas in the country in terms of population and job growth,” Koontz Corp. President & CEO Bart Koontz told Commercial Property Executive.

Powers Brown Architecture is responsible for the design of the industrial building, while Pape Dawson serves as civil engineer and R.C. Page as general contractor. With an expected completion in the first quarter of 2019, the distribution center will include:

• 32-foot high ceilings
• speed bays
• optimized column spacing
• up-to-date ESFR fire safety system
• 75 dock high overhead doors
• four ramps
• 130-foot truck courts

“Given that much of the industrial property immediately northeast of San Antonio along IH35 is already built-out to the point that congestion is becoming an issue, we believe that our IH10 location will provide a great option for tenants,” added Koontz. “The site’s proximity to HEB’s new industrial site also bodes well for future demand within the submarket. In addition, for distribution tenants with a more regional focus, the Foster Ridge site will provide an attractive rental rate advantage over similar properties in the Austin market.”

Rendering courtesy of Koontz Corp. 

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Tru by Hilton Downtown San Antonio

Tru by Hilton has expanded its Texas footprint by opening up its newest hotel in downtown San Antonio. This debut marks the second Tru by Hilton property in the state and its first adaptive reuse project, creating the Tru by Hilton Downtown San Antonio from the facade of the Gillespie Ford Building. The hotel is owned and managed by Baywood Hotels.

The first two floors of the new hotel kept the property’s original pie-shaped framework, while restoring the exterior stuccowork and creating a larger lobby area. The 95-key hotel Tru by Hilton features a complimentary build-your-own Top It breakfast bar, a 24/7 Eat. & Sip., mobile check-in, a social media wall, a fitness center, free Wi-Fi, a business center and a 2,880-square-foot lobby with work, play, eat and lounge areas.

“The San Antonio property is an example of how we are strategically pursuing adaptive reuse projects to open in higher barrier-to-entry markets,” said Alexandra Jaritz, global head, Tru by Hilton, in a prepared statement. “We want to be wherever our guests are traveling.”

Tru by Hilton Downtown San Antonio is within close proximity to the San Antonio Riverwalk, Six Flags Fiesta Texas, the Henry B. Gonzalez Convention Center, SeaWorld, the Alamo, Lackland Air Force Base and Rivercenter Mall.

Image courtesy of Hilton

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Bluegreen Vacations Corp. has acquired The Éilan Hotel and Spa, a 165-key luxury boutique hotel in San Antonio for $34.3 million, previously known as a Marriott Autograph Collection Hotel. This transaction reflects the firm’s strategy of transforming hotels into vacation ownership resorts. Zions Bank will provide $24.3 million for the acquisition of the resort and another $3.2 million for future improvement costs.

“The Éilan Hotel & Spa is a natural acquisition for us. With over 85 percent of our owners in a four- to six-hour drive distance from our now 68 properties across the U.S., San Antonio is a drivable destination for many. As we continue our westward expansion, we focus on choice, flexibility and quality,” Ahmad Wardak, Bluegreen Vacations’ EVP of Corporate Development and Innovation, told Multi-Housing News. “The Éilan Hotel & Spa captures all three of these and marks out first property in Texas. More than 10 percent of our existing owner base live in Texas and its surrounding states.”

Located at 18603 La Cantera Terr., north of the River Walk—a public park along the San Antonio River—The Éilan is close to various shopping, dining and entertainment venues such as the San Antonio Museum of Art, the Texas wine country, a Six Flags theme park, the 36-hole La Cantera Golf Club, The Rim shopping center, Shops at La Cantera and Top Golf. Additionally, the hotel is some 20 miles from downtown San Antonio.

The Tuscan-inspired hotel offers 13 rooms totaling 20,000 square feet of meeting and event space for up to 165 people, a 12,000-square-foot fitness center and free Wi-Fi throughout the property. Other common-area amenities include:

• outdoor swimming pool with private cabanas
• spa with 10 treatment rooms
• two tennis courts
• indoor pool
• virtual golf room

Additional office space

The company plans to add 13,000 square feet of office space by the end of the year. Other upgrades will include improvements to the pool area (new landscapes, chairs and cabanas), as well as some minor changes to bring the property up to Bluegreen Vacations’ standards, Wardak says. BBX Capital Corp., a diversified real estate holding company, owns 90 percent of Bluegreen Vacations Corp. Bluegreen;s recent conversion includes the Blake in Chicago through its Fee-Based Services business.

“Additionally, this is a natural extension to continue to leverage our partnership with Bass Pro Shops, which has a store location directly across the street from the Éilan Hotel & Spa,” Wardak continues. “We also have a unique partnership with Choice Hotels. In the future, the Éilan Hotel & Spa will be a part of the Choice Ascend collection.” 

Image courtesy of Bluegreen Vacations Corp.

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Enterprise Industrial Park, San Antonio, Texas

Colony Industrial, the industrial platform of global real estate firm Colony NorthStar, has acquired Enterprise Industrial Park, a two building, Class A light industrial complex in San Antonio, Texas, for $52.1 million.

“San Antonio has been on our radar as a target market due to population growth, job growth, demographics and the lack of good quality, light industrial product, which is our focus,” Michael P. Wenaas, Colony Industrial’s managing director and Head of Investments, told Commercial Property Executive. “We generally target smaller properties that are well-located, multi-tenanted, and high quality…this project checked a lot of boxes for us.”

Located at 17745 Lookout Road, the duo of buildings total 639,797 square feet and serve as the home of a roster of nine high-quality tenants with a weighted average lease term remaining of 5.3 years. At the time of the deal, the property was 88 percent leased.

Some 80,000 square feet is still available, and that space can be divided into two 40,000 square-foot spaces, which many prospective tenants look for in an asset. The site already has several prospects for the remaining space.

“San Antonio is somewhat underserved with light industrial product,” Wenaas said. “The way e-commerce is growing, we believe there is a lack of product to serve San Antonio’s population base. Most of the population growth in San Antonio is in the North and Northeast submarkets and these two buildings will serve those markets. This fits right in the middle of the growth curve of San Antonio.”

Originally constructed in 2015, Enterprise Industrial Park is situated within one mile of a full-diamond interchange of Interstate 35, the city’s major North-South interstate highway.

Expanding its Footprint

Andrew C. Goodman, Colony Industrial’s CFO, concurred that the company was excited to expand its portfolio of light industrial warehouse properties in this new high-growth market.

“We seek assets that are well located, close to major metros,” he told CPE. “The markets that we are in are targeted markets with strong fundamentals—population growth, limited supply and strong demographics.”

CBRE’s Randy Baird, Jonathan Bryan, and Ryan Thornton brokered the deal.

It’s been a busy month in the industrial sector. CT Realty recently sold four industrial buildings in Southern California for $31 million; BLT Enterprises acquired an industrial facility in San Diego’s submarket of Carlsbad, Calif., for $38.3 million; and AIV Inc.—a subsidiary of STAG Industrial Inc.—has acquired Brookhollow West Business Park, two fully leased, Class A industrial buildings in northwest Houston, totaling 232,950 square feet.

Image courtesy of Colony Industrial

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FollettUSA has purchased Extra Space Storage, a 93,000-net-rentable-square-foot, Class A self-storage facility in San Antonio. SkyView Advisors represented the seller in the transaction.

The property is located on roughly 2.7 acres at 4515 De Zavala Road, near Interstate 10. More than 22,000 cars transit the area daily and over 100,000 people live within a three-mile radius. Completed in 2005, Extra Space Storage comprises 739 climate- and 24 non-climate-controlled units, ranging from 25 to 400 square feet. The facility also features drive-up access, security cameras and parking spaces. Other services provided include on-site management and 24-hour access.

“This Class A property sold during lease-up at approximately 50 percent physical occupancy. The buyer is a new entrant into the San Antonio market and has a diverse portfolio of real estate holdings both within and outside of self storage. Our marketing process ensured that we reached all potential buyers for this deal, which is significant given the changing landscape of the buyer pool,” said Ryan Clark, director of investment sales at SkyView Advisors, in prepared remarks.

Images courtesy of SkyView Advisors

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The Oaks at University Business Park

San Antonio-based R.L. Worth & Associates has leased an 18,557-square-foot medical office space at The Oaks at University Business Park to WellMed Medical Group. The Oaks IV is part of the company’s four-building, 363,000-square-foot flex office park situated in the master-planned University Business Park. Constructed last year, the building comprises a total of 65,048 square feet.

“R.L. Worth worked closely with us to ensure the space met our every need, and they continue to give us first-rate service as our landlord. It was a natural decision to expand our San Antonio footprint here,” said Mark Feinberg, VP of WellMed, in prepared remarks.

Common-area amenities include:

• walking trails
• retaining pond stocked with fish
• a 22,500-square-foot recreational facility
• park benches
• kitchen
• free Wi-Fi
• conference area
• bicycles for tenant use
• bocce ball courts
• a three-hole putting green and checkerboard game tables

The University of Texas is located nearby, along with several other restaurants and retail options.

Image courtesy of R.L. Worth & Associates

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Mesa Vista Inn Healthcare Center

HFF has secured the sale of Mesa Vista Inn Healthcare Center, a 144-bed, post-acute skilled nursing facility in San Antonio’s Medical Center district. HFF Senior Director David Fasano, and Senior Managing Director Ryan Maconachy and Chad Lavender worked on behalf of the seller, Kayne Anderson Real Estate, and procured the buyer, an affiliate of O&M Investments LLC.

The Bexar county assessors’ office most recently evaluated the property at $5.2 million. Leased to Senior Care Centers, the building was completed in 2008. Located at 5756 N. Knoll Drive, the 50,528-square-foot property offers easy access to Huebner Road, Bandera Road and Connally Loop. The Methodist Hospital and South Texas Veterans Health Care Hospital are both located nearby.

Late last year, HFF closed the sale of  a 90-bed skilled nursing facility in Greenville, Ill. 

Photo via Google Maps

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The Bevy Hotel Boerne in Texas

Phoenix Hospitality Group has broken ground on a $25 million hotel and conference center in Boerne. The Bevy Hotel Boerne, a DoubleTree by Hilton property, is set to open in early 2019 at 101 Herff Road, and local officials hope it will draw conventions and other meetings to the area.

Partlow Properties & Investments is the project’s co-owner and co-developer, while international architecture firm Cooper Carry is in charge of the building’s design.  

The Bevy Hotel Boerne is slated to encompass 120 rooms and suites and will be part of a 20-acre plot of land owned and developed by Ross Partlow and Tim Lange from Partlow Properties, together with Phoenix Hospitality Group partners Ed McClure and John Corcoran.

The parcel is bordered by Interstate 10 and Main Street, just southeast of Boerne’s historic downtown. The full-service luxury hotel will feature outdoor event spaces, wraparound porches, swimming pool, firepits, restaurant and a 7,200-square-foot conference center. 

PHG’s hospitality portfolio includes properties that are both under the company’s ownership and management, such as the 2016-built Hilton Garden Inn and Conference Center-Live Oak in San Antonio.

Image courtesy of Phoenix Hospitality Group

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Blanco Crossing, San Antonio, Texas

Capstone Real Estate Services has grown its management portfolio with the addition of four communities across Texas and New Mexico. The new contracts include more than 600 apartments in Denison, San Antonio and Alvin, as well as a 188-unit multifamily property in Albuquerque.

Located at 3415 Southbend Drive in Denison, just south of the border with Oklahoma, the Residences at Gateway Village came online last year. Including 180 luxury apartments across seven three-story buildings, the community features a resort-style swimming pool, fitness center, clubhouse and a business center. Parking is available for residents on-site for an additional fee. 

Blanco Crossing is a 324-unit property situated at 13999 Old Blanco Road in San Antonio. Drought Properties owns the community, which was completed in 1994. Blanco Crossing was 93.2 percent occupied as of December 2017, according to Yardi Matrix data. Featuring two swimming pools, a fitness center, three separate laundry facilities and almost 700 parking spaces, the property offers residents a mix of one-, two- and three-bedroom units.

Affordable housing communities

Villas Esperanza, Albuquerque, N.M.

The other two multifamily properties under Capstone management offer affordable housing. The Oaks at Mustang, containing 126 units at 2101 Mustang Road in Alvin, was formerly known as Garden Gate Apartments. A private investor acquired the property in November 2017 for $4.8 million, according to Brazoria County records. Residential amenities for the nine-building community include a swimming pool and on-site parking.

The fourth community, Villas Esperanza, is located at 3901 Lafayette Drive, N.E., in Albuquerque and was built in 2002 by Marcrum Management. The Amerland Group acquired the asset in 2004. Comprising 188 units across 24 two-story buildings, the community contains a mix of one- to four-bedroom apartments. The amenity base include on-site laundry facilities and covered parking.

Last December, Capstone expanded its property management portfolio in the Southwest by more than 1,000 units.

Images courtesy of Yardi Matrix

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Nacogdoches Crossing in San Antonio

Santikos Real Estate Services has sold Nacogdoches Crossing, a 22,434-square-foot neighborhood shopping center in San Antonio. A private investor acquired the asset, while HFF’s team of Managing Director John Taylor and Director Drew Fuller, represented the seller.

“Nacogdoches Crossing garnered significant interest from local and national investors due to the value-add nature of the asset, future development potential and Walmart shadow anchor,” said Taylor, in prepared remarks.

The Walmart-shadow-anchored retail center is located at 6826 North Loop 1604 E in the Northeast submarket. The asset is situated on a 5.9-acre parcel and includes two acres of unbuilt land that can hold roughly 19,000 square feet of new retail space.

Tenants at Nacogdoches Crossing include Cato Fashions, Taco Cabana, Rolling Oaks Dental and Subway. The property is a 17-mile drive away from downtown San Antonio, being exposed to more than 121,000 vehicles per day.

“Real estate diversification is one of the key pillars in our strategy to provide returns for the John L. Santikos Foundation,” said Aaron Kinsey, vice president of Real Estate at Santikos, in a prepared statement. “The Nacogdoches Crossing sale and subsequent redeployment of that capital allow us to continue to support our charitable mission for San Antonio.”

Earlier this month, HFF arranged the sale of a 68,000-square-foot shopping center in Denver, also working on behalf of the seller.

Image via Google Street View

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Commercial real estate developer R.L. Worth & Associates leased 54,000 square feet of office space to Ernst & Young at Farinon Business Park, a flex office development that will total 186,437 square feet upon completion.

The property is a three-building office complex located northwest of downtown in the master-planned business community of University Business Park, near The University of Texas at San Antonio. Farinon will occupy a 21-acre site and will feature a Hill Country landscape with native oak trees and outdoor seating, up to 7/1,000 parking ratio, convenient ingress and egress to IH-10, De Zavala Road and Huebner Road. moreover, the location is minutes away from the South Texas Medical Center and 11 miles from the San Antonio International Airport.

“We are extremely excited about this major lease, not only for its implications for our company, but also for the economic development opportunities it carries for the city of San Antonio,” R.L. Worth Senior Vice President of leasing Rick Littleton said in a prepared statement. “EY selected San Antonio for its new campus after a multi-market search, and they chose Farinon Business Park primarily because of its proximity to the pipeline of financial services talent coming out of UTSA.”

Growth strategy

Ernst & Young will occupy the entire second floor of Building II, currently under construction, which will be a two-story class A office building with 102, 699 square feet. About 48,500 square feet are still available for lease in Building II. Building III is currently in the planning stage and consists of a two-story class A building with 84,890 square feet, which will start construction during the first quarter of 2018 and slated for delivery in the spring of 2019.  

“EY’s Financial Services Organization (FSO) is excited to announce a new San Antonio-based client service delivery center that will bring technology, business process support and other professional services to our clients,” added Bucky Feagans, executive director of EY’s service delivery centers. “The Farinon Business Park offers EY a great space to build out EY@Work, the firm’s workplace model. The new space will provide a work environment to promote teaming and collaboration among our people.”

EY’s U.S. headquarters was recently relocated to Brookfield Property Group’s One Manhattan West in New York City, where it will occupy 17 floors.

Images courtesy of R.L. Worth & Associates

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The 20-story, $116 million Thompson San Antonio Hotel and The Arts Residences will finally break ground on January 30 at 123 Lexington Ave.

The 337,000-square-foot mixed-use hotel-condominium tower will be situated at the intersection of North St. Mary’s Street and Lexington Avenue, across the river from the Tobin Center for the Performing Arts. Completion date is anticipated for 2019.

“The Thompson San Antonio hotel and The Arts Residences will truly be a landmark project –redefining luxury downtown living by offering residents exceptional customer service and unparalleled amenities from 24-hour concierge and room service, a spa, first-class restaurant, a pool deck and more,” Roberto Contreras, CEO of DC Partners, said in prepared remarks. “The premier location and proximity to the Tobin Center and the performing arts district places residents in the epicenter of San Antonio’s thriving downtown.”

Event attendees will include City of San Antonio elected officials, representatives of the San Antonio Chamber of Commerce, San Antonio Hispanic Chamber of Commerce, Centro San Antonio, Jordan Foster Construction, Two Roads Hospitality, Powers Brown Architecture, Universal Services Group and Kuper Sotheby’s International Real Estate. Moreover, representatives of DC Partners—which is entering the San Antonio market for the first time—and The Arts Residences sales team will be on hand, as well as prospective buyers and owners.

Record Sales

About 40 percent of the condominium homes in The Arts Residences at the Thompson San Antonio hotel have already been sold since the sales gallery opened in May 2017, setting a record for the fastest-selling high-rise luxury condominium project in Texas. The for-sale units are priced from the high $400s to over $4.5 million for penthouses.

“Residents of The Arts Residences will live an elegant, concierge lifestyle within minutes of San Antonio’s finest cultural and entertainment offerings,” added Acho Azuike, Chief Operations Officer of DC Partners. “A limited number of these incomparable condominium homes remain for those discriminating enough to recognize their timeless value. Now more than ever is the time to be part of this once-in-a-lifetime opportunity.”

Images courtesy of DC Partners

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Right Move Self Storage

Bellomy & Co. has arranged the sale of three assets in Texas. The firm brokered the sale of two self-storage facilities in Houston and San Antonio and a self-storage development site in Austin. Bellomy & Co. represented the seller in two of the deals and procured the buyer in all three transactions.

At 12310 Perry Road in Houston, Right Move Storage is located alongside Highway 249 and provides access to Beltway 8. Storage Solutions Perry Road LP sold the facility to a Houston-based buyer. Right Move Storage sits on a 7.9-acre site and comprises 99,445 net rentable square feet, 742 units and climate- and non-climate controlled spaces.

Judson Storage

Store It All Self Storage has acquired Judson Storage, at 14989 Judson Road in San Antonio, a 129,573-net-rentable-square-foot facility, which comprises 606 units. The property was 72 percent occupied at the time of the sale. In this transaction, HLB Investments represented the San Antonio-based seller, and Bellomy & Co. procured the buyer.

Located at the corner of Interstate 35 and Teri Road, the Teri Lane is a 1.3-acre development site, less than five miles from downtown Austin. Bellomy & Co. represented the buyer, liberty Storage Austin South LLC and procured the seller, TD Storage.

The company’s brokerage team included Bill Bellomy, Michael Johnson and John Arnold. The team also arranged the sale of Waukee Storage Masters, a self-storage facility in Waukee, Iowa, in November 2017.

Images Courtesy of Yardi Matrix

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The Cake Boss, Buddy Valastro

Cake Boss Buddy Valastro from TLC’s Carlo’s Bakery will open a new location at The Shops at La Cantera in San Antonio early next year. The bakery will be the first San Antonio location and the fourth one in Texas.

The San Antonio venue will encompass 1,892 square feet and will offer the brand’s full menu of signature treats, including the custom cakes featured on the show. The grand opening is scheduled for the spring of 2018, with Buddy Valastro and his family as hosts. Moreover, he will also bring his Italian restaurant concept, Buddy V’s, to The Shops at La Cantera.

“Texas has become a home away from home for me and the famiglia these past couple of years,” Valastro said in a prepared statement. “Honestly, that southern hospitality gets us every time. We feel welcomed with open arms, so finally laying down some roots in San Antonio is something we’ve been looking forward to for some time now. I’m so happy we’re going to open our doors there and we are so excited to really bring a slice of Hoboken to the wonderful people of San Antonio. What you get in Hoboken is exactly what you’re going to get in San Antonio—we wouldn’t have it any other way.”

Image courtesy of Carlo’s Bakery

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Connally Oaks Medical Center, San Antonio

Ridgeline Capital Partners acquired the Connally Oaks Medical Center in San Antonio, south of the Northeast Baptist Hospital. The deal marks the company’s seventh acquisition since its launch in early 2014.

Built in 2008, the three-story, 42,000-square-foot Connally Oaks Medical Center is situated a 2130 NE Loop 410. The class A asset is 95 percent occupied by eight medical practices on triple-net leases, anchored by a national oncology group. Other tenants include primary care, physical therapy, neurology, podiatry, dentistry and pain management specialists.

Compelling asset

“This acquisition was attractive for us due to the property’s strategic location, high visibility, strong tenants and institutional quality construction,” Jeff Axley, Ridgeline’s founder & managing principal, said in prepared remarks.

“The high-quality construction and highly specialized uses make this a compelling asset for us. The purpose-built cancer center, which includes a linear accelerator vault, offers leading-edge treatments in medical and radiation oncology and chemotherapy. The oncology group’s proven long-term commitment combined with other best-in-class providers on the second and third floors, makes this a very attractive asset,” added Hunter Cain, Ridgeline’s senior vice president.

The transaction falls under the company’s mission, which entails the acquisition of healthcare facilities in Texas and across the sun Belt with more than 40,000 square feet and occupancies ranging from 50 to 100 percent.

Image courtesy of Ridgeline Capital Partners

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